CLEVELAND, Oct. 22, 2019
/PRNewswire/ --
- Consolidated net sales increased 2.9% in the quarter to
$4.87 billion
- Net sales from stores in U.S. and Canada open more than twelve calendar months
increased 8.1% in the quarter
- Diluted net income per share increased to $6.16 per share in the quarter compared to
$3.72 per share in the third quarter
2018
-
- Third quarter 2019 includes a benefit from the resolution of
the California public nuisance
litigation, which increased earnings per share $.28, and charges for acquisition-related costs
of $.77 per share; third
quarter 2018 included charges for the California litigation and acquisition-related
costs of $1.09 and $.87 per share, respectively
- Excluding acquisition-related costs and other non-operating
expenses, diluted net income per share increased to $6.65 per share in the quarter versus
$5.68 per share in the third quarter
2018 on a comparable basis
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) increased 11.8% in the quarter to
$919.3 million, or 18.9% of
sales
- Increasing FY19 adjusted EPS guidance to $20.90 to $21.30
per share, excluding acquisition-related costs and other
non-operating expenses, versus $18.53
per share on a comparable basis in FY18
The Sherwin-Williams Company (NYSE: SHW) announced its financial
results for the third quarter ended September 30, 2019.
Compared to the same period in 2018, consolidated net sales
increased $136.2 million, or 2.9%, to
$4.87 billion in the quarter and
increased $316.1 million, or 2.3%, to
$13.79 billion in nine months. The
increase in the quarter was due primarily to higher paint sales
volume in North American stores and selling price increases,
partially offset by demand softness in some end markets outside the
U.S. and unfavorable currency translation rate changes. Currency
translation rate changes decreased consolidated net sales by 0.9%
in the third quarter and 1.5% in the first nine months,
respectively. Diluted net income per share increased to
$6.16 per share in the third quarter
compared to $3.72 per share in the
third quarter 2018. Third quarter 2019 includes a benefit from the
resolution of the California
litigation, which increased earnings per share $.28, and a charge for acquisition-related costs
of $.77 per share. Currency
translation rate changes decreased diluted net income per common
share in the quarter by $.11 per
share. Third quarter 2018 diluted net income per share included
charges for acquisition-related costs and the California litigation of $.87 and $1.09 per
share, respectively. Diluted net income per share increased to
$13.82 per share in the first nine
months compared to $10.59 per share
in the same period in 2018. The first nine months of 2019 includes
charges for acquisition-related costs of $2.23 per share, a tax credit investment loss of
$.79 per share, and a pension
settlement expense of $.27 per share,
partially offset by a benefit from the resolution of the
California litigation of
$.28 per share. Currency translation
rate changes decreased diluted net income per common share in the
first nine months of 2019 by $.21 per
share. The first nine months of 2018 included charges of
$3.05, $1.09 and $.25 per
share for acquisition-related costs, the California litigation and environmental
expense provisions, respectively. During the third quarter of 2019,
the Company reduced its accrual for the California litigation by $59.6 million to $76.7 million as a result of the final court
approved agreement to resolve the litigation and the initial
payment of $25.0 million to the
plaintiffs in accordance with the agreement.
Net sales in The Americas Group increased 8.7% to $2.90 billion in the quarter and increased 5.9%
to $7.81 billion in nine months due
primarily to higher paint sales across all end markets in North
American stores and selling price increases. Net sales from stores
in the U.S. and Canada open for
more than twelve calendar months increased 8.1% in the quarter and
increased 5.5% in nine months over last year's comparable periods.
Segment profit increased $85.9
million to $663.7 million in
the quarter and increased $122.1
million to $1.61 billion in
nine months due primarily to higher paint sales volume and selling
price increases. Segment profit as a percent of net sales increased
in the quarter to 22.9% from 21.7% in the third quarter last year.
In the first nine months, segment profit as a percent of net sales
increased to 20.6% compared to 20.1% in the same period last
year.
