CLEVELAND, Oct. 27, 2020 /PRNewswire/ --
- Consolidated net sales increased 5.2% in the quarter to
$5.12 billion
-
- Net sales from stores in U.S. and Canada open more than twelve calendar months
increased 3.1% in the quarter
- Diluted net income per share increased to $7.66 per share in the quarter compared to
$6.16 per share in the third quarter
2019
-
- Excluding the impact of acquisition-related amortization
expense, diluted net income per share increased to $8.29 per share in the quarter versus
$6.65 per share in the third quarter
2019, excluding the impact of acquisition-related costs and other
adjustments
- Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) increased in the quarter to
$1.11 billion, or 21.6% of
sales
- Net operating cash increased 54% year-to-date to
$2.56 billion, or 18.5% of
sales
- Increasing FY20 diluted net income per share guidance to a
range of $21.49 to $21.79 per share, including acquisition-related
amortization expense of $2.51 per
share. Our most recent FY20 guidance was a range of $20.96 to $21.46
per share, including acquisition-related amortization expense of
$2.54 per share.
The Sherwin-Williams Company (NYSE: SHW) announced its financial
results for the third quarter ended September 30, 2020.
Compared to the same period in 2019, consolidated net sales
increased $254.5 million, or 5.2%, to $5.12 billion in the quarter and increased
$86.5 million, or 0.6%, to
$13.87 billion in the first nine
months. The increase in the quarter was due primarily to higher
sales to most of the Consumer Brands Group's retail customers in
all regions, continued strong sales in residential repaint and DIY
in North American stores in The Americas Group, and a return to
growth in the Performance Coatings Group. The estimated impact from
COVID-19 on consolidated net sales during the quarter was not
material, but was a decrease of approximately 3% for the first nine
months. Currency translation rate changes decreased consolidated
net sales by 1.3% in the first nine months. Diluted net income per
share increased to $7.66 per share in
the third quarter compared to $6.16
per share in the third quarter of 2019. Third quarter 2020 included
a charge of $.63 per share for
acquisition-related amortization expense. Third quarter 2019
included charges of $.63 per share
for acquisition-related amortization expense and $.14 per share for integration costs, partially
offset by a benefit from the resolution of the California litigation of $.28 per share. Diluted net income per share
increased to $17.60 per share in the
first nine months compared to $13.82
per share in the same period in 2019. The first nine months of 2020
included a charge of $1.87 per share
for acquisition-related amortization expense. The first nine months
of 2019 included charges of $1.90 per share for acquisition-related
amortization expense, $.33 per share
for integration costs, $.79 per share
for a tax credit investment loss and $.27 per share for pension settlement expense,
partially offset by a benefit from the resolution of the
California litigation of
$.28 per share.
Net sales in The Americas Group increased 2.8% to $2.98 billion in the quarter and were flat at
$7.81 billion in the first nine
months. The increase in the quarter was due primarily to higher
residential repaint, DIY and new residential paint sales in the
U.S. and Canada, partially offset
by the impacts of COVID-19 on demand in some end market segments
served. Flat sales in the first nine months were due primarily to
the impacts of COVID-19 on demand in most end markets served in the
second quarter. Net sales from stores in the U.S. and Canada open for more than twelve calendar
months increased 3.1% and 0.7% in the quarter and first nine
months, respectively, over last year's comparable periods. Segment
profit increased $83.8 million to
$747.4 million in the quarter and
$128.3 million to $1.74 billion in the first nine months due
primarily to favorable customer and product mix and moderating raw
material costs. Segment profit as a percent of net sales increased
to 25.1% in the third quarter compared to 22.9% in the third
quarter last year, and increased to 22.2% in the first nine months
compared to 20.6% in the first nine months last year.
