Sherwin-Williams cuts outlook for first quarter
Cleveland-based paint and coatings giant Sherwin-Williams has cut its first-quarter outlook due to rising costs of raw materials and lower-than-expected sales in the United States. Still, the company said results from its global group will be higher than expected.
In a conference call with investors on the amended sales projections, Sherwin-Williams CEO Christopher Connor said, “The length and severity of the housing market decline has caused a business and segment mix change that is contributing to this earnings shortfall.”
Connor said the company plans job cuts to deal with the lower demand in the DIY market, at distribution centers, manufacturing facilities and stores. While the company originally forecast adding about 100 new stores next year, it also has trimmed that outlook to 40 or 50 net new stores, with some closures planned.
Overall, the company lowered its first-quarter earnings-per-share forecast to between 56 cents and 61 cents, compared with the earlier forecast of 72 cents to 80 cents.
Sherwin-Williams manufactures paint under the Krylon and Dutch Boy brands and operates more than 3,300 company-owned stores in the United States.
Dominion Homes faces Nasdaq delisting
Dublin, Ohio-based home builder Dominion Homes is in the midst of closing a deal to go private but still faces suspension of its stock on the Nasdaq as of March 31, according to a report in BusinessFirst Columbus (Ohio).
The company violated Nasdaq rules when its stock fell, making the company have a total market value under the stock market’s minimum of $5 million. The company also violated rules when it failed to separately announce that company accountants questioned Dominion’s ability to continue due to operating losses and credit problems.
In January, the builder announced plans to go private and buy shareholders out at a cost of 65 cents per share, or $5.5 million cash. The deal means Dominion will be taken private by a group of investors that includes a company with ties to its CEO. The buyout group consists of companies affiliated with Angelo Gordon & Co. and Silver Point Capital and the company’s largest shareholder, BRC Properties.
Dominion chairman and CEO Douglas Borror, also the principal of BRC Properties, will remain in his role with the company.
Biometrics OEM files for bankruptcy
Orlando, Fla.-based original equipment manufacturer (OEM) Sequiam has filed for bankruptcy reorganization in the U.S. Bankruptcy Court for the Middle District of Florida, according to the Orlando Business Journal.
The company recently received a licensing agreement with Black & Decker to provide biometric door locks for the company’s Kwikset division. Still, the manufacturer’s stock dwindled to around 2 cents per share recently.
The company said it accumulated $30 million in debt over the past six years on research and development, according to the report. It also said that an investor failed to honor a March 2007 agreement to advance the company $800,000.
Company founder and CEO Nick VandenBrekel recently resigned for personal reasons.
The company said it will continue to conduct business while the filing and reorganization takes place.