Net sales of the Consumer Brands Group decreased 11.9% to
$678.5 million in the quarter and
decreased 3.0% to $2.14 billion in
nine months. The decrease in the quarter was due primarily to
comparisons to load-in sales for a new customer program in 2018,
the divestiture of the Guardsman furniture protection business in
the third quarter of 2018 and softer sales outside of North America in some end markets, partially
offset by selling price increases and higher volume sales to most
of the Group's retail customers. The decrease in the nine
months was due primarily to the divestiture of the Guardsman
furniture protection business in the third quarter of 2018, softer
sales outside of North America in
some end markets and unfavorable currency translation rate changes,
partially offset by selling price increases and higher volume sales
related to a new customer program. Currency translation rate
changes decreased Group net sales by 1.3% in the nine months.
Segment profit increased to $114.9
million in the quarter from $83.9
million in the third quarter last year due primarily to
improved supply chain efficiencies and good cost control, partially
offset by incremental investments in the new customer program.
Segment profit as a percent of net external sales increased in the
quarter to 16.9% from 10.9% in the third quarter last year.
Acquisition-related amortization expense in the quarter was
$22.6 million compared to
$26.0 million in the third quarter
last year. In the first nine months, segment profit increased to
$343.5 million from $249.1 million in the comparable period last year
primarily due to improved supply chain efficiencies, moderating raw
material costs, good cost control and reduced impacts of
acquisition-related amortization expense, partially offset by
unfavorable currency translation rate changes. Segment profit as a
percent of net external sales increased in the nine months to 16.1%
from 11.3% in the same period last year. Acquisition-related
amortization expense through nine months was $68.0 million compared to $86.4 million in the same period last year.
Currency translation rate changes decreased segment profit
$3.3 million in nine months.
The Performance Coatings Group's net sales decreased 0.3% to
$1.29 billion in the quarter and
decreased 1.4% to $3.84 billion in
nine months. The decrease in both the quarter and nine months was
due primarily to softer sales outside of North America in some end markets and
unfavorable currency translation rate changes, partially offset by
selling price increases. Currency translation rate changes
decreased Group net sales by 1.6% and 2.7% in the quarter and nine
months, respectively. Segment profit increased in the quarter to
$137.4 million from $104.9 million in the third quarter last year due
primarily to moderating raw material costs and good cost control.
Segment profit as a percent of net external sales increased in the
quarter to 10.7% from 8.1% in the third quarter last year.
Acquisition-related amortization expense in the quarter was
$54.3 million compared to
$55.4 million in the third quarter
last year. Segment profit increased in the first nine months to
$386.5 million from $339.8 million in the same period last year due
primarily to moderating raw material costs and good cost control,
partially offset by unfavorable currency translation rate changes.
Currency translation rate changes decreased segment profit
$10.5 million in the nine months.
Segment profit as a percent of net external sales increased in the
first nine months to 10.1% from 8.7% in the same period last year.
Acquisition-related amortization expense for the first nine months
was $162.4 million compared to
$160.6 million in the same period
last year.
Net operating cash improved $230.2
million to $1.66 billion in
the nine months. This strong cash generation allowed us to return
cash of approximately $892.6 million
to our shareholders in the form of dividends and share repurchases.
The Company purchased 1,325,000 shares of its common stock in the
first nine months, and at September 30, 2019, the Company had
remaining authorization to purchase 8.80 million shares of its
common stock through open market purchases.
Commenting on the third quarter, John G.
Morikis, Chairman and Chief Executive Officer, said,
"Sherwin-Williams delivered strong results in the quarter as
adjusted earnings per share increased 17.1% year-over-year to
$6.65. Our performance in the quarter
was driven by continued strength in North American architectural
paint markets, which offset choppiness in some industrial end
markets. U.S. and Canada
same store sales growth was 8.1% as our pro painting customers
continued to report strong demand. As a result of this strong
volume and operating efficiencies, consolidated gross margin
expanded over 300 basis points to 45.7%. Adjusted EBITDA
margin in the quarter improved 150 basis points to 18.9% compared
to the prior year.
