The Sherwin-Williams Company Reports 2024 Third Quarter Financial Results
Sherwin-Williams (NYSE: SHW) reported its Q3 2024 financial results, showing a 0.7% increase in consolidated net sales to $6.16 billion. The company's diluted net income per share rose 7.8% to $3.18, while adjusted diluted net income per share increased 5.3% to $3.37. EBITDA grew 1.2% to $1.28 billion, representing 20.8% of net sales.
The Paint Stores Group saw a 3.2% increase in net sales, driven by low-single digit sales volume growth and higher selling prices. The Consumer Brands Group experienced a 7.5% decrease in net sales due to soft DIY demand in North America. The Performance Coatings Group's net sales remained relatively flat.
Sherwin-Williams reaffirmed its full-year 2024 guidance, expecting diluted net income per share between $10.30 and $10.60, and adjusted diluted net income per share between $11.10 and $11.40. The company anticipates Q4 2024 consolidated net sales to be flat to up a low-single digit percentage compared to Q4 2023.
Sherwin-Williams (NYSE: SHW) ha annunciato i risultati finanziari per il terzo trimestre del 2024, registrando un aumento dello 0,7% nelle vendite nette consolidate, arrivando a $6,16 miliardi. L'utile netto diluito per azione della società è aumentato del 7,8%, raggiungendo $3,18, mentre l'utile netto diluito rettificato per azione è cresciuto del 5,3%, arrivando a $3,37. L'EBITDA è salito dell'1,2% a $1,28 miliardi, rappresentando il 20,8% delle vendite nette.
Il Gruppo dei Negozio di Vernici ha visto un incremento del 3,2% nelle vendite nette, trainato dalla crescita del volume delle vendite in singola cifra e da prezzi di vendita più elevati. Il Gruppo dei Marchi per i Consumatori ha subito una diminuzione del 7,5% nelle vendite nette a causa di una domanda debole nel fai-da-te in Nord America. Le vendite nette del Gruppo dei Rivestimenti per Prestazioni sono rimaste relativamente stabili.
Sherwin-Williams ha confermato le sue previsioni per l'intero anno 2024, aspettandosi un utile netto diluito per azione tra $10,30 e $10,60, e un utile netto diluito rettificato per azione tra $11,10 e $11,40. L'azienda prevede che le vendite nette consolidate del quarto trimestre del 2024 rimarranno stabili o aumenteranno di una percentuale bassa a una cifra rispetto al quarto trimestre del 2023.
Sherwin-Williams (NYSE: SHW) reportó sus resultados financieros para el tercer trimestre de 2024, mostrando un incremento del 0.7% en las ventas netas consolidadas, alcanzando $6.16 mil millones. El ingreso neto diluido por acción de la compañía aumentó un 7.8% a $3.18, mientras que el ingreso neto diluido ajustado por acción creció un 5.3% a $3.37. El EBITDA creció un 1.2% a $1.28 mil millones, representando el 20.8% de las ventas netas.
El Grupo de Tiendas de Pintura vio un aumento del 3.2% en las ventas netas, impulsado por un crecimiento en el volumen de ventas de un solo dígito bajo y precios de venta más altos. El Grupo de Marcas para el Consumidor experimentó una disminución del 7.5% en las ventas netas debido a una demanda débil de bricolaje en Norteamérica. Las ventas netas del Grupo de Recubrimientos de Rendimiento se mantuvieron relativamente estables.
Sherwin-Williams reafirmó su orientación anual para 2024, esperando que el ingreso neto diluido por acción esté entre $10.30 y $10.60, y el ingreso neto diluido ajustado por acción esté entre $11.10 y $11.40. La compañía anticipa que las ventas netas consolidadas del cuarto trimestre de 2024 se mantendrán estables o aumentarán un porcentaje bajo de un solo dígito en comparación con el cuarto trimestre de 2023.
셔윈-윌리엄스(Sherwin-Williams, NYSE: SHW)는 2024년 3분기 재무 실적을 발표하며 통합 순매출이 $6.16억으로 0.7% 증가했다고 밝혔습니다. 회사의 희석 순이익은 주당 7.8% 증가하여 $3.18에 도달하였으며, 조정된 희석 순이익은 주당 5.3% 증가하여 $3.37에 도달하였습니다. EBITDA는 1.2% 증가하여 $1.28억에 도달하였으며, 이는 순매출의 20.8%입니다.
