The Sherwin-Williams Company Reports 2024 Second Quarter Financial Results
Sherwin-Williams (NYSE: SHW) reported its Q2 2024 financial results, showing consolidated net sales up 0.5% to $6.27 billion. The company saw diluted net income per share increase 14.0% to $3.50, while adjusted diluted net income per share rose 12.5% to $3.70. EBITDA grew 12.1% to $1.44 billion. The Paint Stores Group led performance with a 3.5% increase in net sales and 6.8% growth in segment profit. Consumer Brands Group sales declined 10.7%, while Performance Coatings Group sales increased slightly by 0.6%. Sherwin-Williams has increased its full-year 2024 guidance, now expecting diluted net income per share between $10.30 and $10.60, and adjusted diluted net income per share ranging from $11.10 to $11.40.
Sherwin-Williams (NYSE: SHW) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando vendite nette consolidate in aumento dello 0,5% a 6,27 miliardi di dollari. L'azienda ha registrato un aumento del reddito netto diluito per azione del 14,0% a 3,50 dollari, mentre il reddito netto diluito rettificato per azione è salito del 12,5% a 3,70 dollari. L'EBITDA è cresciuto del 12,1% a 1,44 miliardi di dollari. Il Gruppo dei Negozi di Vernici ha guidato le performance con un aumento del 3,5% delle vendite nette e una crescita del profitto di segmento del 6,8%. Le vendite del Gruppo Consumer Brands sono diminuite del 10,7%, mentre le vendite del Gruppo Performance Coatings sono aumentate leggermente dello 0,6%. Sherwin-Williams ha aumentato le previsioni per l'intero anno 2024, ora prevedendo un reddito netto diluito per azione compreso tra 10,30 e 10,60 dollari e un reddito netto diluito rettificato per azione variabile tra 11,10 e 11,40 dollari.
Sherwin-Williams (NYSE: SHW) informó sus resultados financieros del segundo trimestre de 2024, mostrando ventas netas consolidadas en aumento del 0,5% a 6,27 mil millones de dólares. La compañía vio aumento del ingreso neto diluido por acción del 14,0% a 3,50 dólares, mientras que el ingreso neto diluido ajustado por acción creció un 12,5% a 3,70 dólares. El EBITDA creció un 12,1% a 1,44 mil millones de dólares. El Grupo de Tiendas de Pintura lideró el rendimiento con un incremento del 3,5% en las ventas netas y un crecimiento del 6,8% en el beneficio por segmento. Las ventas del Grupo de Marcas para Consumidores disminuyeron un 10,7%, mientras que las ventas del Grupo de Recubrimientos de Rendimiento aumentaron ligeramente un 0,6%. Sherwin-Williams ha aumentado su previsión para todo el año 2024, ahora esperando un ingreso neto diluido por acción entre 10,30 y 10,60 dólares, y un ingreso neto diluido ajustado por acción oscilando entre 11,10 y 11,40 dólares.
셔윈-윌리엄스(Sherwin-Williams, NYSE: SHW)는 2024년 2분기 재무 결과를 발표하며 통합 순매출이 0.5% 증가한 62억 7천만 달러를 기록했습니다. 이 회사는 희석화 주당 순이익이 14.0% 증가하여 3.50달러에 달했으며, 조정된 희석화 주당 순이익은 12.5% 증가하여 3.70달러에 이르렀습니다. EBITDA는 12.1% 증가하여 14억 4천만 달러가 되었습니다. 페인트 매장 그룹이 3.5%의 순매출 증가와 6.8%의 세분화 이익 성장률로 성과를 이끌었습니다. 소비자 브랜드 그룹의 매출은 10.7% 감소했지만, 성능 코팅 그룹의 매출은 0.6% 소폭 증가했습니다. 셔윈-윌리엄스는 2024년 전체 연도 전망을 상향 조정했습니다, 이제 희석화 주당 순이익이 10.30달러에서 10.60달러 사이일 것으로 기대하고 있으며, 조정된 희석화 주당 순이익은 11.10달러에서 11.40달러로 예상하고 있습니다.
