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Sherwin-Williams Q1 consolidated net sales increased 5.1%

Staff writer ▼ | April 25, 2016
Paint and coating manufacturing company Sherwin-Williams announced its financial results for the first quarter ended March 31, 2016.
Sherwin-Williams
Sherwin-Williams   Diluted net income per common share increased to $1.57
Compared to the same period in 2015, consolidated net sales increased $123.7 million, or 5.1%, to $2.57 billion in the quarter due primarily to higher paint sales volume in our Paint Stores and Consumer Groups.

Unfavorable currency translation rate changes decreased consolidated net sales 2.8% in the quarter. Diluted net income per common share in the quarter increased to $1.57 per share, including a $.24 per share charge from costs associated with the anticipated acquisition of Valspar, from $1.38 per share in 2015.

The increase in first quarter diluted net income per common share was due primarily to improved operating results of the Paint Stores Group.

Currency translation rate changes decreased diluted net income per common share by $.06 per share in the quarter.

Net sales in the Paint Stores Group increased 10.5% to $1.62 billion in the quarter due primarily to higher architectural paint sales volume across all end market segments. Net sales from stores open for more than twelve calendar months increased 9.4% in the quarter over last year's comparable period.

Paint Stores Group segment profit increased $77.0 million to $253.5 million in the quarter from $176.6 million last year due primarily to higher paint sales volume. Segment profit as a percent to net sales increased in the quarter to 15.7% from 12.1% last year.

Net sales of the Consumer Group increased 7.5% to $378.1 million in the quarter due primarily to sales of HGTV HOME by Sherwin-Williams paint to Lowe's stores. Segment profit increased to $64.0 million in the quarter from $55.4 million last year due primarily to improved operating efficiencies and higher volume sales.

As a percent to net external sales, segment profit increased in the quarter to 16.9% from 15.8% last year.

The Global Finishes Group's net sales stated in U.S. dollars decreased 3.3% to $454.2 million in the quarter. Unfavorable currency translation rate changes decreased net sales by 4.7% in the quarter.

Stated in U.S. dollars, segment profit increased in the quarter to $48.6 million from $38.9 million last year due primarily to decreasing raw material costs and good cost control partially offset by unfavorable currency translation rate changes. Unfavorable currency translation rate changes reduced segment profit $3.0 million in the quarter.

As a percent to net external sales, segment profit increased in the quarter to 10.7% from 8.3% last year.

The Latin America Coatings Group's net sales stated in U.S. dollars decreased 24.7% to $125.2 million in the quarter due primarily to unfavorable currency translation rate changes and volume declines partially offset by selling price increases.

Unfavorable currency translation rate changes decreased net sales by 22.2% in the quarter. Stated in U.S. dollars, segment profit decreased in the quarter to a loss of $0.9 million from a profit of $9.5 million last year due primarily to increasing raw material costs and unfavorable currency translation rate changes partially offset by selling price increases.

Unfavorable currency translation rate changes decreased segment profit $6.2 million in the quarter. As a percent to net external sales, segment profit decreased in the quarter to a loss of 0.7% from 5.7% profit last year.


 

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