"For the second consecutive quarter, all three operating
segments increased segment profit and margin compared to the same
period last year. In The Americas Group, our North American paint
stores generated strong growth in all regions and all customer end
markets, led by double digit growth in residential repaint. With
the strong volume, the team delivered incremental operating margin
of approximately 37%, and we have opened 31 net new stores year to
date. In the Consumer Brands Group, sales decreased more than
expected due primarily to softness in some international markets.
In North America, we continued to
strengthen our relationships with our largest retail partners. The
team has done a nice job of controlling selling expenses, while
continuing to realize synergies and improving year over year supply
chain costs. The Performance Coatings Group was impacted by
slowing industrial demand in some end markets, leading to slightly
lower sales in the quarter. Despite the softer than expected top
line, the team remained focused on controlling selling expenses,
and with moderating raw material costs, adjusted segment profit and
margin increased year over year.
"For the fourth quarter, we anticipate our consolidated net
sales will increase by a low single digit percentage compared to
last year's fourth quarter. For the full year 2019, we expect our
consolidated net sales will increase by a low single digit
percentage compared to the full year 2018. We are updating our full
year 2019 diluted net income per share guidance to be in the range
of $17.07 to $17.47 per share. Diluted net income per share in
2018 was $11.67 per share, including
a charge of $4.15 per share for
acquisition-related costs and a charge of $2.71 per share for non-operating expenses. We
are increasing our full year 2019 adjusted diluted net income per
share guidance to be in the range of $20.90 to $21.30
per share, excluding charges for acquisition-related costs and
non-operating expenses, compared to $18.53 per share for the full year 2018 on a
comparable basis."
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 2019, at 11:00
a.m. EDT on Tuesday, October 22, 2019. 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, www.sherwin.com, click on About Us, choose Investor
Relations, then select Press Releases and click on the webcast icon
following the reference to the October
22nd release. The webcast will also be available at Issuer
Direct's Investor Calendar website, www.investorcalendar.com. An
archived replay of the live webcast will be available at
www.sherwin.com beginning approximately two hours after the call
ends and will be available until November 8,
2019 at 5:00 p.m. EST.
Founded in 1866, The Sherwin-Williams Company is a global leader
in the manufacture, development, distribution, and sale of paints,
coatings and related products to professional, industrial,
commercial, and retail customers. 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.
Regulation G Reconciliation
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 Valspar acquisition-related costs and other
non-operating expenses. 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.
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Nine
Months
|
|
Year Ended
|
|
Ended
|
|
Ended
|
|
December 31,
2019
|
|
September
30,
|
|
September
30,
|
|
(guidance)
|
|
2019
|
|
2019
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
|
6.16
|
|
|
$
|
13.82
|
|
|
$
|
17.07
|
|
|
$
|
17.47
|
|
|
|
|
|
|
|
|
|
California litigation
expense provision reduction
|
(.28)
|
|
|
(.28)
|
|
|
(.28)
|
|
|
(.28)
|
|
Tax credit investment
loss
|
|
|
.79
|
|
|
.79
|
|
|
.79
|
|
Pension plan
settlement expense
|
|
|
.27
|
|
|
.27
|
|
|
.27
|
|
Other non-operating
expenses
|
(.28)
|
|
|
.78
|
|
|
.78
|
|
|
.78
|
|
|
|
|
|
|
|
|
|
Integration costs
(1)
|
.14
|
|
|
.33
|
|
|
.51
|
|
|
.51
|
|
Acquisition-related
amortization expense (2)
|
.63
|
|
|
1.90
|
|
|
2.54
|
|
