US Sherwin-Williams Q4 net income falls 80% on tax settlement

26 January 2012 14:58  [Source: ICIS news]

HOUSTON (ICIS)--Sherwin-Williams' 2011 fourth-quarter net income fell by 80% year on year to $14.6m (€11.1m), mainly because of a $75m tax settlement, the US-based paint firm said on Thursday.

Sherwin-Williams’ sales for the three months ending on 31 December rose by 9.2% year on year to $2.07bn, driven by higher selling prices and acquisitions, it said.

In addition, the company saw higher paint sales volumes in its global finishes and its Latin America coatings groups, it said.

Sherwin-Williams’ fourth-quarter gross profit was up by 4.8% to $886.1m. However, gross profit as a percentage of net sales was down to 42.8%, from 44.6% in the 2010 fourth quarter.

For the full 12 months of 2011, Sherwin-Williams’ sales rose by 12.7% year on year to $8.77bn. Full-year net income was down by 4.5% to $441.9m, mainly because of the tax settlement in the fourth quarter.

CEO Christopher Connor said quarterly and full-year sales rose despite soft demand and rapidly escalating raw material costs.

“Our operating segments continue to control costs and implement price increases in an effort to keep pace with rising raw material increases," said Connor.

Sherwin-Williams expects to increase 2012 first-quarter sales by 9–14%, compared with the 2011 first quarter, he added.

($1 = €0.76)

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By: Stefan Baumgarten
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