Sherwin-Williams Sees Net Sales Falling in 2020 If Conditions Don't Improve
April 29 2020 - 8:12AM
Dow Jones News
By Adriano Marchese
Sherwin-Williams Co. said Wednesday that it anticipates
consolidated net sales to fall in 2020 if the economic conditions
don't improve until early 2021, and revised its full-year
guidance.
In its first-quarter report, the Cleveland-based paints company
said it expects full-year net sales to fall by a mid- to high
single-digit percentage.
This compares with its previous full-year sales guidance of a
rise of 2% to 4%, it said.
The company also lowered its forecast for diluted net income per
share in 2020 to a range of $16.46 to $18.46 from its previous
guidance of $19.91 to $20.71. It earned $16.49 a share in 2019.
However, should economic conditions begin to return to normal in
the third quarter of 2020, with continued improvement in the
fourth, Sherwin-Williams estimates full-year consolidated net sales
will be somewhere between flat and a low single-digit percentage
fall.
In the shorter term, the company expects to feel the weight of a
weaker U.S. economy as it sees no immediate and meaningful
improvement in most end-markets it serves.
"We anticipate that the rapid deterioration of the U.S. and
global economies experienced late in the first quarter due to the
Covid-19 pandemic will most likely continue through the second
quarter," Chairman and Chief Executive Officer John G. Morikis
said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 29, 2020 07:57 ET (11:57 GMT)
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