Cleveland, OH, July 20, 2006--Paint maker, retailer Sherwin-Williams in the second quarter reported earnings that were up 20.5%, to $184.6 million.
Earnings for the first six months of the year increased 26.1%, to $298.3 million. Earnings per share in the quarter increased 23.1% to $1.33. Earnings per share for the first half of 2006 were up 30.1% to $2.16 per.
Analysts were looking for earnings of $1.25 a share in the first quarter.
The company reported sales that increased 8.4%, to $2.13 billion in the quarter and 11.3%, to $3.90 billion in the first six months due primarily to continuing strong domestic and international paint sales.
Sales in the company’s Paint Stores Group increased $140.5 million, or 11.8%, to $1.33 billion in the quarter and $320.2 million, or 15.5%, to $2.38 billion for the first six months due primarily to continuing strong domestic architectural paint sales to contractor and do-it-yourself (DIY) customers and improved industrial maintenance product sales.
Same-store sales were up 9.6% in the quarter and 13.4% in the first six months.
Christopher M. Connor, chairman, president and CEO, said during the third quarter of 2006, he anticipates achieving an increase in consolidated net sales between 6% and 9% over last year's third quarter. With sales at that level, we expect diluted net income per common share for the third quarter to be in the range of $1.23 to $1.28 per share compared to $1.07 per share last year. For the full year 2006, we anticipate that the percentage increase in our consolidated net sales will be in the high-single to low-double digits over 2005. With annual sales at that level, we estimate diluted net income per common share for 2006 will be in the range of $4.00 to $4.10 per share, including an estimated $.08 per share charge for the additional expense relating to stock options, compared to $3.28 per share earned in 2005."
