Sherwin-Williams Posts Higher Profit In Q2 - Update

(RTTNews) - Paint maker Sherwin-Williams Co. (SHW) Thursday reported a higher second-quarter profit, as sales increased about 12 percent, benefited by acquisitions and rise in paint sales volume in its Paint Stores Group.

For the second quarter, the company's net income increased to $291.45 million or $2.94 per share from $257.29 million or $2.46 per share in the prior year.

The company said its recent-quarter result included $0.06 per share loss from Comex. Currency translation rate changes decreased earnings per share by $0.02. The prior-year quarter included charges of $0.08 per share related to Brazil tax assessments.

On average, analysts polled by Thomson Reuters expected the company to earn $2.93 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 12.1 percent to $3.04 billion from $2.71 billion a year ago. Analysts estimated revenues of $3.01 billion for the quarter.

Acquisitions increased net sales by 4.6 percent, while unfavorable currency translation rate changes decreased sales by 0.9 percent.

According to the firm, the Comex acquisition is performing better than expected in the year.

Net sales from stores open more than twelve calendar months increased 9.8 percent in the quarter.

Net sales from Paint Stores Group increased 17.2 percent to $1.88 billion. Consumer Group sales were $433.4 million, up 10.1 percent from a year earlier.

Looking ahead to the third quarter, the firm expects earnings per share to be in the range of $3.15 to $3.25. Sales are anticipated to increase by 9% to 14% compared to last year's third quarter.

During the quarter, Sherwin-Williams expects Comex sales impact of $120 million to $130 million and loss of about $0.05 per share. Street analysts expect earnings of $3.06 per share, on revenues of $3.13 billion for the quarter.

For full-year 2014, the firm expects earnings per share to be in the range of $8.50 to $8.70, including a Comex loss of $0.35 per share. Consolidated net sales for the year are expected to increase by 8% to 13% from 2013.

Analysts are looking for earnings of $8.49 per share, on revenues of $11.13 billion for the year.

SHW is currently trading at $208.26, up 3.24 percent.