Net sales of the Consumer Brands Group increased 23.5% to
$838.1 million in the quarter and
increased 14.2% to $2.44 billion in
the first nine months. The increase in the quarter was due
primarily to higher volume sales to most of the group's retail
customers in all regions. The increase in the first nine months was
due primarily to higher volume sales to most of the group's North
American and European retail customers. Segment profit increased to
$198.3 million in the quarter from
$114.9 million in the third quarter
last year. In the first nine months, segment profit increased to
$519.2 million from $343.5 million in the first nine months last
year. The increases in the quarter and first nine months were due
primarily to higher volume sales, favorable product mix, moderating
raw material costs, 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 23.7% from 16.9% in
the third quarter last year. Acquisition-related amortization
expense reduced segment profit as a percent of net external sales
by 270 basis points in the third quarter 2020 compared to 340 basis
points in the third quarter of 2019. Segment profit as a percent of
net external sales in the first nine months was 21.3% compared to
16.1% in the first nine months last year. Acquisition-related
amortization expense reduced segment profit as a percent of net
external sales by 270 basis points in the first nine months
compared to 320 basis points in the first nine months of 2019.
The Performance Coatings Group's net sales increased 1.2%
to $1.31 billion in the quarter and
decreased 5.6% to $3.62 billion in
the first nine months. The increase in the quarter was due
primarily to higher sales volume and improving demand in most
businesses and regions, led by our Packaging and Industrial Wood
divisions. The decrease in the first nine months was due primarily
to softer end market demand in most businesses, mostly due to the
impacts of COVID-19, and unfavorable currency translation rate
changes, partially offset by increased sales in the Packaging and
Coil divisions in all regions. Currency translation rate changes
decreased the group's net sales by 1.4% and 2.2% in the quarter and
first nine months, respectively. Segment profit increased in the
third quarter to $155.3 million from
$137.5 million in the third quarter
last year due primarily to moderating raw material costs and higher
sales volumes. Segment profit decreased to $366.4 million in the first nine months from
$386.5 million in the first nine
months last year due primarily to sales volume decreases, partially
offset by moderating raw material costs and good cost control.
Currency translation rate changes decreased segment profit by 4.1%
in the quarter. Segment profit as a percent of net external sales
increased in the quarter to 11.9% from 10.7% in the third quarter
last year. Acquisition-related amortization expense reduced segment
profit as a percent of net external sales by 410 basis points in
the third quarter 2020 compared to 420 basis points in the third
quarter of 2019. Segment profit as a percent of net external sales
in the first nine months was flat to the first nine months last
year at 10.1%. Acquisition-related amortization expense reduced
segment profit as a percent of net external sales by 440 basis
points in the first nine months compared to 420 basis points in the
first nine months of 2019.
The Company generated $2.56
billion in net operating cash during the first nine months
of 2020, an increase of 54% 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 $619.9 million in cash
and $3.50 billion of unused capacity
under its revolving credit facilities at September 30, 2020.
Our leverage ratio measured as total debt to adjusted EBITDA
improved to 2.5 times in the third quarter of 2020 compared to 3.0
times in the third quarter of 2019. The Company purchased 2,300,000
shares of its common stock in the first nine months, and at
September 30, 2020, had remaining authorization to purchase
6.15 million shares of its common stock through open market
purchases.
"Continued and unprecedented strength in our DIY business, solid
demand across our residential repaint and new residential segments,
and improving demand in our industrial coatings businesses and
regions drove our strong third quarter results," said Chairman and
Chief Executive Officer, John G.
Morikis. "I am extremely proud of our 61,000 employees, who
continue to demonstrate resiliency and determination while
providing our customers with differentiated solutions. Improving
sales, coupled with favorable customer and product mix, lower input
costs and ongoing continuous improvement efforts, drove strong
double-digit growth in EBITDA and diluted net income per share.
Strong cash flow generation in the quarter enabled us to continue
making strategic investments across the business while returning
over $500 million to our shareholders
in the form of treasury share purchases and dividends, an over 100%
increase compared to the third quarter of 2019.
