SHW

Sherwin-Williams (SHW) Reports 0.7% Sales Increase in Q3 2024

Sherwin-Williams, a leading paint and coatings company, has recently released its 10-Q report. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group, and serves professional, industrial, commercial, and retail customers across North and South America, the Caribbean, Europe, Asia, and Australia. In the third quarter of 2024, the company reported consolidated net sales of $6.163 billion, a 0.7% increase from the same period last year.

The Paint Stores Group segment saw a 3.2% increase in net sales, driven by sales volume growth and higher selling prices. Additionally, net sales from stores open for more than twelve months increased by 2.2% during the quarter. In contrast, the Consumer Brands Group segment experienced a 7.5% decrease in net sales, primarily due to soft DIY demand in North America and unfavorable foreign currency translation. The Performance Coatings Group segment reported effectively flat net sales, with sales volume growth offset by unfavorable foreign currency translation.

In terms of income, Sherwin-Williams reported a 7.8% increase in diluted net income per share to $3.18 in the third quarter of 2024, compared to $2.95 per share in the same period in 2023. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 1.2% to $1.282 billion, representing 20.8% of net sales.

Looking ahead, the company remains focused on navigating choppy macroeconomic conditions and executing its strategy to provide customers with solutions that enhance productivity and profitability. Sherwin-Williams aims to prioritize investments in new stores, sales and technical personnel, innovation, digital, and other growth initiatives to achieve sustained and profitable above-market growth.

Sherwin-Williams also emphasized a disciplined capital deployment strategy, focusing on driving value for customers and returns to shareholders, pursuing business acquisitions, transactions, and investments that fit its long-term growth strategy, and returning value to shareholders through dividends and share repurchases. As of September 30, 2024, the company reported a strong liquidity position with $238.2 million in cash and $3.026 billion of unused capacity under its credit facilities, and it expects to remain in compliance with bank covenants.

The market has reacted to these announcements by moving the company's shares -5.3% to a price of $361.38. If you want to know more, read the company's complete 10-Q report here.

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