Sherwin-Williams expects lower net sales in the 2008 fiscal year, a reversal of a formerly anticipated sales gain in the low single digits.
The “significantly lower expectation” of per-share income is due to the “expected continuation of the unprecedented downturn in the U.S. housing market and rapidly rising raw material cost increases.”
Sherwin-Williams is doubly hurt by rising petroleum costs, because it uses petroleum both for shipping needs and raw materials for paint products.
For the same reasons, the company also lowered its second-quarter earnings-per-share guidance. Sherwin-Williams plans a conference call to discuss the issues later today.
In other company news, the Cleveland-based retailer and manufacturer announced a $50,000 grant to the Cleveland Housing Network (CHN).
The city of Cleveland, which has struggled with poverty- and housing-related issues even before the downturn in the housing market, utilizes the CHN to offer lease-purchase agreements to low-income residents. Last week, Sherwin-Williams CEO Chris Connor and 30 company associates helped paint and rehab a home as part of the CHN lease purchase program.