By Jeffrey T. Lewis

 

The Sherwin-Williams Company said Tuesday it was updating its guidance for net sales for the third quarter and 2021, despite strong demand, because of raw material shortages and inflation.

The Cleveland-based paint maker said it now expects consolidated sales in the third quarter to be flat or down slightly from a year earlier, compared to the guidance it provided on Sept. 8 for net sales to be up or down low single digits.

The company also said it expects third-quarter net income per share in a range from $1.80 to $1.90, and adjusted net income per share of $2.00 to $2.10. The company had given no previous guidance for those figures.

Sherwin-Williams Chief Executive John G. Morikis said the company doesn't expect to see improved supply or lower prices for raw materials in the fourth quarter, as previously anticipated.

For 2021, Sherwin-Williams revised its guidance for net sales to increase by high single digits, in terms of percentage, from up high-single to low-double digits. The company also reduced its guidance for net income per share to a range from $7.21 to $7.41, from $8.01 to $8.31, and cut its guidance for adjusted net income per share to a range from $8.35 to $8.55, from $9.15 to $9.45.

Sherwin-Williams said it also signed an agreement Tuesday to buy Specialty Polymers, Inc,. a maker of primarily water-based polymers used in coatings and other applications. Specialty Polymers had revenue of about $112 million in 2020, including sales to Sherwin-Williams.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

September 28, 2021 17:08 ET (21:08 GMT)

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