CLEVELAND — The Sherwin-Williams Co. has reported its financial results for the first quarter ended March 31. Consolidated net sales, net income and diluted net income per common share were essentially flat in the quarter with last year’s results. The company said consolidated net sales were $1.756 billion in the quarter, a decline of .7 percent from $1.769 billion in sales achieved in last year’s first quarter. Consolidated net income of $111.8 million in the quarter decreased 1.6 percent from $113.7 million in the first quarter of 2006. Diluted net income per common share in the quarter improved 1.2 percent to 83 cents per share from 82 cents per share in the first quarter of 2006.
Commenting on the financial results for the first quarter, Christopher Connor, chairman and chief executive officer, said, “We are encouraged by the improvement in domestic commercial architectural and industrial maintenance sales in the Paint Stores Group and continued growth in architectural, industrial maintenance, OEM and automotive finishes sales in the Global Group. The domestic DIY and new residential markets were softer than we had anticipated during the first quarter.
“In spite of the tough paint market in the first quarter, we continued to invest in new stores, opening 17 net new locations in Paint Stores Group and ten in our Global Group,” said Connor. “We made further progress in our management of working capital, reducing our working capital ratio to 13.1 percent of sales from 13.7 percent in the first quarter last year. Our operating segment management teams continued to achieve improved gross margins as a result of hard work invested over the last few years to return our gross margins to more normal run rates after being pressured by the significant rise in raw material costs during 2004, 2005 and 2006. We created shareholder value by our practical use of cash to buy shares of our own stock and increase the dividend rate, and have strategically positioned our balance sheet to be financially sound and capable of financing our business growth.”
The company anticipates achieving a percentage increase in consolidated net sales in the low single digits over last year’s second quarter, said Connor. The company expects diluted net income per common share for the second quarter to be in the range of $1.37 to $1.45 per share compared to $1.33 per share last year. For the full year 2007, the company anticipates that the percentage increase in its consolidated net sales will be in the low single digits over 2006. Sherwin-Williams is reaffirming its guidance that its diluted net income per common share for 2007 will be in the range of $4.55 to $4.65 per share compared to $4.19 per share earned in 2006.
For more information about Sherwin-Williams, go to: http://www.sherwin.com.
