CLEVELAND, July 28, 2020
/PRNewswire/ --
- Consolidated net sales decreased 5.6% in the quarter to
$4.60 billion
-
- Net sales from stores in U.S. and Canada open more than twelve calendar months
decreased 6.9% in the quarter
- Diluted net income per share increased to $6.48 per share in the quarter compared to
$5.03 per share in the second quarter
2019
-
- Excluding the impact of acquisition-related amortization
expense, diluted net income per share increased to $7.10 per share in the quarter versus
$6.57 per share in the second quarter
2019, excluding the impact of acquisition-related costs and other
adjustments
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) increased 6.2% in the quarter to $979.0 million, or 21.3% of sales
- Net operating cash increased 42% year-to-date to
$1.07 billion, or 12.3% of
sales
- Increasing FY20 diluted net income per share guidance to a
range of $19.21 to $20.71 per share, including acquisition-related
amortization expense of $2.54 per
share. Prior FY20 guidance was $16.46
to $18.46 per share, including
acquisition-related amortization expense of $2.54 per share
The Sherwin-Williams Company (NYSE: SHW) announced its financial
results for the second quarter ended June 30, 2020. Compared
to the same period in 2019, consolidated net sales
decreased $273.8 million, or 5.6%, to $4.60 billion in the quarter and decreased
$168.0 million, or 1.9%, to
$8.75 billion in the first six
months. The decrease in the quarter was due primarily to impacts of
COVID-19, which caused demand softness in some end markets in The
Americas Group and the Performance Coatings Group, and unfavorable
currency translation rate changes, partially offset by higher sales
to most of the Consumer Brands Group's retail customers. The
estimated impact from COVID-19 on consolidated net sales during the
quarter and first six months was 8.2% and 5.2%, respectively.
Currency translation rate changes decreased consolidated net sales
by 1.5% in the second quarter and 1.4% in the first six
months. Diluted net income per share increased to $6.48 per share in the second quarter compared to
$5.03 per share in the second quarter
of 2019. Second quarter 2020 included a charge of $.62 per share for acquisition-related
amortization expense. Second quarter 2019 included charges of
$.63 per share for
acquisition-related amortization expense, $.12 per share for integration costs and
$.79 per share for a tax credit
investment loss. Diluted net income per share increased to
$9.93 per share in the first six
months compared to $7.65 per share in
the same period in 2019. The first six months of 2020 included a
charge of $1.24 per share for
acquisition-related amortization expense. The first six months
of 2019 included charges of $1.27 per share for acquisition-related
amortization expense, $.19 per share
for integration costs, $.79 per share
for a tax credit investment loss and $.27 per share for pension settlement
expense.
Net sales in The Americas Group decreased 8.4% to $2.52 billion in the quarter and decreased
1.7% to $4.83 billion in the first
six months due primarily to the impacts of COVID-19 on demand in
most end market segments served, partially offset by higher DIY
paint sales in the U.S. and Canada. Net sales from stores in the U.S. and
Canada open for more than twelve
calendar months decreased 6.9% and 0.7% in the quarter and first
six months, respectively, over last year's comparable periods.
Segment profit decreased $12.7
million to $599.7 million in
the quarter due primarily to lower paint sales volume, partially
offset by moderating raw material costs and good cost control.
Segment profit increased $44.5
million to $988.0 million in
the first six months primarily due to strong first quarter sales
volume momentum realized prior to COVID-19 and favorable customer
and product mix. Segment profit as a percent of net sales increased
to 23.8% in the second quarter compared to 22.2% in the second
quarter last year, and increased to 20.5% in the first six months
compared to 19.2% in the first six months last year, primarily due
to favorable customer and product mix and good cost control.
