25 October 2013 12:43 [Source: ICIS news]
LONDON (ICIS)--Sherwin-Williams reported a year-on-year increase in third-quarter net income of 12%, to $263m (€189m), following a rise in sales due primarily to higher paint sales volumes, the US-based coatings and paint major said on Friday.
Compared to the third quarter in 2012, consolidated net sales increased $244m, or 9.4%, to $2.85bn in the quarter, the company added.
Acquisitions raised consolidated net sales 1.1% in the quarter, although an unfavourable currency translation rate changes decreased consolidated net sales 0.8%.
Diluted net income per common share in the quarter increased to $2.55 per share from $2.24 per share in 2012, including a 2013 charge of 13 cents per share resulting from government tax assessments related to our Brazilian operations, the company added.
Sherwin-Williams’ third-quarter gross profit was $1.30bn, with gross profit as a percentage of sales rising to 45.5%, from $1.15bn and 44.2% in the same period a year ago.
CEO Christopher Connor said: “The Paint Stores Group architectural volume growth was strong across all end market segments. Our Consumer Group improved their operating margins through better than expected sales and improved operating efficiencies. Our Global Finishes Group continues to improve its operating margins through improved operating efficiencies and good cost control.”
“For the fourth quarter, we anticipate our core consolidated net sales will increase five to seven percent compared to last year's fourth quarter.
“At that anticipated sales level, we estimate core diluted net income per common share in the fourth quarter to be in the range of $1.29 to $1.39 per share compared to $.65 per share earned in the fourth quarter of 2012," he added.
“For the full year 2013, we expect consolidated net sales to increase above 2012 levels by a mid-single digit percentage. With annual sales at that level, we are updating our guidance for diluted net income per common share for 2013 to an expected range of $7.00 to $7.30 per share compared to $6.02 per share ead in 2012.”
($1 = €0.72)
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