Sherwin-Williams rakes in more cash (but not earnings) in Q1
The Sherwin-Williams Company announced mixed results Thursday for the first quarter of 2014, which saw greater top-line revenue for the company that wasn’t matched by its net income performance.
Net sales for the three months ended March 31 were $2.37 billion, up 9.2% from $2.17 billion the year before. Sherwin-Williams attributed the increase primarily to higher paint sales volume in the Paint Stores Group and acquisitions, which accounted for 4.5% of the increase alone. Net sales in the Paint Stores Group increased 16.4% to $1.36 billion.
In terms of net income, the company pulled in $115.5 million, down from $116.2 million in 2013.
"The Paint Stores Group architectural volume growth was strong across all end market segments," said chairman and CEO Christopher M. Connor. "The Comex acquisition performed better than expected in the quarter. Although the impact of harsh weather on domestic sales in the quarter was modest, it did disrupt supply chain operations and service driving up costs in the Consumer Group. Our Global Finishes Group continues to improve its operating margins through improved operating efficiencies. The Latin America Coatings Group despite the continued difficult environment is minimizing the impact on its core operating margins through selling price increases and good cost control."
Connor added that the company opened 17 new locations in the Paint Stores Group, and expects to open 80 to 90 new stores this year in total.
Sherwin-Williams recently canceled its bid for Comex Mexico, but it did complete the successful acquisition of the U.S. and Canadian Comex divisions. Connor was referring to those business units in his quote.
UFPI’s Q1 sales flat, though earnings up 38%
Universal Forest Products, Inc. announced its first-quarter 2014 results Wednesday, which showed marked improvement in bottom-line earnings but relatively stagnant revenues.
Net sales for the quarter came in at $554.0 million, barely changed since last year’s $554.5 million. Net earnings for the peiod came in at $7.2 million, which is up 38% year-over-year.
"We focused successfully on improving the performance of our framing operations, and that was the primary driver of our increased profitability in the first quarter," said CEO Matthew J. Missad. "We remain well-positioned in construction, and in each of our business markets, for the rebound we believe will occur as the weather breaks."
Missad added that a "historically brutal winter" affected businesses throughout the country, resulting in 80 plant closure days at the company’s various North American locations.
Hines expansion continues in Northern, Ill.
Buffalo Grove, Ill.-based Hines Supply, which announced two expansions in the last week, has announced another.
Mike’s Deck Centers in Montgomery and St. Charles, Ill will join Hines, a division of U.S. LBM.
Founded by Mike French, Mike’s Deck Center offers serves professional contractors throughout Chicago and the western suburbs. Their 800 sq. ft. showroom features displays with the latest decking, railing, lighting, fasteners, furniture, tools, and more.
“We are excited to partner with the Hines team,” said French. “This opportunity gives Mike’s Deck Center the resources and manpower needed to fulfill our goal of becoming the best Outdoor Living Centers in Chicagoland. We are committed to providing the highest level of service and knowledge to contractors and homeowners.”
“Mike’s Deck Center has a strong following with the professional deck builder” said Doug Jones, Hines Supply President. “They provide customers with an unparalleled selection and superior customer service. Our partnership with Mike’s Deck Center gives them the additional resources, logistics, and expertise to expand their business. I look forward to working with Mike and his team ensuring we are the trusted resource to help our customers build their business.”
Hines Supply also operates building supply centers in Alsip, Grayslake, Hampshire, and Wheaton; a Millwork facility in Kirkland; Window, Door and Cabinetry showroom in Buffalo Grove; and a Roofing & Siding location in Warrenville.
Founded in 1892, Hines Supply is headquartered in Buffalo Grove, Illinois. The company operates numerous locations servicing homebuilders and professional remodelers throughout the state of Illinois, lower Wisconsin, and Northern Indiana.
US LBM, recipient of the 2013 HCN Pro Dealer of the Year Award, is a collection of ten leading building material distributors serving the Midwest, Northeast, Southeast, and Mid-Atlantic in nine states with more than 55 locations.