Sherwin-Williams Q1 earnings fall 1.6%

19 April 2007 21:17  [Source: ICIS news]

HOUSTON (ICIS news)--US paintings and coatings maker Sherwin-Williams said on Thursday its first-quarter net income fell 1.6% to $111m (€82.14) from the same period last year on softer demand.

The company said that demand from do-it-yourself painters and housing contractors was softer than expected. In addition, the paint maker eliminated a portion of its paint programme with a large retail customer.

Net sales were $1.76bn for the quarter, down 0.7% from the same time last year, the company said.

However, net income per share was 83 cents during the quarter, up 1 cent from the same time last year, the company said. The increase was due, in part, to the company buying back shares of its common stock.

There were 135m shares available, down from 138m available last year.

First-quarter net sales in the company's consumer group were $301.2m, down 8.7% from the same time last year, the company said.

Net sales in the company's paint-store group dropped 0.5% from the same time last year, Sherwin-Williams said. The company attributed the drop to a weak house market in the US.

Net sales for the company's global group reached $402.2m in the first quarter, up 5.7% in US dollars. The company attributed the increase to introducing a new product line in the UK, rising prices and volumes in South America and improved sales in automotive and product finishes.

For the second quarter, the company said it expects net income to be $1.37-1.45/share, compared with $1.33/share reported last year.

For the year, the company said it expects net income to be $4.55-4.65/share, compared with $4.19/share last year.

($1 = €0.74)

By: Al Greenwood
+1 713 525 2653

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