Financial News

Sherwin-Williams

December 20, 2007

Sherwin-Williams reported its financial results for the third quarter and nine months ended September 30, 2007. Compared to the same periods in 2006, consolidated net sales increased $80.3 million, or 3.8%, to $2.20 billion in the quarter and $136.2 million, or 2.3%, to $6.15 billion in nine months due primarily to acquisitions, strong domestic paint sales to commercial contractors, improved industrial maintenance product sales and strong international paint sales. Four acquisitions completed in the third quarter, including Columbia Paint & Coatings Co. completed at the end of the quarter, and two acquisitions completed during the second quarter, including M. A. Bruder & Sons Incorporated, increased consolidated sales by two percent in the quarter and by one percent in nine months.
Net sales in the Paint Stores Group increased $53.2 million, or 3.9%, to $1.40 billion in the quarter and $85.2 million, or 2.3%, to $3.82 billion in nine months due primarily to acquisitions, improving domestic architectural paint sales to do-it-yourself (DIY) customers and commercial and residential repaint contractors, and strong industrial maintenance product sales. Net sales from stores open for more than twelve calendar months decreased 0.6% in the quarter and 0.9% in nine months. The acquisitions of Columbia and M. A. Bruder added 172 stores to the Group’s operations and increased the Group’s net sales by 2.7% in the quarter and 1.3% in nine months. Paint Stores Group segment profit increased $21.7 million, or 9.6%, to $248.4 million in the quarter and $51.7 million, or 9.3%, to $608.9 million in nine months.
Net sales of the Consumer Group decreased $5.5 million, or 1.6%, to $349.4 million in the quarter and $38.5 million, or 3.5%, to $1.05 billion in nine months. The sales declines were due primarily to soft DIY demand at most of the Group’s retail customers and, during the first quarter of 2007, the final period in the elimination of a portion of a paint program with a large retail customer.
Net sales of the Global Group increased $32.9 million, or eight percent to $444.9 million in the quarter and $90.1 million, or 7.6%, to $1.28 billion in nine months when stated in U.S. dollars. The second quarter acquisition of Nitco Paints Private Limited and the third quarter acquisitions of Napko, S.A. de C.V. and Pinturas