"In The Americas Group, our residential repaint, DIY, and new
residential market segments delivered strong year-over-year growth,
while our other market segments improved on a sequential basis.
Growth remained strongest in exterior paint while interior paint
continued to improve faster than expected. In Consumer Brands
Group, strong DIY demand from our North American retail partners
throughout the quarter drove our performance. In Performance
Coatings Group, our Packaging division remained our best performer,
while our Coil, Automotive Refinish and Industrial Wood businesses
returned to growth. Recovery in our General Industrial business
remains variable by geography, with Asia and Europe recovering at a faster pace than
North America.
"For the fourth quarter, we anticipate our consolidated net
sales will increase by 3% to 7% compared to last year's fourth
quarter. For the full year 2020, we expect our consolidated net
sales will increase by a low single digit percentage compared to
the full year 2019. Based on sales at these levels, we are
increasing our full year 2020 diluted net income per share guidance
to be in the range of $21.49 to
$21.79 per share compared to
$16.49 per share earned in 2019. Our
updated full year 2020 adjusted diluted net income per share
guidance of $24.00 to $24.30 per share, excluding $2.51 of acquisition-related amortization
expense, compares to $21.12 per share
for full year 2019, excluding 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 third quarter, and its outlook for the
fourth quarter and full year 2020, at 11:00
a.m. EDT on Tuesday, October 27, 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
October 27th 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
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
|
|
Nine Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
September 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
|
|
|
$
|
7.66
|
|
|
|
|
$
|
17.60
|
|
|
$
|
21.49
|
|
|
$
|
21.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
amortization expense
(2)
|
$
|
.83
|
|
$
|
.20
|
|
.63
|
|
|
$
|
2.46
|
|
$
|
.59
|
|
1.87
|
|
|
2.51
|
|
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
|
$
|
8.29
|
|
|
|
|
$
|
19.47
|
|
|
$
|
24.00
|
|
|
$
|
24.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Year Ended
|
|
September 30,
2019
|
|
September 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
|
|
|
$
|
6.16
|
|
|
|
|
$
|
13.82
|
|
|
|
|
$
|
16.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trademark
impairment
|
|
|
|
|
|
|
|
|
$
|
1.31
|
|
$
|
.31
|
|
1.00
|
|
Brazil indirect tax
credit
|
|
|
|
|
|
|
|
|
(.54)
|
|
(.18)
|
|
(.36)
|
|
California litigation
expense provision
reduction
|
$
|
(.37)
|
|
$
|
(.09)
|
|
(.28)
|
|
|
$
|
(.37)
|
|
$
|
(.09)
|
|
(.28)
|
|
|