Sherwin-Williams (NYSE: SHW) a publié ses résultats financiers du deuxième trimestre 2024, montrant que les ventes nettes consolidées ont augmenté de 0,5 % pour atteindre 6,27 milliards de dollars. La société a constaté une augmentation du bénéfice net dilué par action de 14,0 % à 3,50 dollars, tandis que le bénéfice net dilué ajusté par action a augmenté de 12,5 % à 3,70 dollars. L'EBITDA a crû de 12,1 % pour atteindre 1,44 milliard de dollars. Le Groupe des Magasins de Peinture a mené les performances avec une augmentation de 3,5 % des ventes nettes et une croissance du bénéfice du segment de 6,8 %. Les ventes du Groupe Marques Consommateurs ont diminué de 10,7 %, tandis que celles du Groupe des Revêtements de Performance ont légèrement augmenté de 0,6 %. Sherwin-Williams a haussé ses prévisions pour l'ensemble de l'année 2024, s'attendant désormais à un bénéfice net dilué par action compris entre 10,30 et 10,60 dollars, et un bénéfice net dilué ajusté par action allant de 11,10 à 11,40 dollars.
Sherwin-Williams (NYSE: SHW) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei konsoliderte Nettoumsätze von 0,5% auf 6,27 Milliarden Dollar verzeichnet. Das Unternehmen sah einen Anstieg des verwässerten Nettogewinns pro Aktie um 14,0% auf 3,50 Dollar, während der bereinigte verwässerte Nettogewinn pro Aktie um 12,5% auf 3,70 Dollar stieg. Das EBITDA wuchs um 12,1% auf 1,44 Milliarden Dollar. Die Farbfachgeschäftsgruppe führte mit einer Umsatzsteigerung von 3,5% und einem Segmentgewinnwachstum von 6,8% die Leistung an. Die Umsätze der Konsumgütergruppe fielen um 10,7%, während die Umsätze der Leistungsbeschichtungsgruppe leicht um 0,6% stiegen. Sherwin-Williams hat seine Prognose für das Gesamtjahr 2024 angehoben und rechnet nun mit einem verwässerten Nettogewinn pro Aktie zwischen 10,30 und 10,60 Dollar sowie einem bereinigten verwässerten Nettogewinn pro Aktie von 11,10 bis 11,40 Dollar.
- Consolidated net sales increased 0.5% to $6.27 billion
- Diluted net income per share rose 14.0% to $3.50
- Adjusted diluted net income per share increased 12.5% to $3.70
- EBITDA grew 12.1% to $1.44 billion
- Paint Stores Group net sales up 3.5% with segment profit growth of 6.8%
- Full-year 2024 guidance increased for both diluted and adjusted diluted net income per share
- Consumer Brands Group net sales decreased 10.7%
- Performance Coatings Group sales growth was minimal at 0.6%
- Soft DIY demand in North America affected Consumer Brands Group performance
- Macroeconomic environment softer than anticipated, creating uncertainty for future demand
Insights
The Sherwin-Williams Company's second-quarter financial results for 2024 show essential growth metrics. Key highlights include a 0.5% increase in consolidated net sales to
Furthermore, the 12.1% increase in EBITDA to
The performance across different segments provides insights into Sherwin-Williams' market dynamics. The Paint Stores Group (PSG) saw a
These variations indicate that while the company faces headwinds in some areas, it remains resilient through strategic pricing and cost initiatives. The focus on residential repaint and new residential markets is particularly noteworthy, as these areas are expected to drive future growth. For retail investors, this diversification across segments mitigates risks and underscores the company's strategic positioning in different market environments.
One notable aspect of Sherwin-Williams' strategy is its investment in digital technologies. The financial report highlights continued investments in long-term growth strategies and digital initiatives. These investments are important for enhancing operational efficiency, customer experience and competitive advantage. Given the increasing importance of digital transformation in the business landscape, Sherwin-Williams' commitment to this area may provide substantial long-term benefits.
For retail investors, this focus on digital transformation can be seen as a positive indicator of the company's forward-thinking approach. It demonstrates an understanding of the need to adapt to technological advancements, which could lead to improved productivity and market positioning over time. This strategic focus is likely to bolster investor confidence in Sherwin-Williams' ability to sustain growth in a rapidly evolving market environment.