페인트 매장 그룹은 저단위 수치의 판매량 성장과 높은 판매 가격에 힘입어 순매출이 3.2% 증가하였습니다. 소비자 브랜드 그룹은 북미 지역의 DIY 수요 둔화로 인해 순매출이 7.5% 감소하였습니다. 성능 코팅 그룹의 순매출은 비교적 평탄한 수준을 유지하였습니다.
셔윈-윌리엄스는 2024년 전체 연도에 대한 가이던스를 재확인하며, 희석된 주당 순이익이 $10.30과 $10.60 사이, 조정된 희석 주당 순이익도 $11.10과 $11.40 사이일 것으로 예상했습니다. 회사는 2024년 4분기 통합 순매출이 2023년 4분기와 비교하여 평탄하거나 낮은 단위 수치로 증가할 것으로 예상하고 있습니다.
Sherwin-Williams (NYSE: SHW) a annoncé ses résultats financiers pour le troisième trimestre de 2024, montrant une augmentation de 0,7% des ventes nettes consolidées atteignant 6,16 milliards de dollars. Le bénéfice net dilué par action de l'entreprise a augmenté de 7,8% à 3,18 dollars, tandis que le bénéfice net dilué ajusté par action a augmenté de 5,3% à 3,37 dollars. L'EBITDA a augmenté de 1,2% à 1,28 milliard de dollars, représentant 20,8% des ventes nettes.
Le Groupe des Magasins de Peinture a enregistré une augmentation des ventes nettes de 3,2 %, soutenue par une croissance modeste du volume des ventes et des prix de vente plus élevés. Le Groupe des Marques de Consommation a connu une diminution de 7,5 % de ses ventes nettes en raison d'une demande faible pour le bricolage en Amérique du Nord. Les ventes nettes du Groupe des Revêtements de Performance sont restées relativement stables.
Sherwin-Williams a réaffirmé ses prévisions pour l'année 2024, s'attendant à un bénéfice net dilué par action compris entre 10,30 $ et 10,60 $, et un bénéfice net dilué ajusté par action compris entre 11,10 $ et 11,40 $. L'entreprise anticipe que les ventes nettes consolidées pour le quatrième trimestre 2024 resteront stables ou augmenteront d'un faible pourcentage à un chiffre par rapport au quatrième trimestre 2023.
Sherwin-Williams (NYSE: SHW) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht. Das Unternehmen berichtete von einem Anstieg der konsolidierten Nettoumsätze um 0,7% auf 6,16 Milliarden USD. Das verwässerte Nettoergebnis pro Aktie stieg um 7,8% auf 3,18 USD, während das bereinigte verwässerte Nettoergebnis pro Aktie um 5,3% auf 3,37 USD zunahm. Das EBITDA wuchs um 1,2% auf 1,28 Milliarden USD, was 20,8% des Nettoumsatzes ausmacht.
Die Farbengruppen verzeichneten einen Anstieg der Nettoumsätze um 3,2%, bedingt durch ein Wachstum des Verkaufsvolumens im niedrigen einstelligen Bereich und höhere Verkaufspreise. Die Consumer Brands Group erlebte einen Rückgang der Nettoumsätze um 7,5% aufgrund einer schwachen DIY-Nachfrage in Nordamerika. Die Nettoumsätze der Performance Coatings Group blieben relativ stabil.
Sherwin-Williams bestätigte seine Prognose für das gesamte Jahr 2024 und erwartet ein verwässertes Nettoergebnis pro Aktie zwischen 10,30 USD und 10,60 USD und ein bereinigtes verwässertes Nettoergebnis pro Aktie zwischen 11,10 USD und 11,40 USD. Das Unternehmen erwartet für das vierte Quartal 2024 eine Stagnation der konsolidierten Nettoumsätze oder einen Anstieg im niedrigen einstelligen Bereich im Vergleich zum vierten Quartal 2023.