|
2.54
|
|
Total
acquisition-related costs
|
.77
|
|
|
2.23
|
|
|
3.05
|
|
|
3.05
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
$
|
6.65
|
|
|
$
|
16.83
|
|
|
$
|
20.90
|
|
|
$
|
21.30
|
|
|
Three
Months
|
|
Nine
Months
|
|
Year
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
September
30,
|
|
September
30,
|
|
December
31,
|
|
|
2018
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
|
3.72
|
|
|
$
|
10.59
|
|
|
$
|
11.67
|
|
|
|
|
|
|
|
|
|
California litigation
expense
|
1.09
|
|
|
1.09
|
|
|
1.09
|
|
|
Environmental expense
provision
|
|
|
.25
|
|
|
1.32
|
|
|
Pension plan
settlement expense
|
|
|
|
|
.30
|
|
|
Other non-operating
expenses
|
1.09
|
|
|
1.34
|
|
|
2.71
|
|
|
|
|
|
|
|
|
|
Integration costs
(1)
|
.22
|
|
|
1.08
|
|
|
1.55
|
|
|
Acquisition-related
amortization expense (2)
|
.65
|
|
|
1.97
|
|
|
2.60
|
|
|
Total
acquisition-related costs
|
.87
|
|
|
3.05
|
|
|
4.15
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
$
|
5.68
|
|
|
$
|
14.98
|
|
|
$
|
18.53
|
|
|
|
|
|
|
|
|
|
(1) 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.
|
|
|
(2)
Acquisition-related amortization expense consists primarily of the
amortization of intangible assets related to the Valspar
acquisition and is included in Amortization.
|
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). 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 table reconciles net income
computed in accordance with U.S. GAAP to EBITDA.
Thousands of
dollars
|
|
|
|
|
|
|
|
|
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
|
$
|
245,237
|
|
|
$
|
471,003
|
|
|
$
|
576,438
|
|
|
$
|
1,292,678
|
|
Interest
expense
|
90,994
|
|
|
89,198
|
|
|
85,282
|
|
|
265,474
|
|
Income
taxes
|
53,617
|
|
|
204,698
|
|
|
133,395
|
|
|
391,710
|
|
Depreciation
|
64,716
|
|
|
65,032
|
|
|
65,209
|
|
|
194,957
|
|
Amortization
|
78,771
|
|
|
78,081
|
|
|
77,548
|
|
|
234,400
|
|
EBITDA
|
533,335
|
|
|
908,012
|
|
|
937,872
|
|
|
2,379,219
|
|
California litigation
expense provision reduction
|
|
|
|
|
(34,667)
|
|
|
(34,667)
|
|
Pension plan
settlement expense
|
32,410
|
|
|
|
|
|
|
32,410
|
|
Integration
costs
|
9,345
|
|
|
13,519
|
|
|
16,071
|
|
|
38,935
|
|
Adjusted
EBITDA
|
$
|
575,090
|
|
|
$
|
921,531
|
|
|
$
|
919,276
|
|
|
$
|
2,415,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
Three
Months
|
|
Nine
Months
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
March 31,
2018
|
|
June 30,
2018
|
|
September 30,
2018
|
|
September 30,
2018
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
|
250,127
|
|
|
$
|
403,604
|
|
|
$
|
354,027
|
|
|
$
|
1,007,758
|
|
Interest
expense
|
91,547
|
|
|
93,507
|
|
|
92,281
|
|
|
277,335
|
|
Income
taxes
|
53,459
|
|
|
134,482
|
|
|
61,926
|
|
|
249,867
|
|
Depreciation
|
71,591
|
|
|
72,542
|
|
|
67,381
|
|
|
211,514
|
|
Amortization
|
85,049
|
|
|
73,893
|
|
|
80,077
|
|
|
239,019
|
|
EBITDA from
continuing operations
|
551,773
|
|
|
778,028
|
|
|
655,692
|
|
|
1,985,493
|
|
California litigation
expense provision
|
|
|
|
|
136,333
|
|
|
136,333
|
|
Environmental expense
provision
|
|
|
32,018
|
|
|
|
|
32,018
|
|
Integration
costs
|
30,423
|
|
|
39,273
|
|
|
30,177
|
|
|
99,873
|
|
Adjusted
EBITDA
|
$
|
582,196
|
|
|
$
|
849,319
|
|
|
$
|
822,202
|
|
|
$
|
2,253,717
|
|
|
|
|
|
|
|
|
|
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 conditions; the Company's ability
to successfully integrate past and future acquisitions into its
existing operations, including Valspar, as well as the performance
of the businesses acquired; risks inherent in the achievement of
additional anticipated cost synergies resulting from the
acquisition of Valspar and the timing thereof; 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;
unusual weather conditions; and other risks, uncertainties and
factors described from time to time in the Company's reports filed
with the Securities and Exchange Commission. 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.
