Sherwin-Williams Increases Second Quarter 2021 Sales Guidance and Full Year 2021 Sales and Diluted Net Income Per Share Guidance
The Sherwin-Williams Company (NYSE: SHW) has raised its sales guidance for Q2 2021, projecting a high-teens percentage increase compared to Q2 2020. For the entire year, net sales guidance has been updated to reflect a rise of high-single to low-double digits over 2020. Expected diluted net income per share is now between $8.01 and $8.31, inclusive of acquisition-related amortization and a loss from the Wattyl divestiture. CEO John G. Morikis noted robust demand in both architectural and industrial markets, despite ongoing raw material inflation.
- Increased Q2 2021 consolidated net sales guidance to high-teens percentage increase over Q2 2020.
- Full year 2021 sales guidance raised to high-single to low-double-digit percentage increase over 2020.
- Diluted net income per share guidance raised to $8.01 to $8.31, a solid increase from previous estimates.
- Strength in demand for residential and industrial sectors, outperforming expectations.
- Raw material inflation continues to impact costs, posing potential pressure on margins.
CLEVELAND, June 8, 2021 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today increased its net sales guidance for the second quarter 2021 and its net sales and diluted net income per share guidance for the full year 2021.
SUMMARY
- Increasing second quarter 2021 consolidated net sales guidance to be up a high-teens percentage over second quarter 2020
- Increasing full year 2021 consolidated net sales guidance to be up a high-single to low-double-digit percentage over full year 2020
- Increasing full year 2021 diluted net income per share guidance to be in the range of
$8.01 to$8.31 per share, including an estimated$0.80 per share for acquisition-related amortization expense and a loss of$0.34 per share on the Wattyl divestiture
CEO REMARKS
"We outperformed expectations in the first quarter, and sales in The Americas Group and Performance Coatings Group have been stronger than expected in the second quarter," said Chairman, President and Chief Executive Officer, John G. Morikis. "Demand remains strong in our architectural end markets, led by residential repaint and new residential, with continued improvement in commercial and property management. Demand is also strong on the industrial side of our business and is recovering faster than expected. At the same time, the raw material inflation we experienced in the first quarter has continued in the second quarter. We have great confidence we will offset these higher costs, and we are implementing additional price increases across all our segments, including a
UPDATED GUIDANCE
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Second Quarter 2021 |
Revised Guidance |
Previous Guidance (April 27, 2021) |
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Sales |
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The Americas Group |
Up low to mid-twenties % |
Up mid to high-teens % |
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Consumer Brands Group |
Down low to mid-twenties % |
Down low-double-digits to mid-teens % |
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Performance Coatings Group |
Up mid to high-thirties % |
Up high-twenties % |
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Consolidated |
Up high-teens % |
Up mid to high-teens % |
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Full Year 2021 |
Revised Guidance |
Previous Guidance (April 27, 2021) |
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Sales |
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The Americas Group |
Up low-double-digit % |
Up mid to high-single-digit % |
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Consumer Brands Group |
Down low to mid-single-digit % |
Up or down low-single-digit % |
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Performance Coatings Group |
Up mid to high-teens % |
Up mid-single-digit % |
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Consolidated |
Up high-single to low-double-digit % |
Up mid to high-single-digit % |
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Earnings Per Share |
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Diluted net income per share |
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Loss on divestiture |
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Acquisition-related amortization expense |
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Adjusted diluted net income per share |
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The Company is scheduled to release second quarter 2021 financial results on July 27, 2021.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company 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 5,000 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, earnings 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: 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.
INVESTOR RELATIONS CONTACTS:
Jim Jaye
Senior Vice President, Investor Relations & Corporate Communications
Direct: 216.515.8682
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
REGULATION G RECONCILIATIONS
Management of the Company believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding the loss on the divestiture of Wattyl, and Valspar acquisition-related amortization expense. This adjusted earnings per share measurement is not in accordance with U.S. generally accepted accounting principles (GAAP). It should not be considered a substitute for earnings per share computed in accordance with U.S. GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with U.S. GAAP to adjusted diluted net income per share.
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Revised Guidance (June 8, 2021) (After-Tax) |
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Previous Guidance (April 27, 2021) (After-Tax) |
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Year Ended December 31, 2021 |
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Year Ended December 31, 2021 |
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Year Ended December 31, 2020 |
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Low |
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High |
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Low |
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High |
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(After-Tax) |
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Diluted net income per share |
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Loss on divestiture |
0.34 |
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0.34 |
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0.34 |
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0.34 |
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Acquisition-related amortization expense (1) |
0.80 |
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0.80 |
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0.80 |
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0.80 |
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0.83 |
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Adjusted diluted net income per share |
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(1) |
Acquisition-related amortization expense consists primarily of the amortization of intangible assets related to the Valspar acquisition and is included in Amortization. |
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SOURCE The Sherwin-Williams Company
FAQ
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