PUBLIC COMPANY; YEAR ESTABLISHED: 1866
REVENUE: $11.5 billion (2016: $7.426 billion)
(Note: Sherwin-Williams reported total revenue of $14.9 billon for fiscal 2017. However, for purposes of this report, sales of painting tools and equipment are not reported as part of coatings revenue. The above is Coatings World’s estimate.)
Architectural coatings; Industrial coatings; Protective and marine coatings; OEM product finishes; Wood finishes; Aerospace coatings
John Morikis, chairman, president and CEO; Allen J. Mistysyn, senior vice president – finance and CFO; Mary Garceau, senior vice president, general counsel and secretary; Jane Cronin, corporate controller.
The Sherwin-Williams Company reported $14.9 billion in net sales for 2017. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $11.5 billion.
Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, Thompson’s Water Seal and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams branded products are sold exclusively through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.
Sherwin-Williams is comprised of three reportable segments: The Americas Group (60.9 percent), The Consumer Brands Group (14.4 percent) and The Performance Coatings Group (24.7 percent). The Americas Group operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The group also manufactures and sells a wide range of architectural paints, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers.
The Consumer Brands Group sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a highly efficient global supply chain for paint, coatings and related products.
The Performance Coatings Group sells a wide range of coatings and finishes and sells to a growing customer base in general industrial, industrial wood, protective and marine, coil, packaging and automotive markets in more than 110 countries.
In his annual letter to shareholders, John Morikis, chairman, president and CEO said, “The Sherwin-Williams Company described in the pages of this annual report differs in many meaningful ways from the company we reported on just one year ago. With the completion of the Valspar acquisition on June 1, 2017, we are a larger, more diversified and more global enterprise. We are also a more complex and disparate company with higher balance sheet leverage. I have heard from many institutional investors over the past year that large-scale acquisitions often fail to create significant shareholder value. Based on our experience thus far, I believe our acquisition of Valspar will prove to be a convincing exception to this rule. The successful integration of Valspar will create a faster-growing, more profitable company. Since closing the acquisition, we have invested considerable effort and energy in fortifying our customer relationships, defining the right organizational structure and building momentum in every line of business.”
Board and Management Changes
In April, Michael Thaman was elected to the Board of Directors and appointed to the Compensation and Management Development Committee. In December, Sean Hennessy announced his retirement after 33 years of dedicated service to the company, including 15 years as the Company’s senior vice president – Finance and CFO. Sherwin-Williams’ continued focus on internal talent development resulted in several leadership appointments during the year. Mary Garceau was promoted to senior vice president, general counsel and secretary. Dennis Karnstein was named president and general manager of Industrial Wood Coatings Division, Performance Coatings Group. Bruce Irussi was promoted to the position of president and general manager of General Industrial Coatings Division, Performance Coatings Group.
Sherwin-Williams launched Loxon Self-Cleaning Acrylic Coating, a product specifically engineered for the exterior, above-grade masonry to provide a clean and attractive look with high-performance protection. The self-cleaning formula easily sheds dirt with rain or water contact and provides advanced durability, water shedding, wind-driven rain and dirt pickup resistance.
In addition to stucco, masonry and cement board, Loxon Self-Cleaning Acrylic Coating can be applied directly to bare or previously coated concrete that is at least seven days old, has a pH of 6-13 and in temperatures down to 35° Fahrenheit. Meeting the most stringent VOC regulations, the new product is available in a flat sheen in a wide range of colors at Sherwin-Williams stores in the U.S.