SUMMARY
- Consolidated net sales increased
0.5% in the quarter to$6.27 billion - Net sales from stores in the Paint Stores Group open more than twelve calendar months increased
2.4% in the quarter
- Net sales from stores in the Paint Stores Group open more than twelve calendar months increased
- Diluted net income per share increased
14.0% to$3.50 $3.07 - Adjusted diluted net income per share increased
12.5% to$3.70 $3.29
- Adjusted diluted net income per share increased
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased
12.1% to$1.44 billion 22.9% of net sales - Increasing full year 2024 diluted net income per share guidance to a range of
$10.30 $10.60 $0.80 - Increasing full year 2024 adjusted diluted net income per share guidance in the range of
$11.10 $11.40
- Increasing full year 2024 adjusted diluted net income per share guidance in the range of
CEO REMARKS
"Led by strong performance in the Paint Stores Group, we continued to execute on our proven strategy across the Company to deliver consolidated sales within our expectations, gross margin expansion, EBITDA growth, and a
"Paint Stores Group sales were up, at the midpoint of our guidance, against a double-digit comparison. Volume increased by a low-single digit percentage, and price realization increased from first quarter levels as expected. We are clearly seeing a return on last year's growth investments in residential repaint, where volume increased by a mid-single digit percentage in a down market. We're also encouraged by growth in new residential, where we expect continued momentum over the back half of the year. Consumer Brands Group sales continued to be impacted by soft North America DIY paint demand. Performance Coatings Group sales were led by growth in Industrial Wood and Coil. Auto Refinish sales increased by low-single digits in
SECOND QUARTER CONSOLIDATED RESULTS
Three Months Ended June 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 6,271.5 | $ 6,240.6 | $ 30.9 | 0.5 % | |||
Income before income taxes | $ 1,173.4 | $ 1,012.1 | $ 161.3 | 15.9 % | |||
As a % of net sales | 18.7 % | 16.2 % | |||||
Net income per share - diluted | $ 3.50 | $ 3.07 | $ 0.43 | 14.0 % | |||
Adjusted net income per share - diluted | $ 3.70 | $ 3.29 | $ 0.41 | 12.5 % | |||
Consolidated Net sales increased primarily due to higher sales volumes in the Paint Stores and Performance Coatings Groups, partially offset by lower sales volumes in the Consumer Brands Group, inclusive of the impact from the divestiture of the
Income before income taxes increased primarily due to benefits from moderating raw material costs and higher Net sales, partially offset by continued investments in long-term growth strategies and digital technologies.
Diluted net income per share included a charge of
SECOND QUARTER SEGMENT RESULTS
Paint Stores Group (PSG) | |||||||
Three Months Ended June 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 3,619.9 | $ 3,498.7 | $ 121.2 | 3.5 % | |||
Same-store sales change (1) | 2.4 % | 9.5 % | |||||
Segment profit | $ 907.1 | $ 849.3 | $ 57.8 | 6.8 % | |||
Reported segment margin | 25.1 % | 24.3 % | |||||
(1) Same-store sales represents net sales from stores open more than twelve calendar months. | |||||||
Net sales in PSG increased primarily due to low-single digit sales volume growth and continued realization of higher selling prices implemented earlier in the year. Net sales grew in all end markets, led by residential repaint, new residential, commercial and protective and marine, with the exception of property maintenance which declined modestly year-over-year. PSG Segment profit increased primarily due to higher Net sales and moderating raw material costs, partially offset by continued investments in long-term growth strategies, including higher employee-related costs.
Consumer Brands Group (CBG) | |||||||
Three Months Ended June 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 844.3 | $ 945.8 | $ (101.5) | (10.7) % | |||
Segment profit | $ 204.4 | $ 110.3 | $ 94.1 | 85.3 % | |||
Reported segment margin | 24.2 % | 11.7 % | |||||
Adjusted segment profit (1) | $ 220.4 | $ 148.3 | $ 72.1 | 48.6 % | |||
Adjusted segment margin | 26.1 % | 15.7 % | |||||
(1) | Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense, restructuring costs and impairment charges. In CBG, Valspar acquisition-related amortization expense was |
Net sales in CBG decreased primarily due to a mid-single digit percentage sales volume decline as a result of soft DIY demand in
Performance Coatings Group (PCG) | |||||||
Three Months Ended June 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 1,806.4 | $ 1,794.9 | $ 11.5 | 0.6 % | |||
Segment profit | $ 301.5 | $ 272.7 | $ 28.8 | 10.6 % | |||
Reported segment margin | 16.7 % | 15.2 % | |||||
Adjusted segment profit (1) | $ 350.5 | $ 322.3 | $ 28.2 | 8.7 % | |||
Adjusted segment margin | 19.4 % | 18.0 % | |||||
(1) | Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense. In PCG, Valspar acquisition-related amortization expense was |
Net sales in PCG increased primarily due to incremental sales of
LIQUIDITY AND CASH FLOW
The Company generated
2024 GUIDANCE
Third Quarter | Full Year | ||||
2024 | 2024 | ||||
Net sales | Up low-single digit % | Up low-single digit % | |||
Effective tax rate | Low twenty percent | ||||
Diluted net income per share | - | ||||
Adjusted diluted net income per share (1) | - | ||||
(1) Excludes |
"The macroeconomic environment has been softer for longer than many economists anticipated at the start of the year, and it is unclear how this trajectory may unfold in our back half," said Ms. Petz. "While we are not immune to market conditions, our focus on providing differentiated solutions to drive our customers' productivity and profitability remains unchanged. We believe in our strategy, we've invested in it, and we expect to drive above market performance. Sherwin-Williams remains well-positioned in each of our targeted markets, and we expect share gains to become more evident over time. We have the right enterprise priorities, disciplined capital allocation, a team that executes better than anyone in our industry, and favorable demand demographics that continue to bode well for long-term value creation.
