CLEVELAND, Jan. 14, 2022 /PRNewswire/ -- The
Sherwin-Williams Company (NYSE: SHW) announced preliminary
unaudited sales and earnings results for the fourth quarter and
full year ended December 31,
2021.
SUMMARY
- Fourth quarter 2021 consolidated net sales increased
approximately 6.1% compared to the prior year
- Fourth quarter 2021 diluted net income per share expected to be
approximately $1.15 per share,
including acquisition-related amortization expense of approximately
$0.20 per share
-
- Excluding acquisition-related amortization expense, adjusted
fourth quarter 2021 diluted net income per share expected to be
approximately $1.35 per share
- Full year 2021 diluted net income per share expected to be
approximately $6.96 per share
-
- Adjusted full year 2021 diluted net income per share expected
to be approximately $8.15 per share,
excluding acquisition-related amortization expense and a loss from
the Wattyl divestiture of $0.85 and
$0.34 per share, respectively
- Prior adjusted full year 2021 guidance was $8.35 to $8.55 per
share, excluding acquisition-related amortization expense and a
loss from the Wattyl divestiture of $0.85 and $0.34 per
share, respectively
- Conference call at 8:30 a.m. EST
today to discuss preliminary results
- Company to provide detailed fourth quarter and full year 2021
results, as well as 2022 outlook on January
27th as previously announced
CEO REMARKS
"While we met our consolidated fourth quarter net sales guidance
and demand remains robust, we are disappointed in our weaker than
expected earnings results in the quarter," said Chairman, President
and Chief Executive Officer, John G.
Morikis. "Our lower than expected earnings relative to
our prior guidance is related to a shortfall in The Americas Group,
where sales were below our guidance due to slower than expected
improvement in raw material availability and COVID-related labor
headwinds in December. While availability of some raw materials has
improved slightly, others including select resins and additives
specific to our professional contractor products remain in tight
supply. Logistics and transportation issues have further impacted
the supply chain. Additionally, we faced meaningful labor
challenges in The Americas Group in December related to the COVID
Omicron variant, as our workforce, including store managers, field
sales reps and drivers, experienced reduced staff availability and
store hours in some locations. Many of our suppliers and customers
have also reported labor-related impacts due to the ongoing COVID
resurgence. Sales in our Consumer Brands Group exceeded
expectations, driven primarily by non-paint products.
Performance Coatings Group's top line results also exceeded
expectations and were strong in all businesses and regions.
"As we enter 2022, demand remains strong across the majority of
our end markets, though we expect raw material availability and
COVID-related issues to persist through the first quarter. Raw
material and other costs remain elevated, and we continue to
respond with pricing actions in every Group to offset higher costs,
including a 12% price increase in The Americas Group effective
February 1st. We have
continued to invest in our business, including adding 50
million gallons of incremental architectural capacity that is now
online. Additionally, we opened 79 paint stores in the U.S. and
Canada during 2021, including 32
in the fourth quarter. We remain highly confident in our strategy,
our people, and our ability to emerge as an even stronger Company
following the current near-term disruptions."
FOURTH QUARTER PRELIMINARY CONSOLIDATED RESULTS
|
Three Months Ended
December 31,
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
Net sales
|
$
4,762.2
|
|
$
4,488.8
|
|
$
273.4
|
|
6.1
|
%
|
Net income per share
- diluted
|
$
1.15
|
|
$
1.49
|
|
$
(0.34)
|
|
(22.8)
|
%
|
Adjusted net income
per share - diluted
|
$
1.35
|
|
$
1.70
|
|
$
(0.35)
|
|
(20.6)
|
%
|
|
Twelve Months Ended
December 31,
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
Net sales
|
$
19,944.6
|
|
$
18,361.7
|
|
$
1,582.9
|
|
8.6
|
%
|
Net income per share
- diluted
|
$
6.96
|
|
$
7.36
|
|
$
(0.40)
|
|
(5.4)
|
%
|
Adjusted net income
per share - diluted
|
$
8.15
|
|
$
8.19
|
|
$
(0.04)
|
|
(0.5)
|
%
|
CONFERENCE CALL ON JANUARY 14,
2022
The Company will conduct a conference call to discuss its
preliminary unaudited fourth quarter and full year 2021 results at
8:30 a.m. EST on Friday, January 14,
2022. Participating on the call will be Chairman, President
and Chief Executive Officer, John G.
Morikis, along with other senior executives.
The conference call will be webcast simultaneously in listen
only mode by Issuer Direct. To listen to the webcast on the
Sherwin-Williams website, click on the following link,
https://investors.sherwin-williams.com/events-and-presentations/default.aspx.
An archived replay of the webcast will be available at
https://investors.sherwin-williams.com/events-and-presentations/default.aspx
beginning approximately two hours after the call ends.