The
Sherwin-Williams Company and Subsidiaries
|
|
Statements of
Consolidated Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousands of dollars,
except per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,867,650
|
|
$
|
4,731,470
|
|
$
|
13,786,371
|
|
$
|
13,470,272
|
|
Cost of goods
sold
|
|
|
2,642,096
|
|
|
2,721,066
|
|
|
7,644,305
|
|
|
7,734,393
|
|
Gross
profit
|
|
|
2,225,554
|
|
|
2,010,404
|
|
|
6,142,066
|
|
|
5,735,879
|
|
Percent to
net sales
|
|
|
45.7%
|
|
|
42.5%
|
|
|
44.6%
|
|
|
42.6%
|
|
Selling, general and
administrative expenses
|
|
|
1,345,171
|
|
|
1,273,066
|
|
|
3,920,476
|
|
|
3,795,492
|
|
Percent to
net sales
|
|
|
27.6%
|
|
|
26.9%
|
|
|
28.4%
|
|
|
28.2%
|
|
Other general expense
- net
|
|
|
12,032
|
|
|
11,526
|
|
|
18,696
|
|
|
41,495
|
|
Amortization
|
|
|
77,548
|
|
|
80,077
|
|
|
234,400
|
|
|
239,019
|
|
Interest
expense
|
|
|
85,282
|
|
|
92,281
|
|
|
265,474
|
|
|
277,335
|
|
Interest and net
investment income
|
|
|
(637)
|
|
|
(555)
|
|
|
(1,588)
|
|
|
(2,732)
|
|
California litigation
expense
|
|
|
(34,667)
|
|
|
136,333
|
|
|
(34,667)
|
|
|
136,333
|
|
Other expense
(income) - net
|
|
|
30,992
|
|
|
1,723
|
|
|
54,887
|
|
|
(8,688)
|
|
Income before income
taxes
|
|
709,833
|
|
|
415,953
|
|
|
1,684,388
|
|
|
1,257,625
|
|
Income
taxes
|
|
|
133,395
|
|
|
61,926
|
|
|
391,710
|
|
|
249,867
|
|
Net income
|
|
$
|
576,438
|
|
$
|
354,027
|
|
$
|
1,292,678
|
|
$
|
1,007,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
|
$
|
6.28
|
|
$
|
3.80
|
|
$
|
14.07
|
|
$
|
10.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
- diluted
|
|
$
|
6.16
|
|
$
|
3.72
|
|
$
|
13.82
|
|
$
|
10.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding - basic
|
|
|
91,823,573
|
|
|
93,099,714
|
|
|
91,850,565
|
|
|
93,121,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares and
equivalents outstanding - diluted
|
|
93,604,260
|
|
|
95,135,257
|
|
|
93,510,104
|
|
|
95,170,768
|
|
The
Sherwin-Williams Company and Subsidiaries
|
|
Business
Segments (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousands of
dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
Net
|
|
Segment
|
|
Net
|
|
Segment
|
|
|
External
|
|
Profit
|
|
External
|
|
Profit
|
|
|
Sales
|
|
(Loss)
|
|
Sales
|
|
(Loss)
|
|
Three Months Ended
September 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
2,898,158
|
|
|
$
|
663,671
|
|
|
$
|
2,665,663
|
|
|
$
|
577,738
|
|
|
Consumer Brands
Group
|
|
678,473
|
|
|
|
114,891
|
|
|
|
770,543
|
|
|
|
83,941
|
|
|
Performance Coatings
Group
|
|
1,290,247
|
|
|
|
137,432