"We expect third quarter 2024 consolidated net sales to be up a low-single digit percentage compared to the third quarter of 2023. We are updating our guidance for the full year 2024 to reflect our better than expected second quarter diluted net income per share results, tempered by continued demand uncertainty in several end markets. We now expect consolidated net sales to be up a low-single digit percentage compared to full year 2023 and diluted net income per share to be in the range of
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its financial results for the second quarter, and its outlook for the third quarter and full year 2024, at 11:00 a.m. EDT on Tuesday, July 23, 2024. Heidi G. Petz, Sherwin-Williams President and Chief Executive Officer, along with other senior executives, will participate on the call.
The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q2 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.
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®,
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements," as defined under
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
The Sherwin-Williams Company and Subsidiaries | |||||||
Statements of Consolidated Income (Unaudited) | |||||||
(in millions, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 6,271.5 | $ 6,240.6 | $ 11,638.8 | $ 11,683.0 | |||
Cost of goods sold | 3,208.1 | 3,368.3 | 6,044.4 | 6,389.8 | |||
Gross profit | 3,063.4 | 2,872.3 | 5,594.4 | 5,293.2 | |||
Percent to net sales | 48.8 % | 46.0 % | 48.1 % | 45.3 % | |||
Selling, general and administrative expenses | 1,845.7 | 1,760.0 | 3,645.5 | 3,453.0 | |||
Percent to net sales | 29.4 % | 28.2 % | 31.3 % | 29.6 % | |||
Other general income - net | (33.6) | (32.5) | (31.6) | (22.0) | |||
Impairment | — | 34.0 | — | 34.0 | |||
Interest expense | 110.8 | 111.7 | 213.8 | 221.0 | |||
Interest income | (0.9) | (7.2) | (7.0) | (10.7) | |||
Other income - net | (32.0) | (5.8) | (39.7) | (9.0) | |||
Income before income taxes | 1,173.4 | 1,012.1 | 1,813.4 | 1,626.9 | |||
Income taxes | 283.5 | 218.4 | 418.3 | 355.8 | |||
Net income | $ 889.9 | $ 793.7 | $ 1,395.1 | $ 1,271.1 | |||
Net income per common share: | |||||||
Basic | $ 3.55 | $ 3.10 | $ 5.54 | $ 4.96 | |||
Diluted | $ 3.50 | $ 3.07 | $ 5.47 | $ 4.90 | |||
Weighted average shares outstanding: | |||||||
Basic | 251.0 | 256.0 | 251.8 | 256.3 | |||
Diluted | 254.2 | 258.9 | 255.1 | 259.3 | |||
The Sherwin-Williams Company and Subsidiaries | |||||||
Business Segments (Unaudited) | |||||||
(millions of dollars) | |||||||
2024 | 2023 | ||||||
Net | Segment | Net | Segment | ||||
Sales | Profit (Loss) | Sales | Profit (Loss) | ||||
Three Months Ended June 30: | |||||||
Paint Stores Group | $ 3,619.9 | $ 907.1 | $ 3,498.7 | $ 849.3 | |||
Consumer Brands Group | 844.3 | 204.4 | 945.8 | 110.3 | |||
Performance Coatings Group | 1,806.4 | 301.5 | 1,794.9 | 272.7 | |||
Administrative | 0.9 | (239.6) | 1.2 | (220.2) | |||
Consolidated totals | $ 6,271.5 | $ 1,173.4 | $ 6,240.6 | $ 1,012.1 | |||
Six Months Ended June 30: | |||||||
Paint Stores Group | $ 6,492.9 | $ 1,400.3 | $ 6,357.8 | $ 1,376.0 | |||
Consumer Brands Group | 1,655.3 | 357.8 | 1,818.5 | 204.1 | |||
Performance Coatings Group | 3,488.3 | 539.2 | 3,504.7 | 491.6 | |||
Administrative | 2.3 | (483.9) | 2.0 | (444.8) | |||
Consolidated totals | $ 11,638.8 | $ 1,813.4 | $ 11,683.0 | $ 1,626.9 | |||
The Sherwin-Williams Company and Subsidiaries | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(millions of dollars) | |||
June 30, | |||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 200.0 | $ 209.4 | |
Accounts receivable, net | 3,048.1 | 3,117.8 | |
Inventories | 2,289.1 | 2,439.0 | |
Other current assets | 513.4 | 584.4 | |
Total current assets | 6,050.6 | 6,350.6 | |
Property, plant and equipment, net | 3,136.6 | 2,442.5 | |
Goodwill | 7,606.9 | 7,446.5 | |