- Consolidated net sales increased 0.7% to $6.16 billion
- Diluted net income per share rose 7.8% to $3.18
- Adjusted diluted net income per share increased 5.3% to $3.37
- EBITDA grew 1.2% to $1.28 billion
- Paint Stores Group net sales increased 3.2%
- Strong cash generation enabled $631 million return to shareholders through dividends and share repurchases
- Consumer Brands Group net sales decreased 7.5% due to soft DIY demand in North America
- Performance Coatings Group net sales remained flat
- Unfavorable foreign currency translation impacted sales negatively by approximately 1.0%
- Paint Stores Group segment profit decreased 2.4% due to increased costs and investments
Insights
Sherwin-Williams' Q3 2024 results show modest growth amid challenging market conditions. Key highlights include:
- Consolidated net sales up
0.7% to$6.16 billion - Diluted EPS increased
7.8% to$3.18 - EBITDA grew
1.2% to$1.28 billion
The Paint Stores Group led growth with a
Management's decision to maintain full-year guidance (
Investors should monitor the impact of recent hurricanes and potential extended holiday shutdowns by industrial customers, which could affect Q4 performance.
Sherwin-Williams' Q3 results reveal interesting market dynamics:
- Professional markets outperforming DIY segment
- Protective & marine coatings showing strong growth
- Residential repaint growing despite market downturn
- New residential construction performing better than expected
- Packaging business regaining market share
The divergence between professional and DIY markets suggests a shift in consumer behavior, possibly due to economic pressures. The company's focus on professional segments and value-added services appears to be a sound strategy in this environment.
The growth in protective & marine and packaging segments indicates potential opportunities in industrial and infrastructure markets. However, the soft North American DIY market and choppy demand in some industrial sectors warrant caution.
The company's proactive investments in stores, sales reps and digital capabilities could position it well for future growth, but may pressure short-term margins. The effectiveness of these investments in driving "sustained and profitable above-market growth" will be important to watch in coming quarters.
SUMMARY
- Consolidated net sales increased
0.7% in the quarter to$6.16 billion - Net sales from stores in the Paint Stores Group open more than twelve calendar months increased
2.2% 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
7.8% to$3.18 $2.95 - Adjusted diluted net income per share increased
5.3% to$3.37 $3.20
- Adjusted diluted net income per share increased
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased
1.2% to$1.28 billion 20.8% of net sales - Reaffirming full year 2024 diluted net income per share guidance in the range of
$10.30 $10.60 $0.80 - Reaffirming full year 2024 adjusted diluted net income per share guidance in the range of
$11.10 $11.40
- Reaffirming full year 2024 adjusted diluted net income per share guidance in the range of
CEO REMARKS
"Sherwin-Williams grew sales, expanded gross margin, and increased EBITDA and adjusted diluted net income per share despite continued choppiness in the demand environment," said President and Chief Executive Officer, Heidi G. Petz. "Strong cash generation in the quarter enabled us to return
"In Paint Stores Group, growth was led by a high-single digit increase in protective & marine. Our prior investments in residential repaint continued to drive mid-single digit growth in a down market. New residential grew at a similar rate as anticipated. The Group also announced a
THIRD QUARTER CONSOLIDATED RESULTS
Three Months Ended September 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 6,162.5 | $ 6,116.7 | $ 45.8 | 0.7 % | |||
Income before income taxes | $ 1,022.8 | $ 1,009.0 | $ 13.8 | 1.4 % | |||
As a % of net sales | 16.6 % | 16.5 % | |||||
Net income per share - diluted | $ 3.18 | $ 2.95 | $ 0.23 | 7.8 % | |||
Adjusted net income per share - diluted | $ 3.37 | $ 3.20 | $ 0.17 | 5.3 % | |||
Consolidated Net sales increased primarily due to higher sales in the Paint Stores Group and the impact from the acquisition in 2023. These increases were partially offset by lower sales in the Consumer Brands and Performance Coatings Groups as well as approximately
Income before income taxes increased primarily due to higher Net sales and lower provisions for environmental matters recorded in the Administrative function, partially offset by continued investments in the Paint Stores Group and digital technologies.
Diluted net income per share included a charge of
THIRD QUARTER SEGMENT RESULTS
Paint Stores Group (PSG)
Three Months Ended September 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 3,650.2 | $ 3,537.1 | $ 113.1 | 3.2 % | |||
Same-store sales change (1) | 2.2 % | 3.0 % | |||||
Segment profit | $ 895.9 | $ 917.5 | $ (21.6) | (2.4) % | |||
Reported segment margin | 24.5 % | 25.9 % | |||||
(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 increased in most professional customer end markets, led by protective and marine, residential repaint and new residential. PSG Segment profit decreased primarily due to increased costs to support higher sales and continued investments in long-term growth strategies, including higher employee-related costs, partially offset by higher Net sales.
