Sherwin-Williams settles IRS tax dispute
Cleveland-based Sherwin-Williams reached a settlement of the Internal Revenue Service’s audit of Sherwin-Williams’ employee stock ownership plan ("ESOP") that will lead to a charge of $75 million.
Sherwin-Williams has fully resolved all IRS issues for the 2003 through 2009 tax years, the company said.
Sherwin-Williams received a Notice of Proposed Adjustment from the IRS on May 20, 2011, challenging the ESOP-related federal income tax deductions claimed by Sherwin-Williams and proposing substantial excise taxes and penalties.
The settlement, which resolves all ESOP-related tax issues (including interest), will result in an after-tax charge relating to federal and state incomes taxes totaling approximately $75 million ($0.72 per diluted common share). The settlement also includes a reduction in shareholders’ equity of approximately $51.2 million in Sherwin-Williams’ fourth quarter.
These amounts were not included in Sherwin-Williams’ previous fourth-quarter and full-year 2011 earnings guidance.
Masco swings to profit in third quarter
Taylor, Mich.-based Masco Corp. reported third-quarter sales of $2 billion, up 3% from the same quarter last year. Masco’s net income was $36 million for the quarter, compared with a net loss of $5 million in the third quarter of 2010.
CEO Tim Wadhams said the top line was lifted by "strong sales of plumbing-related products driven by share gains of our Hansgrohe and Delta brands, share gains in our Installation segment and foreign currency translation."
Growth for the home products manufacturer came despite near-record lows in residential construction and the general deferral of big-ticket items for the home, Wadhams said. The company expects housing starts will finish the year at about the same level as 2010, when the Commerce Department’s tally was 585,000.
"Longer-term, however, we are confident about the fundamentals for the new-home construction and home improvement markets, and we are optimistic about the future," Wadhams said.
Green-building webinar invites Dummies, and others
Eric Corey Freed, author of "Green Building & Remodeling for Dummies," will kickoff the GreenExpo365.com November virtual "Live Event" with an interactive webinar, Nov. 1, 8:30 a.m. Pacific/11:30 a.m. Eastern.
During the live session, "How Fake Buildings Are Destroying Our Future," Freed will examine the current layout of our car-centric built environment through the lens of sustainability and share his thoughts on ways to transform urban sprawl into sustainable neighborhoods. Participants can attend additional live webinars and view the latest green building products in a virtual tradeshow format.
Registration is free and can be completed at GreenExpo365.com