Sherwin-Williams Profit Rises 49%

   By Anne Steele 
 

Sherwin-Williams Co. reported its profit soared 49% in the most recent quarter as sales jumped in its paint-store and consumer group segments, though it gave a muted full-year profit outlook.

The Cleveland-based company has sought to improve its results by focusing on the U.S. market amid the housing recovery while the stronger dollar has weighed on demand in some of its international segments, particularly Latin America.

For the current quarter, Sherwin-Williams anticipates sales will increase by a low single-digit percentage compared to the first quarter of 2015. Earnings are estimated in the range of $1.50 to $1.65 a share. Analysts polled by Thomson Reuters are expecting $1.62 a share on 3% revenue growth.

For the full year, the company expects sales to increase by a low single-digit percentage compared to 2015. Earnings for the year are estimated in the range of $12.20 to $12.40 a share. Analysts anticipate earnings of $12.75 on 5% revenue growth.

In all for the final quarter of the year, the company posted earnings of $198 million, or $2.12 a share, up from $132.7 million, or $1.37 a share, a year ago. Revenue edged up 1.4% to $2.6 billion. Currency translation reduced sales by 3.6% in the quarter.

The company had guided for earnings of $1.70 to $1.95 a share with sales rising in the low single digits.

In the latest quarter, paint-store sales grew 5.9% to $1.68 billion on higher architectural paint sales volumes. The consumer group's sales leapt 13.6% to $314.6 million, while global finishes sales fell 9.5% to $454.8 million because of currency effects. Latin America coatings group sales dropped 24% to $158.7 million.

Shares of Sherwin-Williams, which have risen 2.2% over the past three months, declined 0.9% in premarket trading.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 08:40 ET (13:40 GMT)

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