Sherwin-Williams Increases Second Quarter 2020 Sales Guidanc
CLEVELAND, June 22, 2020 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today increased its net sales guidance for the second quarter of 2020. The Company now expects second quarter 2020 consolidated net sales to decrease by a mid-single-digit percentage compared to the second quarter of 2019. The Company's prior guidance, issued April 29, 2020, was for second quarter 2020 consolidated net sales to decrease by a low to mid-teens percentage compared to the second quarter of 2019.
On a segment basis, second quarter net sales in The Americas Group are expected to be down by a high-single-digit percentage compared to the previous guidance of down by a low-double-digit to mid-teens percentage. Net sales in the Consumer Brands Group are expected to be significantly above the high end of the previous guidance of up by a high-single-digit to low-double-digit percentage. Net sales in the Performance Coatings Group are expected to be in line with the previous guidance of down by a high-teens percentage.
"Our employees have performed admirably during this challenging time to meet our customers' needs," said Chairman and Chief Executive Officer, John G. Morikis. "We are raising our second quarter sales guidance given our ability to capture and serve greater than expected demand in our North American architectural businesses.
"We are encouraged by the sequential improvement in all three of our business segments during the second quarter. In The Americas Group, we rapidly adapted to the pandemic by implementing curbside pickup in our stores, utilizing our fleet of over 3,000 delivery vehicles, and leveraging our e-commerce platform. We have gradually and safely reopened nearly all of our sales floors over the last month. DIY growth in our stores remains strong, while our residential repaint and new residential segments have improved at a faster rate than our property management, new commercial and protective and marine segments. In the Consumer Brands Group, the unprecedented demand from most of our retail partners has remained robust, driven by consumers who are nesting during the pandemic and focused on DIY projects. In the Performance Coatings Group, demand has been variable by end market and geography. Packaging remains our strongest performer, while demand in our coil business has been choppy following the slower reopening of many commercial construction projects. Our automotive refinish business remains under pressure as driving trends have not yet returned to pre-pandemic levels. Recovery remains sluggish in our general industrial and industrial wood businesses.
"Although uncertainties in the timing and pace of improvement in the U.S. and global operating environments continue, we remain confident in our ability to successfully manage through these challenging conditions while continuing to invest and execute on initiatives that will drive our long-term growth."
The Company is scheduled to release second quarter 2020 financial results on July 28, 2020, at which time it will provide its outlook on third quarter sales and update its full year sales and earnings per share guidance.
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 4,900 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 Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain "forward-looking statements," as defined under U.S. federal securities laws, with respect to sales and other matters. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "potential," "seek," "intend" or "anticipate" or the negative thereof or comparable terminology. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements and from the Company's historical results and experience. These risks, uncertainties and other factors include such things as: finalization of our financial statements for the quarter ended June 30, 2020; general business and economic conditions; the Company's ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Company's relationships with customers and suppliers; changes in raw material availability and pricing; adverse weather conditions or impacts of climate change, natural disasters and public health crises, including the COVID-19 pandemic; the duration, severity and scope of the COVID-19 pandemic and the actions implemented by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and factors more fully described in the Company's reports filed with the Securities and Exchange Commission (SEC); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE The Sherwin-Williams Company