US Sherwin cuts outlook on costs, housing market

03 June 2008 16:48  [Source: ICIS news]

TORONTO (ICIS news)--US paint producer Sherwin-Williams on Tuesday reduced its profit outlook for the second quarter and the full year due to rapidly rising raw material costs and continued weakness in US housing.

 

Second-quarter net income per common share was expected at $1.40-1.50, compared with earlier guidance of $1.45-1.60, the company said. 

 

For the full year, Sherwin cut its outlook to $3.60-4.10, compared with its earlier expectation of $4.70-4.85 and the $4.70 it achieved in 2007.

 

“The significantly lower expectation of diluted net income per common share for the full year 2008 relates primarily to the expected continuation of the unprecedented downturn in the US housing market and rapidly rising raw material cost increases,” it said.

 

Sherwin’s share price was down 4.33%, to $53.28, in Tuesday morning trading in New York.

 

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By: Stefan Baumgarten
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