|
|
|
|
1,294,579
|
|
|
|
104,868
|
|
|
Administrative
|
|
772
|
|
|
|
(206,161)
|
|
|
|
685
|
|
|
|
(350,594)
|
|
|
Consolidated
totals
|
$
|
4,867,650
|
|
|
$
|
709,833
|
|
|
$
|
4,731,470
|
|
|
$
|
415,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
The Americas
Group
|
$
|
7,809,059
|
|
|
$
|
1,607,143
|
|
|
$
|
7,371,135
|
|
|
$
|
1,485,027
|
|
|
Consumer Brands
Group
|
|
2,137,447
|
|
|
|
343,482
|
|
|
|
2,204,668
|
|
|
|
249,072
|
|
|
Performance Coatings
Group
|
|
3,838,002
|
|
|
|
386,452
|
|
|
|
3,891,678
|
|
|
|
339,828
|
|
|
Administrative
|
|
1,863
|
|
|
|
(652,689)
|
|
|
|
2,791
|
|
|
|
(816,302)
|
|
|
Consolidated
totals
|
$
|
13,786,371
|
|
|
$
|
1,684,388
|
|
|
$
|
13,470,272
|
|
|
$
|
1,257,625
|
|
|
The
Sherwin-Williams Company and Subsidiaries
|
Consolidated
Financial Position (Unaudited)
|
Thousands of
dollars
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash
|
$
|
189,645
|
|
|
$
|
181,511
|
|
|
Accounts
receivable
|
|
2,479,043
|
|
|
|
2,584,280
|
|
|
Inventories
|
|
1,824,969
|
|
|
|
1,802,418
|
|
|
Other current
assets
|
|
414,082
|
|
|
|
410,913
|
|
|
Short-term
borrowings
|
|
(435,699)
|
|
|
|
(650,134)
|
|
|
Current portion of
long-term debt
|
|
(429,569)
|
|
|
|
(310,561)
|
|
|
Current portion of
operating lease liabilities
|
|
(364,379)
|
|
|
|
|
|
Accounts
payable
|
|
(2,028,402)
|
|
|
|
(2,165,724)
|
|
|
Other current
liabilities
|
|
(1,607,741)
|
|
|
|
(1,715,646)
|
|
|
Working
capital
|
|
41,949
|
|
|
|
137,057
|
|
|
Net property, plant
and equipment
|
|
1,798,301
|
|
|
|
1,766,354
|
|
|
Deferred pension
assets
|
|
33,468
|
|
|
|
305,979
|
|
|
Goodwill and
intangibles
|
|
11,847,956
|
|
|
|
12,253,184
|
|
|
Operating lease
right-of-use assets
|
|
1,659,010
|
|
|
|
|
|
Other non-current
assets
|
|
617,865
|
|
|
|
617,147
|
|
|
Long-term
debt
|
|
(8,043,030)
|
|
|
|
(8,710,831)
|
|
|
Postretirement
benefits other than pensions
|
|
(260,968)
|
|
|
|
(277,857)
|
|
|
Deferred income
taxes
|
|
(1,096,854)
|
|
|
|
(1,356,566)
|
|
|
Long-term operating
lease liabilities
|
|
(1,352,246)
|
|
|
|
|
|
Other long-term
liabilities
|
|
(1,222,591)
|
|
|
|
(803,942)
|
|
|
Shareholders'
equity
|
$
|
4,022,860
|
|
|
$
|
3,930,525
|
|
|
Selected
Information (Unaudited)
|
|
Thousands of
dollars
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
The Americas Group -
net new stores
|
|
11
|
|
|
|
21
|
|
|
|
31
|
|
|
|
43
|
|
|
The Americas Group -
total stores
|
|
4,727
|
|
|
|
4,663
|
|
|
|
4,727
|
|
|
|
4,663
|
|
|
Performance Coatings
Group - net new branches
|
|
|
|
|
(3)
|
|
|
|
(1)
|
|
|
|
