Sales and profits grew across all operating segments in 2010 for The Sherwin-Williams Company, which today announced its financial results for the fourth quarter and year ended December 31, 2010.
Compared to the same periods in 2009, consolidated net sales increased $296.8 million, or 18.6 percent, to $1.90 billion in the quarter and $682.2 million, or 9.6 percent, to $7.78 billion in the year due primarily to higher paint sales volume, acquisitions, and selling price increases.
The Cleveland, Ohio-based coatings manufacturer said that acquisitions increased consolidated net sales by 8.7 percent in the quarter and 3.4 percent in the year.
Diluted net income per common share in the quarter increased to $.67 per share from $.58 per share in the fourth quarter 2009 and increased 11.4% to $4.21 per share in the year from $3.78 per share in 2009.
Net sales in the Paint Stores Group increased 8.6 percent to $999.3 million in the quarter and increased 4.1 percent to $4.38 billion in the year due primarily to selling price increases and improving domestic architectural paint sales to residential repaint contractors and DIY customers.
Paint Stores Group segment profit increased to $134.8 million in the quarter from $119.9 million last year and increased to $619.6 million in the year from $600.2 million last year.
Net sales of the Consumer Group increased 6.2 percent to $255.0 million in the quarter and 5.9 percent to $1.30 billion in the year, due primarily to improving demand at some of the segment's retail, industrial and institutional customers. Segment profit increased to $26.1 million in the quarter from $4.6 million last year and increased to $204.0 million in the year from $157.4 million last year.
The Global Finishes Group's net sales increased 46.4 percent to $640.1 million in the quarter due primarily to acquisitions, higher paint sales volume, and selling price increases. In the year as a whole, net sales increased 26.5 percent to $2.09 billion. Segment profit in the quarter increased to $28.8 million from a loss of $1.1 million last year.
Commenting on the financial results, Christopher M. Connor, chairman and chief executive officer, said, "We are pleased that all of our operating segments achieved sales and operating profit growth on a year over year basis in this continuing uncertain environment. Our operating segments continue to control costs and have implemented price increases to offset the current raw material increases."
"Over the past year, our Paint Stores Group continued to focus on gaining business in all markets and product lines while maintaining customer service in a difficult raw material environment. Consumer Group improved their operating results through increased sales, realizing the benefits from prior year site rationalizations, and maintaining good cost control. In the Global Finishes Group, we continue to be pleased with the growth in architectural, OEM and automotive finishes sales volume.”
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers.
Sherwin-Williams branded products are sold exclusively through a chain of more than 3,500 company-operated stores and facilities, while the company's other brands are sold through mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Global Finishes Group distributes a wide range of products in more than 70 countries around the world.
