Sherwin-Williams' Q3 net profits fall 11.5%

16 October 2008 15:15  [Source: ICIS news]

TORONTO (ICIS news)--US paint firm Sherwin-Williams said on Thursday its third-quarter net income was down 11.5% to $177m year on year amid the tough economic situation both at home and globally.

 

Net sales for the three months ended 30 September rose 3.3% to a record $2.3bn but gross profits were down 2.8% to $960.5m year on year, the company said.

 

As a percentage of sales, third-quarter gross profits dropped to 42.3%, from 45.0% in the 2007 third quarter.

 

“We are experiencing an unprecedented downturn in the US housing market that has severely depressed paint demand in the domestic new residential, residential repaint, DIY [do it yourself] and commercial markets,” said CEO Christopher Connor.

 

“During the third quarter, the strong paint demand we had enjoyed in many foreign markets began to subside and we anticipate increasing softness in the months ahead,” he said.

 

As the credit crisis continued, Sherwin would prudently manage its use of cash to help maintain its financial stability through the end of the turmoil, he added.

 

($1 = €0.74)

 

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By: Stefan Baumgarten
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