26 January 2012 22:31 [Source: ICIS news]
HOUSTON (ICIS)--The US housing market should rebound in 2012, increasing demand and boosting sales for paints and coatings, the chief executive of paints producer Sherwin-Williams said on Thursday.
“There appears to be a growing sentiment in the market predicting better times ahead,” CEO Chris Connor said during an earnings conference call with investors.
“Many see early signs that the housing recession is finally nearing an end, while others forecast moderating rates of raw-material inflation.”
Connor said demand for paints and coatings has slowly started to improve in the residential housing markets.
“Time will tell whether this momentum is durable and whether it will ultimately lead the US housing market back to more sustainable levels in the coming years,” he said.
“On the raw-material front however, we still expect significant cost headwinds in 2012, primarily from titanium dioxide [TiO2].”
Connor said they expect raw material cost increases for 2012 to be in the single- to low double-digit percent range.
He predicted consolidated net sales for the first quarter of 2012 to increase 9-14% year on year, while full-year sales are expected to increase in the “high single digits to low teens percentage versus 2012”.
Earlier on Thursday, the company reported that 2011 fourth-quarter net income fell by 80% year on year to $14.6m (€11.1m), mainly because of a $75m tax settlement.
Sherwin-Williams stock ended the day up nearly 2.1% at 98.03.
For more on Sherwin-Williams and other producers visit ICIS company intelligence
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