(.37)
|
|
(.09)
|
|
(.28)
|
|
Tax credit investment
loss
|
|
|
|
|
|
(.79)
|
|
.79
|
|
|
|
(.79)
|
|
.79
|
|
Pension plan
settlement expense
|
|
|
|
|
.35
|
|
.08
|
|
.27
|
|
|
.35
|
|
.08
|
|
.27
|
|
Total other
adjustments
|
(.37)
|
|
(.09)
|
|
(.28)
|
|
|
(.02)
|
|
(.80)
|
|
.78
|
|
|
.75
|
|
(.67)
|
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration costs
(3)
|
.17
|
|
.03
|
|
.14
|
|
|
.42
|
|
.09
|
|
.33
|
|
|
.88
|
|
.19
|
|
.69
|
|
Acquisition-related
amortization expense (2)
|
.82
|
|
.19
|
|
.63
|
|
|
2.47
|
|
.57
|
|
1.90
|
|
|
3.29
|
|
.77
|
|
2.52
|
|
Total
acquisition-related costs
|
$
|
.99
|
|
$
|
.22
|
|
.77
|
|
|
$
|
2.89
|
|
$
|
.66
|
|
2.23
|
|
|
$
|
4.17
|
|
$
|
.96
|
|
3.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
|
$
|
6.65
|
|
|
|
|
$
|
16.83
|
|
|
|
|
$
|
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
|
|
Three
Months
|
|
Nine
Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
March 31,
2020
|
|
June 30,
2020
|
|
September 30,
2020
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
Net income
|
$
|
321.7
|
|
|
$
|
595.9
|
|
|
$
|
705.8
|
|
|
$
|
1,623.4
|
|
Interest
expense
|
86.2
|
|
|
88.1
|
|
|
83.3
|
|
|
257.6
|
|
Income
taxes
|
70.6
|
|
|
151.5
|
|
|
169.8
|
|
|
391.9
|
|
Depreciation
|
66.5
|
|
|
66.1
|
|
|
67.4
|
|
|
200.0
|
|
Amortization
|
78.1
|
|
|
77.4
|
|
|
78.7
|
|
|
234.2
|
|
EBITDA
|
$
|
623.1
|
|
|
$
|
979.0
|
|
|
$
|
1,105.0
|
|
|
$
|
2,707.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
Three
Months
|
|
Nine
Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
March 31,
2019
|
|
June 30,
2019
|
|
September 30,
2019
|
|
September 30,
2019
|
|
|
|
|
|
|
|
|
Net income
|
$
|
245.2
|
|
|
$
|
471.0
|
|
|
$
|
576.5
|
|
|
$
|
1,292.7
|
|
Interest
expense
|
91.0
|
|
|
89.2
|
|
|
85.3
|
|
|
265.5
|
|
Income
taxes
|
53.7
|
|
|
204.7
|
|
|
133.3
|
|
|
391.7
|
|
Depreciation
|
64.7
|
|
|
65.0
|
|
|
65.3
|
|
|
195.0
|
|
Amortization
|
78.8
|
|
|
78.1
|
|
|
77.5
|
|
|
234.4
|
|
EBITDA
|
533.4
|
|
|
908.0
|
|
|
937.9
|
|
|
2,379.3
|
|
California litigation
expense provision
|
|
|
|
|
(34.7)
|
|
|
(34.7)
|
|
Pension plan
settlement expense
|
32.4
|
|
|
|
|
|
|
32.4
|
|
Integration
costs
|
9.3
|
|
|
13.5
|
|
|
16.1
|
|
|
38.9
|
|
Adjusted
EBITDA
|
$
|
575.1
|
|
|
$
|
921.5
|
|
|
$
|
919.3
|
|
|
$
|
2,415.9
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Statements of
Consolidated Income (Unaudited)
|
(millions of
dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,122.2
|
|
|
$
|
4,867.7
|
|
|
$
|
13,872.9
|
|
|
$
|
13,786.4
|
|
Cost of goods
sold
|
|
|
2,666.9
|
|
|
|
2,642.1
|
|
|
|
7,319.0
|
|
|
|
7,644.3
|
|
Gross
profit
|
|
|
2,455.3
|
|
|
|
2,225.6
|
|
|
|
6,553.9
|
|
|
|
6,142.1
|
|
Percent to
net sales
|
|
|
47.9%
|
|
|
|
45.7%
|
|
|
|
47.2%
|
|
|
|
44.6%
|
|