Consumer Brands Group (CBG)
Three Months Ended September 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 790.5 | $ 854.8 | $ (64.3) | (7.5) % | |||
Segment profit | $ 165.5 | $ 101.6 | $ 63.9 | 62.9 % | |||
Reported segment margin | 20.9 % | 11.9 % | |||||
Adjusted segment profit (1) | $ 181.4 | $ 117.6 | $ 63.8 | 54.3 % | |||
Adjusted segment margin | 22.9 % | 13.8 % | |||||
(1) Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense. In CBG, Valspar acquisition-related amortization expense was | |||||||
Net sales in CBG decreased primarily as a result of soft DIY demand in
Performance Coatings Group (PCG)
Three Months Ended September 30, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 1,720.0 | $ 1,724.2 | $ (4.2) | (0.2) % | |||
Segment profit | $ 259.7 | $ 279.7 | $ (20.0) | (7.2) % | |||
Reported segment margin | 15.1 % | 16.2 % | |||||
Adjusted segment profit (1) | $ 308.9 | $ 329.4 | $ (20.5) | (6.2) % | |||
Adjusted segment margin | 18.0 % | 19.1 % | |||||
(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 were effectively flat as a result of sales volume growth, inclusive of the acquisition in 2023, being fully offset by unfavorable foreign currency translation. Performance was led by Packaging, which increased in all regions, Coil and Industrial Wood. PCG Segment profit decreased primarily as a result of lower sales in
LIQUIDITY AND CASH FLOW
The Company generated
2024 GUIDANCE
Fourth Quarter | Full Year | ||||
2024 | 2024 | ||||
Net sales | Flat to up low-single digit % | Flat to up low-single digit % | |||
Effective tax rate | Low twenty percent | ||||
Diluted net income per share | - | ||||
Adjusted diluted net income per share (1) | - | ||||
(1) Excludes | |||||
"In what remains a tough macroeconomic environment, our strategy continues to be providing our customers with differentiated solutions that make them more productive and profitable," said Ms. Petz. "We are confident the growth and efficiency investments we have made will enable us to continue outperforming the market. Our team is focused, determined and experienced, and we will continue to aggressively pursue above market growth while controlling what we can control.
"In our pro architectural business, demand remains variable by end market, with no impact to date from recent interest rate cuts. North American DIY demand remains weak driven by inflation and higher consumer debt levels. In our industrial businesses, demand remains choppy by end market and region. Against this backdrop, we expect fourth quarter 2024 consolidated net sales to be flat to up a low-single digit percentage compared to the fourth quarter of 2023.
"We are maintaining our previous full year earnings guidance, recognizing the current range is wider than typical entering a fourth quarter. This range accounts for several variables that are hard to forecast precisely, including demand related to recovery from hurricanes Helene and Milton, and the potential for extended holiday shutdowns by industrial customers. Specifically, we expect full year 2024 sales to be flat to up a low-single digit percentage compared to full year 2023. We continue to guide to full year 2024 diluted net income per share of
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its financial results for the third quarter, and its outlook for the fourth quarter and full year 2024, at 10:00 a.m. EDT on Tuesday, October 22, 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 Q3 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 September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 6,162.5 | $ 6,116.7 | $ 17,801.3 | $ 17,799.7 | |||
Cost of goods sold | 3,135.0 | 3,200.5 | 9,179.4 | 9,590.3 | |||
Gross profit | 3,027.5 | 2,916.2 | 8,621.9 | 8,209.4 | |||
Percent to net sales | 49.1 % | 47.7 % | 48.4 % | 46.1 % | |||
Selling, general and administrative expenses | 1,893.7 | 1,756.5 | 5,539.2 | 5,209.5 | |||
