Cleveland, OH, Oct. 28--Sherwin-Williams Co. saw an 8.1% increase in net income in the latest third quarter, on a 5.4% rise in consolidated net sales.
In a news release, the coatings company's chairman and chief executive, Christopher M. Connor, said: "We continue to be encouraged by the strength of the Paint Stores Segment's architectural paint sales to both wholesale and retail customers. We are also encouraged by the improved signs of recovery in the industrial maintenance market during the third quarter."
The company said net income was $120.3 million or 82 cents a share in the quarter, up from $111.3 million or 73 cents a year earlier.
The Thomson First Call mean earnings estimate for the latest quarter was 78 cents a share.
Consolidated net sales rose to $1.50 billion from $1.43 billion, with net sales in the Paint Stores Segment rising 5.4% in the quarter and net sales in the Consumer Segment rising 4.7%.
Net sales in the International Coatings Segment rose 17.1% in the quarter, the company noted, while Automotive Finishes Segment net sales inched up 1.2%.
Sherwin-Williams Co. said it's pleased with the sales volume increase and improved profitability of its Consumer Segment in the latest quarter. It noted that its cost-cutting efforts in that segment helped boost operating profit in spite of a reduction in net pension credit.
It said it acquired 1.5 million of its common shares in the latest quarter, bringing the total repurchased to five million for the nine months.
It said its Automotive Finishes Segment is starting to see signs of strengthening in its international markets, but domestic sales continue to be hampered by soft automotive after-market conditions.
Sherwin-Williams Co. said: "We anticipate that the fourth-quarter consolidated sales increase will be in the mid single-digits versus last year's fourth quarter."
The company also sees fourth-quarter net of 39-47 cents a share, compared with the 38 cents reported a year earlier.
The company said in July that it expected its annual sales would increase 1.5% to 3.0% over 2002. "With relatively strong third quarter sales, we now expect our annual sales will finish in the upper part of that range or between 2.5% and 3.5% over 2002. Similarly, we are narrowing our expectations established on July 22, 2003 for diluted net income per common share for the year to be within the top part of the range provided at that time. We expect diluted net income per common share for the year will be in the range of $2.16 to $2.24 per share compared to $2.04 per share earned last year before cumulative effect of change in accounting principle."