Net sales of the Consumer Brands Group increased 21.8% to
$980.2 million in the quarter and
increased 9.8% to $1.60 billion in
the first six months. The increase in the quarter and first six
months was due primarily to higher volume sales to most of the
group's North American and European retail customers, partially
offset by softer sales in Asia
Pacific. Segment profit increased to $237.4 million in the quarter from $140.7 million in the second quarter last year
due primarily to higher volume sales, moderating raw material
costs, good cost control and actions taken over the past year to
improve our international operating margins. Segment profit as a
percent of net external sales increased in the quarter to 24.2%
from 17.5% in the second quarter last year. Acquisition-related
amortization expense reduced segment profit as a percent of net
external sales by 230 basis points in the second quarter 2020
compared to 280 basis points in the second quarter of 2019. In the
first six months, segment profit increased to $320.9 million from $228.6
million in the first six months last year primarily due to
higher volume sales, moderating raw material costs, good cost
control and actions taken over the past year to improve our
international operating margins. Segment profit as a percent of net
external sales in the first six months was 20.0% compared to 15.7%
in the first six months last year. Acquisition-related amortization
expense reduced segment profit as a percent of net external sales
by 280 basis points in the first six months compared to 310 basis
points in the first six months of 2019.
The Performance Coatings Group's net sales decreased 16.5%
to $1.10 billion in the quarter and
decreased 9.0% to $2.32 billion in
the first six months. The decrease in both the quarter and first
six months was due primarily to softer end market demand in most
businesses, partially due to the impacts of COVID-19, and
unfavorable currency translation rate changes, partially offset by
increased sales in the packaging division within our Performance
Coatings Group in all regions. Currency translation rate changes
decreased the group's net sales by 3.0% and 2.6% in the quarter and
first six months, respectively. Segment profit decreased in the
second quarter to $97.4 million from
$150.3 million in the second quarter
last year and to $211.1 million in
the first six months from $249.0
million in the first six months last year due primarily to
sales volume decreases, partially offset by moderating raw material
costs and good cost control. Segment profit as a percent of net
external sales decreased in the quarter to 8.9% from 11.4% in the
second quarter last year. Acquisition-related amortization expense
reduced segment profit as a percent of net external sales by 470
basis points in the second quarter 2020 compared to 410 basis
points in the second quarter of 2019. Segment profit as a percent
of net external sales decreased in the first six months to 9.1%
from 9.8% in the first six months last year. Acquisition-related
amortization expense reduced segment profit as a percent of net
external sales by 460 basis points in the first six months compared
to 420 basis points in the first six months of 2019.
The Company generated $1.07
billion in net operating cash during the first six months of
2020, an increase of 42% compared to the same period in 2019,
primarily driven by an increase in earnings and improved working
capital management. The Company's liquidity position remained
strong with $188.1 million in cash
and $2.96 billion of unused capacity
under its revolving credit facilities at June 30, 2020. Our
leverage ratio measured as total debt to adjusted EBITDA improved
to 2.8 times in the second quarter of 2020 compared to 3.3 times in
the second quarter of 2019. The Company purchased 1,700,000 shares
of its common stock in the first six months, and at June 30,
2020, had remaining authorization to purchase 6.75 million shares
of its common stock through open market purchases.
Commenting on the results, John G.
Morikis, Chairman and Chief Executive Officer, said, "My
sincere thanks goes to our entire global team for their resilience
and determination in bringing solutions to our customers under very
challenging circumstances this quarter. Consolidated net sales
improved sequentially in each month of the quarter, led by
unprecedented demand for architectural DIY paint in North America. While sales were down by a
mid-single digit percentage overall, favorable customer and product
mix, lower input costs and strong spending controls enabled us to
deliver significantly improved performance compared to last year's
second quarter. Gross margin expanded 330 basis points to 48%, and
adjusted earnings per share increased 8.1% to $7.10 per share. Adjusted EBITDA grew 6.2% to
$979.0 million, or 21.3% of sales,
compared to 18.9% in second quarter last year.
"In The Americas Group, our teams adjusted quickly to meet
customer demand while we temporarily shifted to curbside pickup and
delivery, and delivered better than expected sales and profit
results with sequential improvement through the quarter. In the
Consumer Brands Group, higher volume sales through the Group's
North American retail customers resulted in a 21% sales gain and
improved segment profit. In the Performance Coatings Group,
softening industrial demand and the impact of COVID-19 affected
most of the end markets and all of the geographies served.