Percent to net sales | 30.7 % | 28.7 % | 31.1 % | 29.3 % | |||
Other general expense (income) - net | 0.7 | 61.9 | (30.9) | 39.9 | |||
Impairment | — | — | — | 34.0 | |||
Interest expense | 103.4 | 101.9 | 317.2 | 322.9 | |||
Interest income | (2.6) | (5.1) | (9.6) | (15.8) | |||
Other expense (income) - net | 9.5 | (8.0) | (30.2) | (17.0) | |||
Income before income taxes | 1,022.8 | 1,009.0 | 2,836.2 | 2,635.9 | |||
Income taxes | 216.6 | 247.5 | 634.9 | 603.3 | |||
Net income | $ 806.2 | $ 761.5 | $ 2,201.3 | $ 2,032.6 | |||
Net income per common share: | |||||||
Basic | $ 3.22 | $ 2.98 | $ 8.76 | $ 7.94 | |||
Diluted | $ 3.18 | $ 2.95 | $ 8.65 | $ 7.85 | |||
Weighted average shares outstanding: | |||||||
Basic | 250.6 | 255.1 | 251.4 | 255.9 | |||
Diluted | 253.9 | 258.4 | 254.6 | 258.8 | |||
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 September 30: | |||||||
Paint Stores Group | $ 3,650.2 | $ 895.9 | $ 3,537.1 | $ 917.5 | |||
Consumer Brands Group | 790.5 | 165.5 | 854.8 | 101.6 | |||
Performance Coatings Group | 1,720.0 | 259.7 | 1,724.2 | 279.7 | |||
Administrative | 1.8 | (298.3) | 0.6 | (289.8) | |||
Consolidated totals | $ 6,162.5 | $ 1,022.8 | $ 6,116.7 | $ 1,009.0 | |||
Nine Months Ended September 30: | |||||||
Paint Stores Group | $ 10,143.1 | $ 2,296.2 | $ 9,894.9 | $ 2,293.5 | |||
Consumer Brands Group | 2,445.8 | 523.3 | 2,673.3 | 305.7 | |||
Performance Coatings Group | 5,208.3 | 798.9 | 5,228.9 | 771.3 | |||
Administrative | 4.1 | (782.2) | 2.6 | (734.6) | |||
Consolidated totals | $ 17,801.3 | $ 2,836.2 | $ 17,799.7 | $ 2,635.9 | |||
The Sherwin-Williams Company and Subsidiaries | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(millions of dollars) | |||
September 30, | |||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 238.2 | $ 503.4 | |
Accounts receivable, net | 2,973.4 | 2,940.9 | |
Inventories | 2,267.4 | 2,244.3 | |
Other current assets | 495.3 | 510.2 | |
Total current assets | 5,974.3 | 6,198.8 | |
Property, plant and equipment, net | 3,344.7 | 2,580.6 | |
Goodwill | 7,657.0 | 7,412.3 | |
Intangible assets | 3,656.9 | 3,824.0 | |
Operating lease right-of-use assets | 1,890.0 | 1,874.7 | |
Other assets | 1,445.4 | 1,114.1 | |
Total assets | $ 23,968.3 | $ 23,004.5 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Short-term borrowings | $ 915.5 | $ 338.6 | |
Accounts payable | 2,537.7 | 2,424.8 | |
Compensation and taxes withheld | 726.0 | 768.3 | |
Accrued taxes | 214.5 | 379.8 | |
Current portion of long-term debt | 1,048.9 | 1,098.2 | |
Current portion of operating lease liabilities | 462.8 | 441.1 | |
Other accruals | 1,312.7 | 1,172.4 | |
Total current liabilities | 7,218.1 | 6,623.2 | |
Long-term debt | 8,175.3 | 8,499.2 | |
Postretirement benefits other than pensions | 133.2 | 139.3 | |
Deferred income taxes | 631.7 | 648.4 | |
Long-term operating lease liabilities | 1,496.5 | 1,502.9 | |
Other long-term liabilities | 2,157.4 | 1,811.5 | |
Shareholders' equity | 4,156.1 | 3,780.0 | |
Total liabilities and shareholders' equity | $ 23,968.3 | $ 23,004.5 | |
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. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company's revenue generation, the related revenue is not excluded. 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 | Nine Months Ended | December 31, 2024 | |||||||||
September 30, 2024 | September 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 | $ 3.18 | $ 8.65 | $ 10.30 | $ 10.60 | |||||||
Acquisition-related amortization expense (2) | $ .26 | $ .07 | $ .19 | $ .77 | $ .18 | $ .59 | $ .80 | $ .80 | |||
Adjusted diluted net income per share | $ 3.37 | $ 9.24 | $ 11.10 | $ 11.40 | |||||||
Three Months Ended | Nine Months Ended | Year Ended | |||||||||
September 30, 2023 | September 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 | $ 2.95 | $ 7.85 | $ 9.25 | ||||||||
