Paint maker Sherwin-Williams Co. (SHW: Quote) reported that its third-quarter net income increased to $262.97 million from $234.95 million in the same quarter last year.
Net income per share in the quarter increased to $2.55 per share from $2.24 per share in 2012, including a 2013 charge of $0.13 per share resulting from government tax assessments related to our Brazilian operations. Analysts polled by Thomson Reuters expected the company to report earnings of $2.64 per share for the quarter. Analysts' estimates typically exclude special items.
The increases in third quarter net income per common share were due primarily to improved operating results of the Paint Stores, Consumer and Global Finishes Groups. Currency translation rate changes increased net income per common share by $.02 per share in the quarter. Acquisitions decreased diluted net income per common share by $.02 in the quarter.
Consolidated net sales rose to $2.85 billion from last year's $2.60 billion. Fourteen analysts had consensus revenue estimate of $2.78 billion for the quarter.
For the fourth quarter, the company anticipates its core consolidated net sales will increase five to seven percent compared to last year's fourth quarter. At that anticipated sales level, it estimates core net income per common share in the fourth quarter to be in the range of $1.29 to $1.39 per share compared to $0.65 per share earned in the fourth quarter of 2012. Analysts expect the company to report earnings of $1.39 per share for the fourth-quarter.
The company anticipates its Comex acquisition will increase net sales $95 million to $105 million and negatively impact diluted net income per common share $0.20 to $0.40 per share in the fourth quarter.
For the full year 2013, the company expects consolidated net sales to increase above 2012 levels by a mid single digit percentage. The company updated its guidance for diluted net income per common share for 2013 to an expected range of $7.00 to $7.30 per share. The company said in July that it expected earnings to be in the range of $7.45 to $7.55 per share on sales growth by a mid-single digit percentage. Analysts expect the company to report earnings of $7.69 per share for fiscal 2013.
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by RTT Staff Writer
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