Paint maker Sherwin-Williams Co. (SHW), Thursday reported an increase in first-quarter profit, driven mainly by continued strong performance at its paint stores segment and improved gross margin. Earnings for the period came in ahead of Street expectations, but revenues were short of estimates. Looking ahead, the company maintained its outlook for the fiscal year 2013.
Commenting on the first quarter results, Chief Executive Christopher Connor said, "We are pleased to report record sales and earnings per share on the continued positive sales volume and strong operating results of our Paint Stores Group."
Paint stores sales, the major contributor to total revenues, rose 4 percent to $1.17 billion, due mainly to higher architectural paint sales volume across all end market segments. Sales from stores open for more than a year increased 3.2 percent in the quarter.
Meanwhile, consumer group division sales dropped 3.7 percent to $308.6 million and Latin America coatings group's decreased 2.9 percent to $202.6 million. Sales of global finishes group's advanced 8 percent to $486.8 million.
Sherwin-Williams' net sales for the first quarter grew 1.4 percent to $2.17 billion from $2.14 billion last year. Eight analysts polled by Thomson Reuters had consensus revenue estimate of $2.23 billion for the quarter.
Cleveland, Ohio-based Sherwin-Williams' first-quarter profit rose to $116.2 million or $1.11 per share from $100.2 million or $0.95 per share last year. Analysts expected earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.
Gross margin, or gross profit as a percent of sales, improved to 44.4 percent from 42.6 percent.
Looking forward to the second quarter, the company anticipate earnings of $2.50 to $2.60 per share with sales increase of five to nine percent. Analysts currently expect earnings of $2.56 per share on revenues of $2.84 billion for the quarter.
For the full year 2013, Sherwin-Williams continues to expect earnings of $7.45 to $7.55 per share on sales growth in a mid-single digit percentage. Analysts currently sees earnings of $7.82 per share on revenues of $10.49 billion for 2013.
SHW is currently trading at $174.22, up $3.33 or 1.95%, on a volume of about 1 million shares on the NYSE.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.