26 October 2010 14:09 [Source: ICIS news]
LONDON (ICIS)--Sherwin-Williams recorded a third-quarter net profit of $175.3m (€126.2m), almost unchanged from $175.2m during the same period of last year, as earnings were affected by high raw material costs, the US-based paints and coatings manufacturer said on Tuesday.
Compared with the same three months in 2009, consolidated net sales increased by 8.8% to $2.17bn.
“Earnings leverage fell short of what we would normally expect to generate on a sales increase of this magnitude due to persistently high raw material costs, the timing of our price increases and higher SG&A [selling, general, and administrative] expenses required to ensure product availability and good customer service," said Christopher Connor, chairman and CEO.
Connor said the company was cautiously optimistic about the stability of end-market demand and was working hard to mitigate the effect of rising raw material costs.
"During the fourth quarter of 2010, we anticipate consolidated net sales will increase in the mid-teens compared to last year's fourth quarter primarily due to acquisitions,” he said.
Consolidated net sales for the full year were expected to increase above 2009 levels by a high-single-digit percentage.
($1 = €0.72)
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