Sherwin-Williams is reporting sales and profit growth during the first quarter, as price increases and steady demand from professional customers helped offset continued weakness across most end markets.
Net sales rose 6.8% to US$5.67 billion for the three months ended March 31, while net income increased to US$534.7 million, or US$2.15 per share, from US$503.9 million, or US$2 per share, a year earlier.
Adjusted earnings — which exclude certain one-time costs such as acquisition-related expenses — rose to US$2.35 per share from US$2.25.
“Sherwin-Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets,” said CEO Heidi Petz.
Growth varied across the business. The paint stores group, the company’s largest division, saw sales rise 3.7%, with same-store sales up 2.4%, a measure that reflects underlying demand by excluding newer locations.
Professional customers, particularly in repainting and maintenance, continued to spend. New residential construction remained weak as did consumer demand, especially from do-it-yourself customers -- a trend that has persisted for several quarters.
The consumer brands group reported a sharp increase in sales, driven largely by an acquisition in Brazil and stronger international demand. Gains were partly offset by weaker North American sales.
The performance coatings group posted moderate growth, supported by automotive refinish and general manufacturing activity.
“Our growth investments and relentless focus on new accounts and share of wallet continued to yield results, as sales exceeded guidance on a consolidated basis and in all three reportable segments,” Petz said.
The company said gross margin — a measure of how much profit it keeps after production costs — expanded during the quarter, despite the impact of the Suvinil acquisition.
“Net income, adjusted earnings per share and EBITDA all increased over the prior year quarter,” Petz said.
Sherwin-Williams maintained its full-year outlook, expecting low- to mid-single-digit sales growth and adjusted earnings between US$11.50 and US$11.90 per share.
It said selling, general and administrative costs rose by a mid-single digit percentage in the quarter, but it continues to expect a low-single digit increase for the full year.
“Our global team continues to execute our strategy, delivering reliability and consistency for our customers while focusing on what we can control,” Petz said.
Sherwin-Williams returned about US$772.7 million to shareholders during the quarter through dividends and share buybacks.