CONFERENCE CALL ON JANUARY 27,
2022
As previously announced, the Company will conduct a conference
call to discuss its final financial results for the fourth quarter
and full year 2021 and its outlook for the first quarter and full
year 2022 at 11:00 a.m. EST on Thursday,
January 27, 2022.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader
in the manufacture, development, distribution, and sale of paint,
coatings and related products to professional, industrial,
commercial, and retail customers. The Company manufactures products
under well-known brands such as Sherwin-Williams®,
Valspar®, HGTV HOME® by
Sherwin-Williams, Dutch Boy®, Krylon®,
Minwax®, Thompson's® Water
Seal®, Cabot® and many more. With global
headquarters in Cleveland, Ohio,
Sherwin-Williams® branded products are sold
exclusively through a chain of more than 5,000 Company-operated
stores and facilities, while the Company's other brands are sold
through leading mass merchandisers, home centers, independent paint
dealers, hardware stores, automotive retailers, and industrial
distributors. The Sherwin-Williams Performance Coatings Group
supplies a broad range of highly-engineered solutions for the
construction, industrial, packaging and transportation markets in
more than 120 countries around the world. Sherwin-Williams shares
are traded on the New York Stock Exchange (symbol: SHW). For more
information, visit www.sherwin.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This press release contains certain "forward-looking
statements," as defined under U.S. federal securities laws, with
respect to sales, earnings and other matters. These statements can
be identified by the use of forward-looking terminology such as
"believe," "expect," "may," "will," "should," "project," "could,"
"plan," "goal," "target," "potential," "seek," "intend," "aspire,"
or "anticipate" or the negative thereof or comparable terminology.
These forward-looking statements are based upon management's
current expectations, predictions, estimates, assumptions and
beliefs concerning future events and conditions. Readers are
cautioned not to place undue reliance on any forward-looking
statements. Forward-looking statements are necessarily subject to
risks, uncertainties and other factors, many of which are outside
the control of the Company that could cause actual results to
differ materially from such statements and from the Company's
historical results, performance and experience. These risks,
uncertainties and other factors include such things as: general
business and economic conditions; the Company's ability to
successfully integrate past and future acquisitions into its
existing operations, as well as the performance of the businesses
acquired; strengths of retail and manufacturing economies and the
growth in the coatings industry; changes in the Company's
relationships with customers and suppliers; changes in raw material
availability and pricing; adverse weather conditions or impacts of
climate change, natural disasters and public health crises,
including the COVID-19 pandemic; the duration, severity and scope
of the COVID-19 pandemic and the actions implemented by
international, federal, state and local public health and
governmental authorities to contain and combat the outbreak and
spread of COVID-19, which may exacerbate one or more of the
aforementioned and/or other risks, uncertainties and factors more
fully described in the Company's reports filed with the Securities
and Exchange Commission (SEC); and other risks, uncertainties and
factors described from time to time in the Company's reports filed
with the SEC. Since it is not possible to predict or identify all
of the risks, uncertainties and other factors that may affect
future results, the above list should not be considered a complete
list. Any forward-looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
In addition, our expectations regarding fourth quarter and full
year 2021 results are based on preliminary unaudited information
about the fourth quarter and full year and are subject to revision.
Although the fourth quarter is now completed, we are still in the
process of our standard financial reporting closing procedures.
Accordingly, as we complete our normal quarter and year-end closing
and review processes, actual results could differ materially from
these preliminary results. Factors that could cause our actual
results for the fourth quarter and full year 2021 to differ
materially from our preliminary results include, but are not
limited to, inaccurate assumptions, unrecorded expenses, changes in
estimates or judgments, and facts or circumstances affecting the
application of the Company's critical accounting policies.
INVESTOR RELATIONS CONTACTS:
Jim Jaye
Senior Vice President, Investor Relations & Corporate
Communications
Direct: 216.515.8682
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
Regulation G Reconciliations
Management of the Company believes that investors' understanding
of the Company's operating performance is enhanced by the
disclosure of diluted net income per share excluding the loss on
the divestiture of Wattyl, and Valspar acquisition-related
amortization expense. This adjusted earnings per share measurement
is not in accordance with U.S. generally accepted accounting
principles (GAAP). It should not be considered a substitute for
earnings per share computed in accordance with U.S. GAAP and may
not be comparable to similarly titled measures reported by other
companies. The following tables reconcile diluted net income per
share computed in accordance with U.S. GAAP to adjusted diluted net
income per share.
|
|
Preliminary
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Preliminary
|
|
Year Ended
|
|
|
Three
Months
|
|
Unaudited
|
|
December 31,
2021
|
|
|
Ended
|
|
Year Ended
|
|
(previous
guidance)
|
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Low
|
|
High
|
Diluted net income
per share
|
|
$
1.15
|
|
$
6.96
|
|
$
7.16
|
|
$
7.36
|
|
|
|
|
|
|
|
|
|
Loss on
divestiture
|
|
—
|
|
.34
|
|
.34
|
|
.34
|
|
|
|
|
|
|
|
|
|
Acquisition-related
amortization expense (1)
|
|
.20
|
|
.85
|
|
.85
|
|
.85
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
$
1.35
|
|
$
8.15
|
|
$
8.35
|
|
$
8.55
|
|
|
Three
Months
|
|
|
|
|
Ended
|
|
Year Ended
|
|
|
December 31,
2020
|
|
December 31,
2020
|
Diluted net income
per share
|
|
$
1.49
|
|
$
7.36
|
|
|
|
|
|
Acquisition-related
amortization expense (1)
|
|
.21
|
|
.83
|
|
|
|
|
|
Adjusted diluted net
income per share
|
|
$
1.70
|
|
$
8.19
|
|
(1)
Acquisition-related amortization expense consists primarily of the
amortization of intangible assets related to the Valspar
acquisition and is included in Amortization.
|
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SOURCE The Sherwin-Williams Company