- PPG again earns Equality 100 Award in 2023 Corporate Equality Index, spotlighting 20 years...
- Arkema finalises the acquisition of its 54% stake in PI Advanced Materials
- BASF Research Press Conference 2023 – Chemistry and sustainability: A perfect match
- IChemE celebrates 2023 Global Awards winners
- Flint Group puts EkoCure® Dual Cure technology in the spotlight at Labelexpo Asia 2023
The Sherwin-Williams Company announced its financial results for the third quarter ended September 30, 2023. All comparisons are to the third quarter of the prior year, unless otherwise noted.
- Consolidated net sales increased 1.1% in the quarter to $6.12 billion
- Net sales from stores in the U.S. and Canada open more than twelve calendar months increased 3.0% in the quarter
- Diluted net income per share increased 12.6% to $2.95 per share in the quarter compared to $2.62 per share in the third quarter 2022
- Adjusted diluted net income per share increased 13.1% to $3.20 per share in the quarter compared to $2.83 per share in the third quarter 2022
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 12.6% to $1.27 billion, or 20.7% of net sales
- Generated net operating cash of $2.60 billion, or 14.6% of net sales, during the first nine months of 2023
- Increasing full year 2023 diluted net income per share guidance to a range of $9.21 to $9.41 per share, including acquisition-related amortization expense of $0.80 per share and restructuring-related net expense of $0.09 per share
- Increasing full year 2023 adjusted diluted net income per share guidance to a range of $10.10 to $10.30 per share
“Sherwin-Williams delivered strong third quarter results in an environment where demand remained highly variable by end market and region, and against a challenging prior year comparison,” said Chairman and Chief Executive Officer, John G. Morikis. “Consolidated net sales were within our guidance range, and consolidated gross margin of 47.7% expanded significantly both sequentially and year-over-year driven by pricing discipline and moderating raw material costs. As we previously indicated, we have deliberately chosen to continue investing at this time in multiple growth initiatives and solutions for our customers, which is reflected in higher SG&A costs in the quarter compared to a year ago. While we executed on these initiatives, we continued to create shareholder value as adjusted diluted net income per share and EBITDA grew by double digit percentages, and we returned $566 million to our shareholders through dividends and share repurchases during the quarter.
“From a segment perspective, sales growth in Paint Stores Group was led by protective and marine and commercial, with residential repaint and property maintenance also delivering growth. As expected, sales in new residential softened due to slowing completions, though we are confident in continuing share gains. Segment margin expanded, and we opened 16 new paint stores in the quarter. The sales decrease in our Consumer Brands Group was largely the result of the divestiture of the China architectural business and softer demand in North America, as the DIY consumer remained under pressure. Conversely, the Group’s sales in Latin America and Europe increased by double digit percentages. In the Performance Coatings Group, the Industrial Wood and Automotive Refinish businesses delivered growth. Sales decreased in our General Industrial and Coil businesses and varied widely by region. As expected, industry-wide destocking continued to impact our Packaging business. Segment margin improved given pricing discipline and moderating costs.”