Cleveland, OH, Feb. 6--Sherwin-Williams’ fourth quarter profits rose 25.7%, boosted by sales of paint to do-it-yourselfers and by cost cuts. The company posted quarterly profit of $57.1 million, or $0.38 a share, compared with $45.4 million, or $0.30 a share, a year ago.
Analysts forecast profit of $0.37 to $0.41, with an average of $0.39, according to market research firm Thomson First Call.
Sales rose 2% to $1.16 billion.
Net sales in the company’s paint stores segment increased 3.4% in the fourth quarter to $756.2 million and 3.7% for the year to $3.3 billion. The increases were due primarily to strong domestic architectural paint sales to contractors and DIY customers that more than offset weak sales in the industrial maintenance and product finishes categories.
Comparable-store sales, for stores opened twelve months or more, increased 1.8% in the fourth quarter and 1.9% for the year.
The company expects 2003 will be a "low growth, challenging year" due to uncertain worldwide economic conditions, the threat of war with Iraq and the slow, long term recovery expected in the domestic economy. It forecast sales growth of 3% to 5% for the year, with earnings of $2.17 to $2.19 per share in 2003. Analysts on average forecast profit of $2.24 for the year.
