The Sherwin-Williams Co. reported that its net sales increased 4 percent to $3.28 billion for the third quarter of 2016, and 3.9 percent for the first nine months of the year, primarily because of higher retail paint sales and a change in how it classifies revenue. Net sales increased $127.2 million for the three months that ended Sept. 30 and $338.3 million for the first three-quarters of the year.

The Cleveland paint and coatings company said that the change in revenue classification that began in its third quarter, which it said were related to “grossing up third-party service revenue and related costs that were previously netted and immaterial in prior periods,” increased sales 2.3 percent during the quarter and 0.8 percent for the first nine months.

Unfavorable currency rates hurt net sales by 0.8 percent during the quarter and by 1.6 percent during the first nine months. Diluted net income per common share rose to $4.08 per share for the quarter, including a 24-cents-per-share charge for costs related to the expected Valspar acquisition. Diluted net income for the first nine months increased to $9.85 per share, including 64 cents per share from costs related to the Valspar acquisition.

By segment, net sales increased 6.7 percent in the Paint Stores Group, to $2.23 billion in the quarter, and by 7.5 percent to $5.95 billion for the nine months, again because of higher paint store sales and the change in revenue classification. Net sales at stores open at least a year increased 2.1 percent during the quarter and 5.2 percent for the first three quarters of the year.

In the Consumer Group, net sales decreased 2.1 percent to $412.9 million, mainly because of lower sales volumes to retail and commercial customers. Net sales for the first nine months increased 0.4 percent to $1.27 billion. In the Global Finishes Group, net sales decreased 1.1 percent to $480.7 million during the quarter, and decreased 1.9 percent to $1.43 billion for the nine months. The impact of lower raw material costs and good cost controls were pulled down by unfavorable currency rates.

In the Latin American Coatings Group, net sales increased 0.4 percent to $156.6 million in the quarter, and declined 12.1 percent to $415.1 million for the first nine months. The impact of higher selling prices were hurt by unfavorable currency rates and declines in sales volumes.

John Morikis, Sherwin-Williams’ president and chief executive, said in a statement that “despite this slowdown, we remain bullish on future demand across most of our end markets, and we continue to invest in areas that will drive growth and productivity in the quarters and years ahead.”

The company opened 55 net new retail stores and increased the dividend rate to 84 cents from last year’s 67 cents. “Our balance sheet remains flexible and is positioned well for the anticipated Valspar acquisition and other investments in our business,” Morikis said.

“For the fourth quarter, we anticipate our core consolidated net sales will increase a low single digit percentage compared to last year’s fourth quarter,” he said. At that rate, “we estimate diluted net income per common share in the fourth quarter of 2016 to be in the range of $1.45 to $1.55 per share, compared to $2.12 per share earned in the fourth quarter of 2015.”