CLEVELAND, Jan. 15, 2019 /PRNewswire/ --
- 4Q18 consolidated net sales increased approximately 2%
compared to 4Q17
- FY18 diluted net income per share expected to be
approximately $11.15 per
share
-
- Adjusted FY18 diluted net income per share expected to be
approximately $18.53, excluding
acquisition-related costs and other non-operating expenses of
$4.66 and $2.72 per share, respectively
- Prior adjusted FY18 guidance was $19.05 to $19.20
per share, excluding acquisition-related costs and other
non-operating expenses of $3.86 and
$1.34 per share,
respectively
- Conference call at 8:30 a.m.
EST today to discuss preliminary results
- Company to provide detailed 4Q18 and FY18 results and 2019
outlook on January 31st as
previously announced
The Sherwin-Williams Company (NYSE: SHW) announced preliminary
unaudited sales and earnings results for the fourth quarter and
full year ended December 31,
2018.
Consolidated net sales in the fourth quarter increased
approximately 2% compared to fourth quarter 2017. Previous
guidance called for a mid-single digit percentage increase.
Preliminary net sales from stores in the U.S and Canada open for more than twelve calendar
months increased approximately 3% in the quarter.
Based primarily on the lower fourth quarter sales and
non-operating expenses expected to be recognized in the fourth
quarter, diluted net income per share for the full year 2018 is now
expected to be approximately $11.15
per share compared to guidance of $13.85 to $14.00
per share provided on October 25,
2018. Adjusted diluted net income per share for the full
year is expected to be approximately $18.53, which excludes acquisition-related costs
and other non-operating expenses of $4.66 and $2.72 per
share, respectively, compared to the October adjusted guidance of
$19.05 to $19.20 per share, which excludes
acquisition-related costs and other non-operating expenses of
$3.86 and $1.34 per share, respectively. The Company
reported diluted net income per share from continuing operations of
$19.11 per share for the full year
2017, or $15.07 on an adjusted basis,
excluding a $7.04 per share benefit
related to tax reform and acquisition-related costs of $3.00 per share.
Commenting on the preliminary results, Chairman, President and
Chief Executive Officer John G.
Morikis said, "Our performance in the fourth quarter was
disappointing across the board relative to our outlook back in
October. Consolidated revenue growth for the fourth quarter fell
well short of our previous expectation, due in large part to weak
sales growth by our North American stores in October and November.
Store sales rebounded somewhat in December, but not enough to bring
in the quarter. Sales for our Consumer Brands and Performance
Coatings Groups also fell short of expectations. The revenue
shortfall was the primary driver of the significant earnings per
share miss in the quarter. Given the lower preliminary results
for our fourth quarter, our full year preliminary adjusted net
income per share is $18.53 per share,
or about 3% below the midpoint of our previous guidance range. This
full year 2018 adjusted earnings per share is an increase of
approximately 23% over full year 2017 on a comparable
basis."
An updated Regulation G Reconciliation is attached.
Conference Call on January 15,
2019
The Company will conduct a conference call to
discuss its preliminary fourth quarter and full year 2018
expectations at 8:30 a.m. EST on
Tuesday, January 15, 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 January 15th
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 Tuesday, February 5,
2019 at 5:00 p.m.
EST.
Conference Call on January 31,
2019
As previously announced, the Company will
conduct a conference call to discuss its final financial results
for the fourth quarter and full year 2018 and its outlook for the
first quarter and full year 2019 at 11:00 a.m. EST on Thursday, January 31, 2019.
About Sherwin-Williams
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 110 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 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
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.
In addition, our expectations about fourth quarter and full year
2018 results are based on preliminary unaudited information about
the fourth quarter and full year and are subject to revision.
Although the fourth quarter is now completed, we are still in the
process of our standard financial reporting closing procedures.
Accordingly, as we complete our normal quarter and year-end closing
and review processes, actual results could differ materially from
these preliminary results. Factors that could cause our actual
results for the fourth quarter and full year 2018 to
differ materially from our preliminary results include, but are not
limited to, inaccurate assumptions, unrecorded expenses, changes in
estimates or judgments, and facts or circumstances affecting the
application of the Company's critical accounting policies.
Investor Relations
Contact:
|
Media
Contact:
|
Bob
Wells
|
Mike
Conway
|
Senior Vice
President, Corporate Communications &
|
Director, Corporate
Communications
|
Public
Affairs
|
Sherwin-Williams
|
Sherwin-Williams
|
Direct:
216.515.4393
|
Direct:
216.566.2244
|
Pager:
216.422.3751
|
rjwells@sherwin.com
|
mike.conway@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 one-time items. 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.
|
|
|
Preliminary
|
|
|
|
Nine
Months
|
|
Unaudited
|
|
Year Ended
|
|
Ended
|
|
Year Ended
|
|
December 31,
2018
|
|
September
30,
|
|
December
31,
|
|
(previous
guidance)
|
|
2018
|
|
2018
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
|
10.59
|
|
$
|
11.15
|
|
$
|
13.85
|
|
$
|
14.00
|
|
|
|
|
|
|
|
|
California litigation
expense
|
1.09
|
|
1.09
|
|
1.09
|
|
1.09
|
|
|
|
|
|
|
|
|
Environmental expense
provision
|
.25
|
|
1.33
|
|
.25
|
|
.25
|
|
|
|
|
|
|
|
|
Pension plan
settlement expense
|
-
|
|
.30
|
|
-
|
|
-
|
Other non-operating
expenses
|
1.34
|
|
2.72
|
|
1.34
|
|
1.34
|
|
|
|
|
|
|
|
|
Transaction and
integration costs
|
1.08
|
|
2.04
|
|
1.24
|
|
1.24
|
Purchase accounting
impacts
|
1.97
|
|
2.62
|
|
2.62
|
|
2.62
|
Total acquisition
costs
|
3.05
|
|
4.66
|
|
3.86
|
|
3.86
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
$
|
14.98
|
|
$
|
18.53
|
|
$
|
19.05
|
|
$
|
19.20
|
|
|
|
|
|
Year
|
|
Ended
|
|
December
31,
|
|
2017
|
|
|
Diluted net income
per share
|
$
|
18.67
|
One-time charge
related to discontinued operations
|
.44
|
Diluted net income
per share from continuing operations
|
19.11
|
One-time benefit from
deferred income tax reductions
|
7.04
|
Transaction and
integration costs
|
.88
|
Purchase accounting
impacts
|
2.12
|
Total acquisition
costs
|
3.00
|
|
|
|
Consolidated
excluding Valspar acquisition costs and one-time items
|
$
15.07
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/the-sherwin-williams-company-announces-preliminary-unaudited-4q18-and-full-year-2018-sales-and-earnings-results-300778385.html
SOURCE The Sherwin-Williams Company