"We anticipate sequential improvement in demand for the third
quarter compared to the second quarter with demand softness
continuing in some end markets in the U.S. and global environments
for the remainder of 2020. Given the trends and indicators we
see at this time, we anticipate third quarter 2020 consolidated net
sales will be up or down low single digits versus the third quarter
of 2019.
"For the full year 2020, we now expect full year consolidated
net sales will be approximately flat to last year. Our revised
sales guidance continues to reflect uncertainties in the timing and
pace of improvement in the U.S. and global environments.
Considering our revised sales guidance, we are increasing our
diluted net income per share guidance for 2020 to be in the range
of $19.21 to $20.71 per share compared to our previous
guidance of $16.46 to $18.46 per share and compared to $16.49 per share earned in 2019. Full year 2020
earnings per share guidance includes acquisition-related
amortization expense of approximately $2.54 per share. Full year 2019 earnings per
share included acquisition-related costs of $3.21 per share and other adjustments of
$1.42 per share."
Conference call information
The Company will conduct a conference call to discuss its
financial results for the second quarter, and its outlook for the
third quarter and full year 2020, at 11:00
a.m. EDT on Tuesday, July 28, 2020. The conference call
will be webcast simultaneously in the listen only mode by Issuer
Direct. To listen to the webcast on the Sherwin-Williams website,
click on
https://investors.sherwin-williams.com/events-and-presentations,
then click on the webcast icon following the reference to the
July 28th release. The webcast will
also be available at Issuer Direct's Investor Calendar website,
www.investorcalendar.com. An archived replay of the webcast will be
available at
https://investors.sherwin-williams.com/financials/quarterly-results/.
About The Sherwin-Williams Company
Founded in 1866, The Sherwin-Williams Company is a global leader
in the manufacture, development, distribution, and sale of paint,
coatings and related products to professional, industrial,
commercial, and retail customers primarily in North and
South America with additional
operations in the Caribbean
region, Europe, Asia and Australia. Sherwin-Williams manufactures
products under well-known brands such as
Sherwin-Williams®, Valspar®, HGTV
HOME® by Sherwin-Williams, Dutch Boy®,
Krylon®, Minwax®, Thompson's® Water Seal®,
Cabot® and many more. With global headquarters in
Cleveland, Ohio,
Sherwin-Williams® branded products are sold exclusively
through a chain of more than 4,900 company-operated stores and
facilities, while the company's other brands are sold through
leading mass merchandisers, home centers, independent paint
dealers, hardware stores, automotive retailers, and industrial
distributors. The Sherwin-Williams Performance Coatings Group
supplies a broad range of highly-engineered solutions for the
construction, industrial, packaging and transportation markets in
more than 120 countries around the world. Sherwin-Williams shares
are traded on the New York Stock Exchange (symbol: SHW). For more
information, visit www.sherwin.com.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains certain "forward-looking
statements," as defined under U.S. federal securities laws, with
respect to sales, earnings and other matters. These statements can
be identified by the use of forward-looking terminology such as
"believe," "expect," "may," "will," "should," "project," "could,"
"plan," "goal," "potential," "seek," "intend" or "anticipate" or
the negative thereof or comparable terminology. These
forward-looking statements are based upon management's current
expectations, estimates, assumptions and beliefs concerning future
events and conditions. Readers are cautioned not to place undue
reliance on any forward-looking statements. Forward-looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of the Company
that could cause actual results to differ materially from such
statements and from the Company's historical results and
experience. These risks, uncertainties and other factors include
such things as: general business and economic conditions; the
Company's ability to successfully integrate past and future
acquisitions into its existing operations, as well as the
performance of the businesses acquired; strengths of retail and
manufacturing economies and the growth in the coatings industry;
changes in the Company's relationships with customers and
suppliers; changes in raw material availability and pricing;
adverse weather conditions or impacts of climate change, natural
disasters and public health crises, including the COVID-19
pandemic; the duration, severity and scope of the COVID-19 pandemic
and the actions implemented by international, federal, state and
local public health and governmental authorities to contain and
combat the outbreak and spread of COVID-19, which may exacerbate
one or more of the aforementioned and/or other risks, uncertainties
and factors more fully described in the Company's reports filed
with the Securities and Exchange Commission (SEC); and other risks,
uncertainties and factors described from time to time in the
Company's reports filed with the SEC. Since it is not possible to
predict or identify all of the risks, uncertainties and other
factors that may affect future results, the above list should not
be considered a complete list. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Investor Relations Contacts:
Jim
Jaye
Senior Vice President, Investor Relations & Corporate
Communications
Direct: 216.515.8682
james.r.jaye@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct:
216.566.2766
eric.r.swanson@sherwin.com
Media Contact:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
Regulation G Reconciliations
Management of the Company believes that investors' understanding
of the Company's operating performance is enhanced by the
disclosure of diluted net income per share excluding certain
Valspar acquisition-related costs and other adjustments. This
adjusted earnings per share measurement is not in accordance with
U.S. generally accepted accounting principles (GAAP). It should not
be considered a substitute for earnings per share computed in
accordance with U.S. GAAP and may not be comparable to similarly
titled measures reported by other companies. The following tables
reconcile diluted net income per share computed in accordance with
U.S. GAAP to adjusted diluted net income per share.
