Sherwin-Williams reports Q2 sales increase
Cleveland-based Sherwin-Williams has reported second-quarter net income of $179.1 million, down 1.4% from $181.7 million in the same quarter of 2010. Net sales for the second quarter ended June 30 totaled $2.36 billion, up 10% from $2.14 billion in the year-ago period.
Net income for the first six months of 2011 was $247.4 million, up 15% from $214.3 million in the same period of 2010. Net sales for this six-month period totaled $4.21 billion, up 13% from $3.71 billion in the year-ago period.
Net sales in the Paint Stores Group increased 4.3% to $1.30 billion in the quarter and 6.3% to $2.23 billion in the first six months of 2011. The company cited selling price increases and improving domestic architectural paint sales to DIY and residential repaint customers for the increase.
Net sales of the Consumer Group decreased 8.4% to $375.6 million in the quarter and decreased 4.5% to $670.6 million in the six months.
Net sales in the Global Finishes Group increased 39.5% to $678.9 million in the quarter and increased 44.2% to $1.31 billion in the six-month period.
“Earnings in the quarter were at the low end of our guidance range due to high raw material costs versus the timing of our price increases,” said Christopher Connor, chairman and CEO. “Although domestic demand remains soft, we continue to invest in selling, general and administrative expenses to maintain customer service and are encouraged by the improvement in domestic DIY and protective and marine sales in the Paint Stores Group.
“For the third quarter, we anticipate our consolidated net sales will increase 10% to 15% compared with last year’s third quarter,” Connor added. “For the full year 2011, we expect consolidated net sales to increase above 2010 levels by a high single digit to low teen percentage.”
Nexxus Lighting awarded two LED patents
Nexxus Lighting Inc. has obtained two U.S. patents on Light Emitting Diode (LED) technology, the company has announced.
US Patent Number 7,974,099 represents the company’s Selective Heat Sink (SHS) process around which it has designed its Array LED replacement lamps and bulbs.
US Patent Number 7,960,921 allows the LED light source to sense ambient thermal changes and adjust current levels and light output to maintain proper thermal performance of the product.
With the issuance of these new patents, Nexxus Lighting said it now holds 37 issued U.S. and foreign patents and 30 patent applications pending related to its Array Lighting and Lumificient product offering.
In addition, the company announced the registration of its Array trademark with the U.S. Patent and Trademark Office. The Array brand, which is sold to both commercial and residential customers, is available at more than 1,100 Lowe’s stores across the United States.
Tractor Supply reports strong Q2
Tractor Supply continues to operate in a fertile market segment that enabled the nation’s largest farm and ranch store chain to harvest record profits during the second quarter.
The Brentwood, Tenn.-based operator of 1,043 stores released results for the quarterly period ended June 25 after the market closed Wednesday and raised its full-year profit forecast. Sales, which increased 10.6% to nearly $1.2 billion, were driven by a 4.6% same-store sales increase and the addition of 16 new stores. Profits rose 18% to $91.2 million, and earnings per share advanced 18.3% to $1.23, four cents better than analysts expected.
“Our ability to achieve record results, despite unfavorable weather patterns, further demonstrates that the structural changes we made to the business over the past few years have been successful,” said Jim Wright, Tractor Supply’s chairman and CEO. “Through excellent seasonal preparedness and execution, we anticipated our customers’ needs, maintained appropriate in-stock positions, and our customers responded positively to our efforts. As a result, we experienced strong sales and earnings growth, positive ticket and traffic, margin expansion and SG&A leverage.”
Based on its second-quarter showing, the company raised its full-year sales and earnings expectations. Net sales are now expected to fall within a range of $4.1 billion to $4.14 billion, compared with earlier expectations in a range of $4.04 billion to $4.11 billion. Same-store sales for the year are now expected to increase 5% to 6% compared with the prior expectation of an increase of 3.5% to 5%. And full-year earnings per share are now anticipated to range between $2.75 to $2.82 compared with prior guidance of $2.62 to $2.70.
“As we look to the remainder of the year, we are optimistic about the momentum we have generated in our business,” Wright said. “To continue growing, we remain focused on executing the merchandise, marketing and operational plans that will enable Tractor Supply to meet our customers’ needs, expand operating margins and improve our processes continuously. Additionally, we will continue to invest in our stores and infrastructure while delivering value to our shareholders.”