Sherwin-Williams Boosts Outlook as Sales Rise

By Michael Calia 

Sherwin-Williams Co. boosted its outlook as it said its sales increased in the most recent quarter, with the company's paint-stores group delivering the strongest growth.

The company's profit met analysts' expectations, but revenue came in below them.

Sherwin-Williams, which makes Dutch Boy paints, raised its full-year earnings outlook to $10.90 a share to $11.10 a share. The company had said in December that it expected earnings of $10.65 to $10.85 a share in earnings, which was below analysts' views at the time.

The Cleveland, Ohio, paint producer has sought to improve its results by focusing more on the U.S. market, which is undergoing a housing recovery, than its rivals. The effects of a strong dollar weighed on the company's results in the most recent period, as well.

The company posted earnings of $132.7 million, or $1.37 a share, up from $116.1 million, or $1.14 a share, a year ago.

Sales rose 4.6% to $2.57 billion.

Analysts had projected earnings of $1.37 a share and revenue of $2.6 billion.

The paint-stores group posted a sales increase of 8% to $1.58 billion because of higher sales volumes of architectural paint.

The consumer group's sales rose 1.6% to $276.9 million, and global finishes saw sales rise 1.1% to $502.4 million.

For the current quarter, the company said it expects to post earnings of $1.30 to $1.45 a share and revenue growth in the mid single-digit range. Analysts had projected $1.55 a share in earnings and 9% revenue growth.

Write to Michael Calia at [e-mail]

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