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
December 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
(after-tax
guidance)
|
|
Pre-Tax
|
Tax
Effect
(1)
|
After-
Tax
|
|
Pre-Tax
|
Tax
Effect
(1)
|
After-
Tax
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
|
$
|
6.48
|
|
|
|
|
$
|
9.93
|
|
|
$
|
19.21
|
|
|
$
|
20.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
amortization
expense (2)
|
$
|
.82
|
|
$
|
.20
|
|
.62
|
|
|
$
|
1.63
|
|
$
|
.39
|
|
1.24
|
|
|
2.54
|
|
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
|
$
|
7.10
|
|
|
|
|
$
|
11.17
|
|
|
$
|
21.75
|
|
|
$
|
23.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Year Ended
|
|
June 30,
2019
|
|
June 30,
2019
|
|
December 31,
2019
|
|
Pre-Tax
|
Tax
Effect
(1)
|
After-
Tax
|
|
Pre-Tax
|
Tax
Effect
(1)
|
After-
Tax
|
|
Pre-Tax
|
Tax
Effect
(1)
|
After-
Tax
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
|
$
|
5.03
|
|
|
|
|
$
|
7.65
|
|
|
|
|
$
|
16.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trademark
impairment
|
|
|
|
|
|
|
|
|
$
|
1.31
|
|
$
|
.31
|
|
1.00
|
|
Brazil indirect tax
credit
|
|
|
|
|
|
|
|
|
(.54)
|
|
(.18)
|
|
(.36)
|
|
California litigation
expense
provision reduction
|
|
|
|
|
|
|
|
|
(.37)
|
|
(.09)
|
|
(.28)
|
|
Tax credit investment
loss
|
|
$
|
(.79)
|
|
.79
|
|
|
|
$
|
(.79)
|
|
.79
|
|
|
|
(.79)
|
|
.79
|
|
Pension plan
settlement expense
|
|
|
|
|
$
|
.35
|
|
.08
|
|
.27
|
|
|
.35
|
|
.08
|
|
.27
|
|
Total other
adjustments
|
—
|
|
(.79)
|
|
.79
|
|
|
.35
|
|
(.71)
|
|
1.06
|
|
|
.75
|
|
(.67)
|
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration costs
(3)
|
$
|
.15
|
|
.03
|
|
.12
|
|
|
.24
|
|
.05
|
|
.19
|
|
|
.88
|
|
.19
|
|
.69
|
|
Acquisition-related
amortization expense (2)
|
.82
|
|
.19
|
|
.63
|
|
|
1.64
|
|
.37
|
|
1.27
|
|
|
3.29
|
|
.77
|
|
2.52
|
|
Total
acquisition-related costs
|
$
|
.97
|
|
$
|
.22
|
|
|
.75
|
|
|
$
|
1.88
|
|
$
|
.42
|
|
1.46
|
|
|
$
|
4.17
|
|
$
|
.96
|
|
3.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
|
$
|
6.57
|
|
|
|
|
$
|
10.17
|
|
|
|
|
$
|
21.12
|
|
|
|
|
|
(1)
|
The tax effect is
calculated based on the statutory rate and the nature of the item,
unless otherwise noted.