Selling, general and
administrative expenses
|
|
|
1,406.8
|
|
|
|
1,345.2
|
|
|
|
4,005.7
|
|
|
|
3,920.5
|
|
Percent to
net sales
|
|
|
27.5%
|
|
|
|
27.6%
|
|
|
|
28.9%
|
|
|
|
28.4%
|
|
Other general expense
- net
|
|
|
10.5
|
|
|
|
12.0
|
|
|
|
13.1
|
|
|
|
18.7
|
|
Amortization
|
|
|
78.7
|
|
|
|
77.5
|
|
|
|
234.2
|
|
|
|
234.4
|
|
Interest
expense
|
|
|
83.3
|
|
|
|
85.3
|
|
|
|
257.6
|
|
|
|
265.5
|
|
Interest and net
investment income
|
|
|
(1.4)
|
|
|
|
(0.6)
|
|
|
|
(2.6)
|
|
|
|
(1.6)
|
|
California litigation
expense
|
|
|
—
|
|
|
|
(34.7)
|
|
|
|
—
|
|
|
|
(34.7)
|
|
Other expense -
net
|
|
|
1.8
|
|
|
|
31.1
|
|
|
|
30.6
|
|
|
|
54.9
|
|
Income before income
taxes
|
|
|
875.6
|
|
|
|
709.8
|
|
|
|
2,015.3
|
|
|
|
1,684.4
|
|
Income
taxes
|
|
|
169.8
|
|
|
|
133.3
|
|
|
|
391.9
|
|
|
|
391.7
|
|
Net income
|
|
$
|
705.8
|
|
|
$
|
576.5
|
|
|
$
|
1,623.4
|
|
|
$
|
1,292.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
7.80
|
|
|
$
|
6.28
|
|
|
$
|
17.90
|
|
|
$
|
14.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
7.66
|
|
|
$
|
6.16
|
|
|
$
|
17.60
|
|
|
$
|
13.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
90,537,314
|
|
|
|
91,823,573
|
|
|
|
90,694,317
|
|
|
|
91,850,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
92,110,229
|
|
|
|
93,604,260
|
|
|
|
92,257,788
|
|
|
|
93,510,104
|
|
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
September 30:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
2,978.3
|
|
|
$
|
747.4
|
|
|
$
|
2,898.2
|
|
|
$
|
663.6
|
|
Consumer Brands
Group
|
|
838.1
|
|
|
|
198.3
|
|
|
|
678.4
|
|
|
|
114.9
|
|
Performance Coatings
Group
|
|
1,305.3
|
|
|
|
155.3
|
|
|
|
1,290.2
|
|
|
|
137.5
|
|
Administrative
|
|
0.5
|
|
|
|
(225.4)
|
|
|
|
0.9
|
|
|
|
(206.2)
|
|
Consolidated
totals
|
$
|
5,122.2
|
|
|
$
|
875.6
|
|
|
$
|
4,867.7
|
|
|
$
|
709.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
7,807.5
|
|
|
$
|
1,735.4
|
|
|
$
|
7,809.1
|
|
|
$
|
1,607.1
|
|
Consumer Brands
Group
|
|
2,440.6
|
|
|
|
519.2
|
|
|
|
2,137.4
|
|
|
|
343.5
|
|
Performance Coatings
Group
|
|
3,622.7
|
|
|
|
366.4
|
|
|
|
3,838.0
|
|
|
|
386.5
|
|
Administrative
|
|
2.1
|
|
|
|
(605.7)
|
|
|
|
1.9
|
|
|
|
(652.7)
|
|
Consolidated
totals
|
$
|
13,872.9
|
|
|
$
|
2,015.3
|
|
|
$
|
13,786.4
|
|
|
$
|
1,684.4
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Consolidated
Financial Position (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash
|
$
|
619.9
|
|
|
$
|
189.6
|
|
|
Accounts receivable,
net
|
|
2,454.5
|
|
|
|
2,479.0
|
|
|
Inventories
|
|
1,672.8
|
|
|
|
1,825.0
|
|
|
Other current
assets
|
|
428.4
|
|
|
|
414.1
|
|
|
Short-term
borrowings
|
|
(0.2)
|
|
|
|
(435.7)
|
|
|
Current portion of
long-term debt
|
|
(24.1)
|
|
|
|
(429.6)
|
|
|
Current portion of
operating lease liabilities
