Sherwin-Williams reports record sales
With an anticipated acquisition of Valspar in the air, The Sherwin-Williams Company posted consolidated net sales of $2.76 billion in the first quarter, up 7.3% from the same quarter last year.
Net income increased to $239,152,000, up from $164,876,000.
“We are pleased to report record sales and earnings per share from the continued positive sales volume and strong operating results of our Paint Stores Group and operating margin improvement in our Global Finishes Group,” said CEO John G. Morikis.
Net sales in the Paint Stores Group increased 12.1% to $1.81 billion in the quarter due primarily to higher architectural paint sales volume across all end market segments, selling price increases. There are more than 4,100 company-operated stores and facilities selling Sherwin-Williams products
The company said it opened 10 net new store location sin the Paint Store Group during the quarter.
The company announced last year plans to acquire Valspar, a deal that continues to work its way through various regulatory issues.
PPG inches ahead in Q1
PPG had modest growth to report during the first quarter of 2017, though year-over-year adjusted earnings per diluted share came in higher.
Net sales for the quarter were $3.6 billion, up 1% year-over-year. Without the impact of foreign currency translation, sales grew nearly 3%, owing to sales volume growth of 2%.
Meanwhile, net income from continuing operations came in at $334 million, or $1.29 per diluted share. That's down from $337 million last year, or $1.25 per diluted share.
Adjusted net income from continuing operations was $351 million, or $1.35 per diluted share. Last year, adjusted net income from continuing operations was $341 million, or $1.27 per diluted share.
“We continued to deliver higher year-over-year adjusted earnings per diluted share, increasing by more than 6% in the first quarter," said PPG chairman and CEO Michael McGarry. "This growth was despite moderate but uneven global market demand and the unfavorable impact from foreign currency translation."
“In aggregate, sales volumes grew by 2% year-over-year, including broad-based growth across the majority of our European businesses," he said. "Volumes were flat in the U.S. and Canada, reflecting a continuation of uneven end-market demand, with declines in automotive industry production offset by improvements in other end-use markets. Sales volumes continued to expand solidly in emerging regions, led by growth in Latin America and Asia."
“From a business perspective, sales volumes grew more than 5% in our Industrial Coatings segment, more than doubling global industrial production growth rates. Each business in the segment posted solid mid-single-digit percentage growth versus the prior year. Sales volumes were in line with the prior year in our Performance Coatings segment, where significant weakness in global marine coatings continued to offset growth in other businesses,” McGarry said.
“Looking ahead, we expect economic growth to remain modest, particularly in developed regions," he added. "In the U.S. and Canada, aggregate customer demand has yet to match recent economic optimism. We anticipate continued measured growth in Europe across most of our businesses. Growth rates in emerging regions are expected to remain moderate, driven by increased consumer demand in Asia and broad-based expansion across Latin America, including in Brazil, where we see improvements after a likely bottoming."
McGarry also commented on PPG's multiple recent offers to AkzoNobel, which were rejected.
“We remain willing to engage with AkzoNobel and continue to believe strongly that a combination of the two companies is in the best interest of both companies’ stakeholders," he said. "Separately, our pipeline for bolt-on acquisitions remains active in most end-markets and geographies. We will remain focused on maximizing long-term shareholder value."