|
(2)
|
Acquisition-related
amortization expense consists primarily of the amortization of
intangible assets related
to the Valspar acquisition and is included in
Amortization.
|
(3)
|
Integration costs
consist primarily of professional service expenses, salaries and
other employee-related
expenses dedicated directly to the integration effort, and
severance expense. These costs are included in
Selling, general and administrative and other expenses and Cost of
goods sold.
|
Management of the Company believes that investors' understanding
of the Company's operating performance is enhanced by the
disclosure of earnings before interest, taxes, depreciation and
amortization (EBITDA) excluding the Valspar acquisition and other
adjustments. This measurement is not in accordance with U.S. GAAP.
It should not be considered a substitute for net income or net
operating cash. The following tables reconcile net income computed
in accordance with U.S. GAAP to EBITDA for 2020 and Adjusted EBITDA
for 2019.
(millions of
dollars)
|
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
Six Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
|
Net income
|
$
|
321.7
|
|
|
$
|
595.9
|
|
|
$
|
917.6
|
|
Interest
expense
|
86.2
|
|
|
88.1
|
|
|
174.3
|
|
Income
taxes
|
70.6
|
|
|
151.5
|
|
|
222.1
|
|
Depreciation
|
66.5
|
|
|
66.1
|
|
|
132.6
|
|
Amortization
|
78.1
|
|
|
77.4
|
|
|
155.5
|
|
EBITDA
|
$
|
623.1
|
|
|
$
|
979.0
|
|
|
$
|
1,602.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
Six Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
March 31,
2019
|
|
June 30,
2019
|
|
June 30,
2019
|
|
|
|
|
|
|
Net income
|
$
|
245.2
|
|
|
$
|
471.0
|
|
|
$
|
716.2
|
|
Interest
expense
|
91.0
|
|
|
89.2
|
|
|
180.2
|
|
Income
taxes
|
53.7
|
|
|
204.7
|
|
|
258.4
|
|
Depreciation
|
64.7
|
|
|
65.0
|
|
|
129.7
|
|
Amortization
|
78.8
|
|
|
78.1
|
|
|
156.9
|
|
EBITDA
|
533.4
|
|
|
908.0
|
|
|
1,441.4
|
|
Pension plan
settlement expense
|
32.4
|
|
|
|
|
32.4
|
|
Integration
costs
|
9.3
|
|
|
13.5
|
|
|
22.8
|
|
Adjusted
EBITDA
|
$
|
575.1
|
|
|
$
|
921.5
|
|
|
$
|
1,496.6
|
|
|
|
|
|
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Statements of
Consolidated Income (Unaudited)
|
(millions of
dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,604.0
|
|
|
$
|
4,877.8
|
|
|
$
|
8,750.7
|
|
|
$
|
8,918.7
|
|
Cost of goods
sold
|
|
|
2,395.1
|
|
|
|
2,696.4
|
|
|
|
4,652.1
|
|
|
|
5,002.2
|
|
Gross
profit
|
|
|
2,208.9
|
|
|
|
2,181.4
|
|
|
|
4,098.6
|
|
|
|
3,916.5
|
|
Percent to
net sales
|
|
|
48.0%
|
|
|
|
44.7%
|
|
|
|
46.8%
|
|
|
|
43.9%
|
|
Selling, general and
administrative expenses
|
|
|
1,291.3
|
|
|
|
1,331.3
|
|
|
|
2,598.9
|
|
|
|
2,575.3
|
|
Percent to
net sales
|
|
|
28.0%
|
|
|
|
27.3%
|
|
|
|
29.7%
|
|
|
|
28.9%
|
|
Other general
(income) expense - net
|
|
|
(1.1)
|
|
|
|
7.2
|
|
|
|
2.6
|
|
|
|
6.7
|
|
Amortization
|
|
|
77.4
|
|
|
|
78.1
|
|
|
|