|
|
(379.5)
|
|
|
|
(364.4)
|
|
|
Accounts
payable
|
|
(2,056.2)
|
|
|
|
(2,028.4)
|
|
|
Other current
liabilities
|
|
(1,898.3)
|
|
|
|
(1,607.7)
|
|
|
Working
capital
|
|
817.3
|
|
|
|
41.9
|
|
|
Property, plant and
equipment, net
|
|
1,780.0
|
|
|
|
1,798.3
|
|
|
Goodwill and
intangibles
|
|
11,504.3
|
|
|
|
11,848.0
|
|
|
Operating lease
right-of-use assets
|
|
1,738.6
|
|
|
|
1,659.0
|
|
|
Other non-current
assets
|
|
611.2
|
|
|
|
651.3
|
|
|
Long-term
debt
|
|
(8,266.9)
|
|
|
|
(8,043.0)
|
|
|
Postretirement
benefits other than pensions
|
|
(262.3)
|
|
|
|
(261.0)
|
|
|
Deferred income
taxes
|
|
(956.7)
|
|
|
|
(1,096.9)
|
|
|
Long-term operating
lease liabilities
|
|
(1,421.3)
|
|
|
|
(1,352.2)
|
|
|
Other long-term
liabilities
|
|
(1,336.9)
|
|
|
|
(1,222.5)
|
|
|
Shareholders'
equity
|
$
|
4,207.3
|
|
|
$
|
4,022.9
|
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Selected
Information (Unaudited)
|
(millions of
dollars, except store count data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Depreciation
|
$
|
67.4
|
|
|
$
|
65.3
|
|
|
$
|
200.0
|
|
|
$
|
195.0
|
|
Capital
expenditures
|
|
51.5
|
|
|
|
96.9
|
|
|
|
193.8
|
|
|
|
224.8
|
|
Cash
dividends
|
|
122.2
|
|
|
|
105.1
|
|
|
|
367.8
|
|
|
|
314.9
|
|
Amortization of
intangibles
|
|
78.7
|
|
|
|
77.5
|
|
|
|
234.2
|
|
|
|
234.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other general expense - net:
|
|
|
|
|
|
|
Provision for
environmental related matters - net
|
$
|
10.1
|
|
|
$
|
10.6
|
|
|
$
|
20.8
|
|
|
$
|
17.9
|
|
(Gain) loss on sale or
disposition of assets
|
|
0.4
|
|
|
|
1.4
|
|
|
|
(7.7)
|
|
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other expense - net:
|
|
|
|
|
|
|
Domestic pension plan
settlement expense
|
|
|
|
|
|
|
|
|
|
$
|
32.4
|
|
Loss on extinguishment
of debt
|
|
|
|
$
|
14.8
|
|
|
$
|
21.3
|
|
|
|
14.8
|
|
Investment and royalty
income
|
$
|
(3.1)
|
|
|
|
(2.2)
|
|
|
|
(5.7)
|
|
|
|
(7.8)
|
|
Net expense from
banking activities
|
|
2.6
|
|
|
|
2.6
|
|
|
|
7.8
|
|
|
|
8.0
|
|
Foreign currency
transaction related (gains) losses
|
|
(0.1)
|
|
|
|
16.4
|
|
|
|
10.3
|
|
|
|
12.5
|
|
Other
(1)
|
|
2.4
|
|
|
|
(0.5)
|
|
|
|
(3.1)
|
|
|
|
(5.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
transfers:
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Brands Group
|
$
|
1,024.3
|
|
|
$
|
995.2
|
|
|
$
|
2,770.0
|
|
|
$
|
2,769.0
|
|
Performance Coatings Group
|
|
28.7
|
|
|
|
29.5
|
|
|
|
105.0
|
|
|
|
88.3
|
|
The Americas Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Count
Data:
|
|
|
|
|
|
|
|
|
|
|
|
The Americas Group -
net new stores
|
|
17
|
|
|
|
11
|
|
|
|
|
|
|
31
|
|
The Americas Group -
total stores
|
|
4,758
|
|
|
|
4,727
|
|
|
|
4,758
|
|
|
|
4,727
|
|
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