Intangible assets | 3,692.8 | 3,934.4 | |
Operating lease right-of-use assets | 1,890.8 | 1,869.2 | |
Other assets | 1,356.3 | 1,122.9 | |
Total assets | $ 23,734.0 | $ 23,166.1 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Short-term borrowings | $ 1,358.3 | $ 806.2 | |
Accounts payable | 2,493.9 | 2,489.7 | |
Compensation and taxes withheld | 708.6 | 700.5 | |
Accrued taxes | 347.1 | 308.0 | |
Current portion of long-term debt | 849.7 | 499.5 | |
Current portion of operating lease liabilities | 457.8 | 436.1 | |
Other accruals | 1,251.2 | 1,099.1 | |
Total current liabilities | 7,466.6 | 6,339.1 | |
Long-term debt | 8,130.8 | 9,095.7 | |
Postretirement benefits other than pensions | 133.2 | 139.3 | |
Deferred income taxes | 642.0 | 710.9 | |
Long-term operating lease liabilities | 1,502.9 | 1,503.2 | |
Other long-term liabilities | 2,106.7 | 1,746.8 | |
Shareholders' equity | 3,751.8 | 3,631.1 | |
Total liabilities and shareholders' equity | $ 23,734.0 | $ 23,166.1 | |
Regulation G Reconciliations
Management of the Company utilizes certain financial measures that are not in accordance with
Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. This adjusted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for earnings per share computed in accordance with US 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 US GAAP to adjusted diluted net income per share.
Year Ending | |||||||||||
Three Months Ended | Six Months Ended | December 31, 2024 | |||||||||
June 30, 2024 | June 30, 2024 | (after-tax guidance) | |||||||||
Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | Low | High | ||||
Diluted net income per share | $ 3.50 | $ 5.47 | $ 10.30 | $ 10.60 | |||||||
Acquisition-related amortization expense (1) | $ .26 | $ .06 | $ .20 | $ .51 | $ .12 | $ .39 | $ .80 | $ .80 | |||
Adjusted diluted net income per share | $ 3.70 | $ 5.86 | $ 11.10 | $ 11.40 | |||||||
Three Months Ended | Six Months Ended | Year Ended | |||||||||
June 30, 2023 | June 30, 2023 | December 31, 2023 | |||||||||
Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | |||
Diluted net income per share | $ 3.07 | $ 4.90 | $ 9.25 | ||||||||
Items related to Restructuring Plan: | |||||||||||
Severance and other | $ .06 | $ .03 | .03 | $ .06 | $ .03 | .03 | $ .06 | $ .02 | .04 | ||
Impairment of assets related to | .13 | .08 | .05 | .13 | .08 | .05 | .13 | .08 | .05 | ||
Gain on divestiture of domestic aerosol business | (.08) | (.02) | (.06) | (.08) | (.02) | (.06) | (.08) | (.02) | (.06) | ||
Discrete income tax expense related to | — | — | — | — | — | — | — | (.06) | .06 | ||
Total | .11 | .09 | .02 | .11 | .09 | .02 | .11 | .02 | .09 | ||
Impairment related to trademarks | — | — | — | — | — | — | .09 | .02 | .07 | ||
Devaluation of the Argentine Peso | — | — | — | — | — | — | .16 | — | .16 | ||
Acquisition-related amortization expense (1) | .26 | .06 | .20 | .53 | .11 | .42 | 1.03 | .25 | .78 | ||
Adjusted diluted net income per share | $ 3.29 | $ 5.34 | $ 10.35 | ||||||||
(1) | Acquisition-related amortization expense consists of the amortization of intangible assets related to the Valspar acquisition and is included within Selling, general and administrative expenses. |
(2) | The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. |
Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before income taxes and Interest expense, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management believes enhances investors' understanding of the Company's operating performance. Management considers EBITDA and Adjusted EBITDA useful in understanding the operating performance of the Company. The reader is cautioned that the Company's EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income or Net operating cash as an indicator of operating performance or as a measure of liquidity. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.
