Sherwin-Williams Co. reported net sales of $2.14 billion for its first fiscal quarter, a 15.1% rise over net sales in the same quarter of 2011. The increase was attributed primarily to higher paint sales volume and selling price increases.
Net sales in the Paint Stores Group jumped 20.9% to $1.12 billion in the quarter due primarily to higher paint sales volume across all end market segments and selling price increases. Net sales from stores open for more than 12 calendar months increased 20.4% in the quarter over last year’s comparable period. Paint Stores Group segment profit rose $43.9 million to $112.7 million in the quarter from $68.9 million last year. Segment profit as a percent to net sales increased in the quarter to 10.0% from 7.4% last year.
Net sales of the Consumer Group increased 8.6% to $320.4 million in the quarter due primarily to selling price increases and higher sales volume. Segment profit increased to $55.3 million in the quarter from $41.1 million last year due primarily to selling price increases and good cost control partially offset by increasing raw material costs. As a percent to net external sales, segment profit increased in the first quarter to 17.3% from 13.9% a year ago.
Commenting on the financial results, chairman and CEO Christopher Connor said: “We are pleased to report record sales and earnings per share in the first quarter on strong sales and operating results of our Paint Stores Group and operating profit increases across the remaining operating segments. All our operating segments grew sales volume and operating profit as a percent to sales in the quarter. The Paint Stores Group volume growth was strong across all end market segments. Our Consumer Group improved their operating results through disciplined cost control and selling price increases.”
Connor added that the Cleveland-based company plans to further invest in the business by opening five net new locations in the Paint Stores Group. “For the year, we expect our Paint Stores Group to open 60 to 65 new stores,” he said. “In the second quarter of 2012, we anticipate our consolidated net sales will increase ten to fifteen percent.”
Founded in 1866, The Sherwin-Williams Co. is a global supplier of coatings and related products to professional, industrial, commercial, and retail customers. The company manufactures products under well-known brands such as Sherwin-Williams, Dutch Boy. Krylon, Minwax, Thompson’s Water Seal and many more. Sherwin-Williams branded products are sold exclusively through a chain of more than 4,000 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.