PUBLIC COMPANY; YEAR ESTABLISHED: 1866
REVENUE: $12.8 billion s (2018: $12.1 billion)
(Note: Sherwin-Williams reported total revenue of $17.9 billon for fiscal 2019. 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 and CEO; David B. Sewell, president and COO; Allen J. Mistysyn, senior VP – finance and CFO; Mary Garceau, senior VP, general counsel and secretary; Jane Cronin, corporate controller.
The Sherwin-Williams Company reported $17.9 billion in net sales for 2019. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $12.8 billion.
Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily 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.
The company is comprised of three reportable segments. The Americas Group comprises 57 percent of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 15 percent of total sales and 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 global supply chain for paint, coatings and related products.The Performance Coatings Group (28 percent of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.
In his letter to shareholders Chairman and CEO, John Morikis said, “We are pleased to report that 2019 was another outstanding year for The Sherwin-Williams Company. We reported record sales for the ninth consecutive year and record cash from operations for the fifth consecutive year...We continue to drive our success by executing on the four pillars of our strategy: Customer focus, industry-leading innovation, value-added service and expertise, and differentiated distribution.”
Key Happenings in 2019:
Sherwin-Williams to Build New Global HQ in Downtown Cleveland, R&D Center in Brecksville
Sherwin-Williams announced it is finalizing plans to build a new global headquarters in downtown Cleveland and a new R&D center in the Cleveland suburb of Brecksville.
“Our plans to continue investing in Cleveland and Northeast Ohio build on our 154-year legacy as one of the region’s top employers and drivers of economic activity,” Sherwin-Williams Chairman and CEO John G. Morikis said. “Driven by our continued need to serve our customers at the highest level and retain and attract top talent, we intend to create a next-generation workplace environment that ignites creativity, collaboration and industry-leading innovation. We currently operate out of a 90-year-old headquarters building that has served us well but is no longer conducive to meeting our future needs. The major planned investment in Cleveland and Northeast Ohio we are announcing reflects our confidence in the continued strength of the region and its people and our public partners’ ability to deliver on their commitments.”
Preliminary plans call for a $600 million investment to build both facilities.
The planned new global headquarters would be an approximately 1,000,000-square-foot facility in downtown Cleveland.The approximately 500,000-square-foot R&D center would serve as the corporate anchor for a new mixed-use development project.
Combined, the two facilities would house more than 3,500 employees with room to accommodate significant future growth.
Sherwin-Williams estimates a minimum of 400 jobs would be added at these facilities over time, an increase of 11 percent to the company’s current local workforce.
Sherwin-Williams is working with several state and local partners on this project: The State of Ohio, JobsOhio, Cuyahoga County, Cleveland-Cuyahoga County Port Authority, and the cities of Cleveland and Brecksville. Approvals of the company’s economic development packages and other matters remain pending and are expected over the next several months.
The R&D center and global headquarters project continues to be a multi-year process.
The transition to the new facilities is not expected to occur until 2023 at the earliest.