(6)
|
|
|
Performance Coatings
Group - total branches
|
|
281
|
|
|
|
284
|
|
|
|
281
|
|
|
|
284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
|
65,209
|
|
|
$
|
67,381
|
|
|
$
|
194,957
|
|
|
$
|
211,514
|
|
|
Capital
expenditures
|
|
96,946
|
|
|
|
64,358
|
|
|
|
224,825
|
|
|
|
166,184
|
|
|
Cash
dividends
|
|
105,102
|
|
|
|
80,898
|
|
|
|
314,859
|
|
|
|
242,539
|
|
|
Amortization of
intangibles
|
|
77,548
|
|
|
|
80,077
|
|
|
|
234,400
|
|
|
|
239,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other general expense - net:
|
|
|
|
|
|
|
|
Provision for
environmental related matters - net
|
|
10,602
|
|
|
|
2,299
|
|
|
|
17,874
|
|
|
|
34,317
|
|
|
Loss on sale or
disposition of assets
|
|
1,430
|
|
|
|
9,227
|
|
|
|
822
|
|
|
|
7,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
components of Other expense (income) - net:
|
|
|
|
|
|
|
|
Pension plan
settlement expense
|
|
|
|
|
|
|
|
32,410
|
|
|
|
|
|
Extinguishment of
Senior Notes expense
|
|
14,754
|
|
|
|
|
|
|
14,754
|
|
|
|
|
|
Dividend and royalty
income
|
|
(2,253)
|
|
|
|
(2,995)
|
|
|
|
(7,830)
|
|
|
|
(5,967)
|
|
|
Expense from banking
activities
|
|
2,622
|
|
|
|
2,694
|
|
|
|
7,973
|
|
|
|
7,380
|
|
|
Foreign currency
transaction related losses
|
|
16,394
|
|
|
|
6,157
|
|
|
|
12,458
|
|
|
|
9,321
|
|
|
Other
(1)
|
|
(525)
|
|
|
|
(4,133)
|
|
|
|
(4,878)
|
|
|
|
(19,422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Brands Group
|
|
995,115
|
|
|
|
936,281
|
|
|
|
2,768,947
|
|
|
|
2,657,614
|
|
|
Performance Coatings Group
|
|
29,495
|
|
|
|
4,474
|
|
|
|
88,331
|
|
|
|
16,888
|
|
|
The Americas Group
|
|
(5)
|
|
|
|
233
|
|
|
|
1
|
|
|
|
506
|
|
|
Administrative
|
|
3,317
|
|
|
|
3,390
|
|
|
|
9,655
|
|
|
|
9,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consists of
items of revenue, gains, expenses and losses unrelated to the
primary business purpose of the Company. No items are individually
significant.
|
Investor Relations Contacts:
Jim Jaye
Senior Vice President – Investor Relations & Corporate
Communications
Sherwin-Williams
Direct: 216.515.8682
james.r.jaye@sherwin.com
Vice President – Investor Relations
Sherwin-Williams
Direct: 216.566.2766
eric.r.swanson@sherwin.com
Media Contacts:
Julie
Young
Vice President – Global Corporate Communications
Sherwin-Williams
Direct: 216.515.8682
julie.s.young@sherwin.com
Mike Conway
Director – Corporate Communications and Investor Relations
Sherwin-Williams
Direct: 216.515.4393
mike.conway@sherwin.com
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SOURCE The Sherwin-Williams Company