20 October 2009 14:15 [Source: ICIS news]
LONDON (ICIS news)--Sherwin-Williams' third-quarter net income was down 1.1% year on year to $175.2m (€117.4m) due to poor sales volumes and damaging currency translation rate changes, the ?xml:namespace>
In a press statement, the company said net income was down 13.2% year on year to $370.5m for the nine months ended on 30 September.
Consolidated net sales for the three months ended 30 September fell 12.0% year on year to $1.9bn, and decreased 12.5% to $5.5bn in the nine-month period, primarily due to weak paint sales volume, the company said.
As a percentage of sales, third-quarter gross profits rose to 46.5%, up from 42.3% in the 2008 third quarter, it said.
Sherwin-Williams added that unfavourable currency translation rate changes decreased consolidated net sales 1.6% in the third quarter.
Christopher Connor, Sherwin-Williams chairman and CEO, said: “While we remain disappointed about out 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.”
Connor added that Sherwin-Williams had seen limited improvements in the do-it-yourself (DIY) and other end-user areas of the business, but not to an extent that would indicate any significant recovery or sustainable growth from the depressed markets of the past year.
“We continue to focus on growing volume and opportunities to leverage our controlled distribution network and strong brands to drive sales,” he added.
Looking ahead toward the fourth quarter, Connor said the company anticipates consolidated net sales to be 8-12% below last year’s fourth quarter results, while full-year consolidated net sales are expected to be 11.5-12.5% lower than in 2008.
($1 = €0.67)
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