21 July 2011 13:59 [Source: ICIS news]
HOUSTON (ICIS)--Sherwin-Williams’s second-quarter net income fell 1.4% year on year to $179.1m (€125.4m), partly due to high raw material costs, the US-based paint and coatings firm said on Thursday.
Sherwin-Williams' sales for the three months ended 30 June were $2.36bn, up 9.9% year on year.
Gross profit was $1.02bn, up 5.2% from the 2010 second quarter. However, the gross profit/sales ratio fell to 43.4%, from 45.4% in the 2010 second quarter.
Selling, general and administrative expenses rose rose 9.3% year on year to $756m.
"Earnings in the quarter were at the low end of our guidance range due to high raw material costs versus the timing of our price increases,” said CEO Christopher Connor.
“Although domestic demand remains soft, we continue to invest in selling, general and administrative expenses to maintain customer service and are encouraged by the improvement in domestic DIY [do-it-yourself] and protective and marine sales in [Sherwin-Williams’] paint stores group,” Connor added.
For the third quarter, Sherwin-Williams expects consolidated sales to increase by 10 to 15% compared with the same period in 2010, he added.
In related news on Thursday, AkzoNobel, the Dutch chemicals, paint and coatings firm, also reported a slight year-on-year decline in second-quarter net income because of higher raw material costs.
($1 = €0.70)
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