Financial News

S-W Releases Third Quarter, Nine-Month Sales

August 9, 2005

 The Sherwin-Williams Company’s third quarter consolidated net
sales dropped 3.2% to $1.37 billion and 3.2% to $3.93 billion
for the nine months ended Sept. 30. The most significant factors
impacting sales came from the continuing poor domestic
and South American economic conditions, continuing weakness
in foreign currency exchange rates and previously
announced discontinued paint programs at certain customers,
according to the company. In addition, third quarter
sales were further negatively impacted by the temporary
change in buying habits due to the attacks on the U.S. on
Sept. 11, 2001, the company announced. Net income for the
third quarter dropped to $90.3 million from $106.7 million in
last year’s third quarter. In the first nine months, net income
was $217.7 million, down from $263.5 million last year.
Net sales in the paint stores segment dropped 0.6% in
the quarter to $894.1 million. Sales for the nine-month
period rose 0.2% to $2.47 billion due primarily to higher
architectural paint sales which, prior to the third quarter,
offset sales shortfalls in product finishes and associated
product categories, the company reported. Third quarter
sales in this segment continued to be impacted by the sluggish
domestic economy and sales of product finishes that
remain weak. Comparable-store sales dropped 1.8% and
1.7% for third quarter and first nine months, respectively.
Net sales of the consumer segment were down 6.1% in
the quarter to $288.5 million and 10% in nine months to
$888.2 million compared to last year.
The automotive finishes segment’s net sales fell 9.5% in
the quarter to $115.3 million and 5.7% in nine months to
$355.8 million.
Net sales in the international coatings segment dropped
12% in the quarter to $67.3 million and 6.3% in nine
months to $211.1 million.