Sherwin-Williams 3Q profit slips on weak sales

posted: 38 DAYS 8 HOURS AGO

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CLEVELAND -Paint maker Sherwin-Williams Co. on Tuesday said weaker paint sales to residential, commercial, consumer and global customers drove down third-quarter earnings, but stricter cost controls helped soften the blow.

"We have seen limited improvements in DIY and other end-user areas of our business but not to an extent that indicates any significant recovery or sustainable growth from the depressed markets of the past year," CEO Christopher Connor said in a statement.

Quarterly earnings fell to $175.2 million, or $1.51 per share, from $177.1 million, or $1.50 per share. The company bought back nearly 3.9 million shares of its stock in the quarter, which helped boost earnings per share.

Analysts polled by Thomson Reuters estimated profit of $1.35 per share, on average.

Revenue fell 12 percent to $2 billion from $2.27 billion. Analysts forecast revenue of $2.01 billion.

"While we remain disappointed with our sales, we are pleased with our earnings performance in the quarter resulting from the actions that have taken place within our operating segments to control costs, improve efficiencies, and maintain superior customer service," said Connor.

He noted that the company's paint stores group managed to control selling, general and administrative expenses "without sacrificing their ability to deliver superior customer service or focus on gaining business in all markets and product lines."

He also added that Sherwin-Williams' consumer group offset some softness in its markets with new product introductions.

For the full year, the company expects net income in a range between $3.52 per share and $3.72 per share. Analysts forecast earnings of $3.64 per share, on average.

Shares of Sherwin-Williams fell $3.27, or 5.2 percent, to $59.80 in morning trading. The stock has ranged from $42.19 to $64.13 over the past year.

2009-10-20 11:20:36