CLEVELAND, June 8, 2021 /PRNewswire/ -- The
Sherwin-Williams Company (NYSE: SHW) today increased its net sales
guidance for the second quarter 2021 and its net sales and diluted
net income per share guidance for the full year 2021.
SUMMARY
- Increasing second quarter 2021 consolidated net sales guidance
to be up a high-teens percentage over second quarter 2020
- Increasing full year 2021 consolidated net sales guidance to be
up a high-single to low-double-digit percentage over full year
2020
- Increasing full year 2021 diluted net income per share guidance
to be in the range of $8.01 to
$8.31 per share, including an
estimated $0.80 per share for
acquisition-related amortization expense and a loss of $0.34 per share on the Wattyl divestiture
CEO REMARKS
"We outperformed expectations in the first quarter, and sales in
The Americas Group and Performance Coatings Group have been
stronger than expected in the second quarter," said Chairman,
President and Chief Executive Officer, John
G. Morikis. "Demand remains strong in our
architectural end markets, led by residential repaint and new
residential, with continued improvement in commercial and property
management. Demand is also strong on the industrial side of our
business and is recovering faster than expected. At the same time,
the raw material inflation we experienced in the first quarter has
continued in the second quarter. We have great confidence we
will offset these higher costs, and we are implementing additional
price increases across all our segments, including a 7%
August 1st price increase in The
Americas Group. We now expect our full year 2021 adjusted
diluted net income per share to increase 13.6% at the midpoint of
the range compared to the prior year."
UPDATED GUIDANCE
Second Quarter
2021
|
Revised
Guidance
(June 8, 2021)
|
Previous
Guidance
(April 27,
2021)
|
|
|
|
Sales
|
|
|
The Americas
Group
|
Up low to
mid-twenties %
|
Up mid to high-teens
%
|
Consumer Brands
Group
|
Down low to
mid-twenties %
|
Down
low-double-digits to mid-teens %
|
Performance Coatings
Group
|
Up mid to
high-thirties %
|
Up high-twenties
%
|
Consolidated
|
Up high-teens
%
|
Up mid to
high-teens %
|
|
|
|
Full Year
2021
|
Revised
Guidance
(June 8, 2021)
|
Previous
Guidance
(April 27,
2021)
|
|
|
|
Sales
|
|
|
The Americas
Group
|
Up low-double-digit
%
|
Up mid to
high-single-digit %
|
Consumer Brands
Group
|
Down low to
mid-single-digit %
|
Up or down
low-single-digit %
|
Performance Coatings
Group
|
Up mid to high-teens
%
|
Up mid-single-digit
%
|
Consolidated
|
Up high-single to
low-double-digit %
|
Up mid to
high-single-digit %
|
|
|
|
Earnings Per
Share
|
|
|
Diluted net income
per share
|
$8.01 to
$8.31
|
$7.66 to
$7.93
|
Loss on
divestiture
|
$0.34
|
$0.34
|
Acquisition-related
amortization expense
|
$0.80
|
$0.80
|
Adjusted diluted
net income per share
|
$9.15 to
$9.45
|
$8.80 to
$9.07
|
The Company is scheduled to release second quarter 2021
financial results on July 27,
2021.
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. The Company 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 5,000
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
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@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 the loss on
the divestiture of Wattyl, and Valspar acquisition-related
amortization expense. 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.
|
Revised
Guidance
(June 8,
2021)
(After-Tax)
|
|
Previous
Guidance
(April 27,
2021)
(After-Tax)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
2021
|
|
Year Ended
December 31,
2021
|
|
Year Ended
December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
(After-Tax)
|
Diluted net income
per share
|
$8.01
|
|
$8.31
|
|
$7.66
|
|
$7.93
|
|
$7.36
|
Loss on
divestiture
|
0.34
|
|
0.34
|
|
0.34
|
|
0.34
|
|
|
Acquisition-related
amortization expense (1)
|
0.80
|
|
0.80
|
|
0.80
|
|
0.80
|
|
0.83
|
Adjusted diluted net
income per share
|
$9.15
|
|
$9.45
|
|
$8.80
|
|
$9.07
|
|
$8.19
|
(1)
|
Acquisition-related
amortization expense consists primarily of the amortization of
intangible assets related to the Valspar acquisition and is
included in Amortization.
|
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SOURCE The Sherwin-Williams Company