155.5
|
|
|
|
156.9
|
|
Interest
expense
|
|
|
88.1
|
|
|
|
89.2
|
|
|
|
174.3
|
|
|
|
180.2
|
|
Interest and net
investment income
|
|
|
(0.6)
|
|
|
|
(0.6)
|
|
|
|
(1.2)
|
|
|
|
(1.0)
|
|
Other expense -
net
|
|
|
6.4
|
|
|
|
0.5
|
|
|
|
28.8
|
|
|
|
23.8
|
|
Income before income
taxes
|
|
|
747.4
|
|
|
|
675.7
|
|
|
|
1,139.7
|
|
|
|
974.6
|
|
Income
taxes
|
|
|
151.5
|
|
|
|
204.7
|
|
|
|
222.1
|
|
|
|
258.4
|
|
Net income
|
|
$
|
595.9
|
|
|
$
|
471.0
|
|
|
$
|
917.6
|
|
|
$
|
716.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
6.59
|
|
|
$
|
5.13
|
|
|
$
|
10.11
|
|
|
$
|
7.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
6.48
|
|
|
$
|
5.03
|
|
|
$
|
9.93
|
|
|
$
|
7.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
90,469,663
|
|
|
|
91,775,295
|
|
|
|
90,772,818
|
|
|
|
91,864,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
91,952,798
|
|
|
|
93,561,725
|
|
|
|
92,437,775
|
|
|
|
93,566,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Business
Segments (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Net
|
|
Segment
|
|
Net
|
|
Segment
|
|
External
|
|
Profit
|
|
External
|
|
Profit
|
|
Sales
|
|
(Loss)
|
|
Sales
|
|
(Loss)
|
Three Months Ended
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
2,523.7
|
|
|
$
|
599.7
|
|
|
$
|
2,756.0
|
|
|
$
|
612.4
|
|
Consumer Brands
Group
|
|
980.2
|
|
|
|
237.4
|
|
|
|
804.5
|
|
|
|
140.7
|
|
Performance Coatings
Group
|
|
1,099.8
|
|
|
|
97.4
|
|
|
|
1,317.0
|
|
|
|
150.3
|
|
Administrative
|
|
0.3
|
|
|
|
(187.1)
|
|
|
|
0.3
|
|
|
|
(227.7)
|
|
Consolidated
totals
|
$
|
4,604.0
|
|
|
$
|
747.4
|
|
|
$
|
4,877.8
|
|
|
$
|
675.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
4,829.2
|
|
|
$
|
988.0
|
|
|
$
|
4,910.9
|
|
|
$
|
943.5
|
|
Consumer Brands
Group
|
|
1,602.5
|
|
|
|
320.9
|
|
|
|
1,459.0
|
|
|
|
228.6
|
|
Performance Coatings
Group
|
|
2,317.4
|
|
|
|
211.1
|
|
|
|
2,547.8
|
|
|
|
249.0
|
|
Administrative
|
|
1.6
|
|
|
|
(380.3)
|
|
|
|
1.0
|
|
|
|
(446.5)
|
|
Consolidated
totals
|
$
|
8,750.7
|
|
|
$
|
1,139.7
|
|
|
$
|
8,918.7
|
|
|
$
|
974.6
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Consolidated
Financial Position (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash
|
$
|
188.1
|
|
|
$
|
145.6
|
|
|
Accounts receivable,
net
|
|
2,472.5
|
|
|
|
2,659.1
|
|
|
Inventories
|
|
1,788.6
|
|
|
|
1,894.9
|
|
|
Other current
assets
|
|
434.0
|
|
|
|
390.4
|
|
|
Short-term
borrowings
|
|
(559.5)
|
|
|
|
(808.8)
|
|
|
Current portion of
long-term debt
|
|
(0.7)
|
|
|
|
(1,437.8)
|
|
|
Current portion of
operating lease liabilities
|
|
(369.4)
|
|
|
|
(361.7)
|
|
|
Accounts
payable
|
|
(1,848.4)
|
|
|
|
(2,067.9)
|
|
|
Other current
liabilities
|
|
(1,681.6)
|
|
|
|
(1,666.4)
|
|
|
Working
capital
|
|
423.6
|
|
|
|
(1,252.6)
|
|
|
Property, plant and
equipment, net
|
|
1,798.6
|
|
|
|
1,773.6
|
|
|
Goodwill and
intangibles
|
|
11,510.5
|
|
|
|