(millions of dollars) | |||||
Three Months | Three Months | Six Months | |||
Ended | Ended | Ended | |||
March 31, 2024 | June 30, 2024 | June 30, 2024 | |||
Net income | $ 505.2 | $ 889.9 | $ 1,395.1 | ||
Interest expense | 103.0 | 110.8 | 213.8 | ||
Income taxes | 134.8 | 283.5 | 418.3 | ||
Depreciation | 71.1 | 71.8 | 142.9 | ||
Amortization | 82.1 | 81.5 | 163.6 | ||
EBITDA | $ 896.2 | $ 1,437.5 | $ 2,333.7 | ||
Three Months | Three Months | Six Months | |||
Ended | Ended | Ended | |||
March 31, 2023 | June 30, 2023 | June 30, 2023 | |||
Net income | $ 477.4 | $ 793.7 | $ 1,271.1 | ||
Interest expense | 109.3 | 111.7 | 221.0 | ||
Income taxes | 137.4 | 218.4 | 355.8 | ||
Depreciation | 70.4 | 75.7 | 146.1 | ||
Amortization | 83.7 | 83.0 | 166.7 | ||
EBITDA | $ 878.2 | $ 1,282.5 | $ 2,160.7 | ||
Restructuring expense | 0.9 | 8.7 | 9.6 | ||
Impairment of assets related to | — | 34.0 | 34.0 | ||
Gain on divestiture of domestic aerosol business | — | (20.1) | (20.1) | ||
Adjusted EBITDA | $ 879.1 | $ 1,305.1 | $ 2,184.2 |
The Sherwin-Williams Company and Subsidiaries | |||||||
Selected Information (Unaudited) | |||||||
(millions of dollars, except store count data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Depreciation | $ 71.8 | $ 75.7 | $ 142.9 | $ 146.1 | |||
Capital expenditures | 250.9 | 206.1 | 534.7 | 416.0 | |||
Cash dividends | 178.6 | 156.3 | 361.1 | 312.8 | |||
Amortization of intangibles | 81.5 | 83.0 | 163.6 | 166.7 | |||
Significant components of Other general income - net: | |||||||
Provisions for environmental matters - net | $ (14.1) | $ 0.6 | $ (10.5) | $ 13.3 | |||
Gain on divestiture of domestic aerosol business | — | (20.1) | — | (20.1) | |||
Gain on sale or disposition of assets | (19.8) | (16.2) | (23.2) | (20.8) | |||
Other | 0.3 | 3.2 | 2.1 | 5.6 | |||
Significant components of Other income - net: | |||||||
Net investment gains | $ (3.8) | $ (15.5) | $ (8.9) | $ (18.7) | |||
Net expense from banking activities | 4.4 | 3.9 | 7.7 | 7.8 | |||
Foreign currency transaction related (gains) losses - net | (4.6) | 16.8 | 3.0 | 23.6 | |||
Other (1) | (28.0) | (11.0) | (41.5) | (21.7) | |||
Store Count Data: | |||||||
Paint Stores Group - net new stores | 19 | 16 | 26 | 20 | |||
Paint Stores Group - total stores | 4,720 | 4,644 | 4,720 | 4,644 | |||
Consumer Brands Group - net new stores | 5 | 6 | 7 | 6 | |||
Consumer Brands Group - total stores | 325 | 313 | 325 | 313 | |||
Performance Coatings Group - net new branches | 1 | 4 | 2 | 2 | |||
Performance Coatings Group - total branches | 324 | 319 | 324 | 319 | |||
(1) Consists of items of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company. | |||||||
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SOURCE The Sherwin-Williams Company
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