Sherwin-Williams Q2 net income up 13% on volumes, acquisitions

LONDON (ICIS)–Sherwin-Williams’ net income for the second quarter of the year rose 13% year on year to $291.4m on the back of higher paint sales volumes and acquisitions, the US-based paints and coatings producer said on Thursday.

Net sales for the quarter rose 12% year on year to $3.04bn, and gross profit grew by 14% over the same period to $1.41bn. Acquisitions increased consolidated net sales for the quarter by 4.6%, Sherwin-Williams added.

“The Paint Stores Group architectural volume growth was strong across all end market segments,” said CEO Christopher Connor.

“Our Consumer Group improved its operating  results through higher volume sales and operating efficiencies. Our Global Finishes Group continues to improve its operating  margins through improved operating efficiencies,” he added.

Net income was also up for the first half of the year compared to the same period in 2013, increasing 9% to $406.9m, while net sales increased 11% year on year to $5.41bn, the company added.

Sherwin-Williams predicted in April that its 2014 sales would show strong growth compared to 2013, despite a harsh North American winter that saw its net income for the first quarter of the year fall year on year. The company predicted 8-14% year-on-year sales growth in 2014, a forecast Connor continues to back, although the top range of sales growth was trimmed by one percentage point to 13%.

“For the third quarter, we anticipate our consolidated net sales will increase nine to 14% compared to last year’s third quarter. At that anticipated sales level, we estimate diluted net income per common share in the third quarter of 2014 to be in the range of $3.15 to $3.25 per share compared to $2.55 per share earned in the third quarter of 2013.

“For the full year 2014, we expect consolidated net sales to increase eight to 13% compared to full year 2013,” he added.