12,005.5
|
|
|
Operating lease
right-of-use assets
|
|
1,696.6
|
|
|
|
1,667.5
|
|
|
Other non-current
assets
|
|
605.6
|
|
|
|
649.5
|
|
|
Long-term
debt
|
|
(8,289.4)
|
|
|
|
(7,209.5)
|
|
|
Postretirement
benefits other than pensions
|
|
(262.5)
|
|
|
|
(259.9)
|
|
|
Deferred income
taxes
|
|
(953.2)
|
|
|
|
(1,114.7)
|
|
|
Long-term operating
lease liabilities
|
|
(1,390.7)
|
|
|
|
(1,362.2)
|
|
|
Other long-term
liabilities
|
|
(1,269.2)
|
|
|
|
(1,149.7)
|
|
|
Shareholders'
equity
|
$
|
3,869.9
|
|
|
$
|
3,747.5
|
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Selected
Information (Unaudited)
|
(millions of
dollars, except store count data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Depreciation
|
$
|
66.1
|
|
|
$
|
65.0
|
|
|
$
|
132.6
|
|
|
$
|
129.7
|
|
Capital
expenditures
|
|
35.7
|
|
|
|
76.5
|
|
|
|
142.3
|
|
|
|
127.9
|
|
Cash
dividends
|
|
122.7
|
|
|
|
105.0
|
|
|
|
245.6
|
|
|
|
209.8
|
|
Amortization of
intangibles
|
|
77.4
|
|
|
|
78.1
|
|
|
|
155.5
|
|
|
|
156.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other general (income) expense - net:
|
|
|
|
|
|
|
Provision for
environmental related matters - net
|
$
|
8.5
|
|
|
$
|
6.7
|
|
|
$
|
10.7
|
|
|
$
|
7.3
|
|
(Gain) loss on sale or
disposition of assets
|
|
(9.6)
|
|
|
|
0.5
|
|
|
|
(8.1)
|
|
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other expense - net:
|
|
|
|
|
|
|
Domestic pension plan
settlement expense
|
|
|
|
|
|
|
|
|
|
$
|
32.4
|
|
Loss on extinguishment
of debt
|
|
|
|
|
|
|
$
|
21.3
|
|
|
|
|
Investment and royalty
income
|
$
|
(4.9)
|
|
|
$
|
(0.8)
|
|
|
|
(2.6)
|
|
|
|
(5.6)
|
|
Net expense from
banking activities
|
|
2.4
|
|
|
|
2.7
|
|
|
|
5.2
|
|
|
|
5.4
|
|
Foreign currency
transaction related losses (gains)
|
|
6.5
|
|
|
|
(1.8)
|
|
|
|
10.4
|
|
|
|
(3.9)
|
|
Other
(1)
|
|
2.4
|
|
|
|
0.4
|
|
|
|
(5.5)
|
|
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
transfers:
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Brands Group
|
$
|
875.2
|
|
|
$
|
981.0
|
|
|
$
|
1,745.7
|
|
|
$
|
1,773.8
|
|
Performance Coatings Group
|
|
44.3
|
|
|
|
30.3
|
|
|
|
76.3
|
|
|
|
58.8
|
|
The Americas Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Count
Data:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas Group -
net new stores
|
|
(19)
|
|
|
|
5
|
|
|
|
(17)
|
|
|
|
20
|
|
The Americas Group -
total stores
|
|
4,741
|
|
|
|
4,716
|
|
|
|
4,741
|
|
|
|
4,716
|
|
Performance Coatings
Group - net new branches
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Performance Coatings
Group - total branches
|
|
281
|
|
|
|
281
|
|
|
|
281
|
|
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consists of
items of revenue, gains, expenses and losses unrelated to the
primary business purpose of the Company. No items are individually
significant.
|
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SOURCE The Sherwin-Williams Company