Items related to Restructuring Plan: | |||||||||||
Severance and other | $ — | $ — | — | $ .06 | $ .02 | .04 | $ .06 | $ .02 | .04 | ||
Impairment of assets related to | — | — | — | .13 | .08 | .05 | .13 | .08 | .05 | ||
Gain on divestiture of domestic aerosol business | — | — | — | (.08) | (.02) | (.06) | (.08) | (.02) | (.06) | ||
Discrete income tax expense related to | — | (.06) | .06 | — | (.06) | .06 | — | (.06) | .06 | ||
Total | — | (.06) | .06 | .11 | .02 | .09 | .11 | .02 | .09 | ||
Impairment related to trademarks | — | — | — | — | — | — | .09 | .02 | .07 | ||
Devaluation of the Argentine Peso | — | — | — | — | — | — | .16 | — | .16 | ||
Acquisition-related amortization expense (2) | .25 | .06 | .19 | .78 | .18 | .60 | 1.03 | .25 | .78 | ||
Adjusted diluted net income per share | $ 3.20 | $ 8.54 | $ 10.35 | ||||||||
(1) | The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. |
(2) | Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives. |
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 further believes enhances investors' understanding of the Company's operating performance. 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 | Three Months | Nine Months | ||||
Ended | Ended | Ended | Ended | ||||
March 31, 2024 | June 30, 2024 | September 30, 2024 | September 30, 2024 | ||||
Net income | $ 505.2 | $ 889.9 | $ 806.2 | $ 2,201.3 | |||
Interest expense | 103.0 | 110.8 | 103.4 | 317.2 | |||
Income taxes | 134.8 | 283.5 | 216.6 | 634.9 | |||
Depreciation | 71.1 | 71.8 | 74.4 | 217.3 | |||
Amortization | 82.1 | 81.5 | 81.2 | 244.8 | |||
EBITDA | $ 896.2 | $ 1,437.5 | $ 1,281.8 | $ 3,615.5 | |||
Three Months | Three Months | Three Months | Nine Months | ||||
Ended | Ended | Ended | Ended | ||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | September 30, 2023 | ||||
Net income | $ 477.4 | $ 793.7 | $ 761.5 | $ 2,032.6 | |||
Interest expense | 109.3 | 111.7 | 101.9 | 322.9 | |||
Income taxes | 137.4 | 218.4 | 247.5 | 603.3 | |||
Depreciation | 70.4 | 75.7 | 71.9 | 218.0 | |||
Amortization | 83.7 | 83.0 | 83.5 | 250.2 | |||
EBITDA | $ 878.2 | $ 1,282.5 | $ 1,266.3 | $ 3,427.0 | |||
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 | $ 1,266.3 | $ 3,450.5 |
The Sherwin-Williams Company and Subsidiaries | |||||||
Selected Information (Unaudited) | |||||||
(millions of dollars, except store count data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Depreciation | $ 74.4 | $ 71.9 | $ 217.3 | $ 218.0 | |||
Capital expenditures | 235.3 | 152.9 | 770.0 | 568.9 | |||
Cash dividends | 182.5 | 155.6 | 543.6 | 468.4 | |||
Amortization of intangibles | 81.2 | 83.5 | 244.8 | 250.2 | |||
Significant components of Other general expense (income) - net: | |||||||
Provisions for environmental matters - net | $ 2.8 | $ 39.4 | $ (7.7) | $ 52.7 | |||
Gain on divestiture of domestic aerosol business | — | — | — | (20.1) | |||
(Gains) losses on sale or disposition of assets | (2.0) | 12.7 | (25.2) | (8.1) | |||
Other | (0.1) | 9.8 | 2.0 | 15.4 | |||
Significant components of Other expense (income) - net: | |||||||
Net investment gains | $ (1.9) | $ (0.5) | $ (10.8) | $ (19.2) | |||
Net expense from banking activities | 3.6 | 3.1 | 11.3 | 10.9 | |||
Foreign currency transaction related losses - net | 6.8 | 1.1 | 9.8 | 24.7 | |||
Other (1) | 1.0 | (11.7) | (40.5) | (33.4) | |||
Store Count Data: | |||||||
Paint Stores Group - net new stores | 19 | 16 | 45 | 36 | |||
Paint Stores Group - total stores | 4,739 | 4,660 | 4,739 | 4,660 | |||
Consumer Brands Group - net new stores | 3 | 3 | 10 | 9 | |||
Consumer Brands Group - total stores | 328 | 316 | 328 | 316 | |||
Performance Coatings Group - net new branches | — | (1) | 2 | 1 | |||
Performance Coatings Group - total branches | 324 | 318 | 324 | 318 | |||
(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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