THE SHERWIN-WILLIAMS COMPANY REPORTS 2018 SECOND QUARTER FINANCIAL RESULTS

The Sherwin-Williams Company announced 2018 Second Quarter Financial Results ended June 30, 2018. Compared to the same period in 2017, consolidated net sales increased $1.04 billion, or 27.8%, to $4.77 billion in the quarter and increased $2.24 billion, or 34.5%, to $8.74 billion in six months due primarily to the addition of Valspar sales, higher paint sales volume in The Americas Group and selling price increases. Diluted net income per share in the quarter increased to $4.25 per share from $3.36 per share in 2017. The Performance Coatings Group’s net sales stated in U.S. dollars increased 79.9% to $1.37 billion in the quarter and increased 108.5% to $2.60 billion in six months due primarily to the inclusion of Valspar sales and selling price increases. Commenting on the second quarter, John G. Morikis, Chairman, President and Chief Executive Officer, said, “The Company posted record results in net sales, gross profit, and profit before taxes in the second quarter, aided by the Valspar acquisition which continues to build momentum. Consolidated earnings per share expanded by 26.8% percent in the quarter, excluding acquisition-related costs and environmental expense provisions impacts in both years. Underlying demand remained solid across most of our end market segments during the quarter. At the same time, raw material costs continued to inflate during the quarter at a rate slightly higher than anticipated. “All three operating segments delivered year-over-year improvement in net sales and profit. The Performance Coatings Group had sales and volume growth across most of its businesses and improved their operating margin on good cost control and effective pricing actions. “For the third quarter, we anticipate our consolidated net sales will increase a mid-to-high single digit percentage compared to last year’s third quarter. For the full year 2018, we expect our consolidated net sales will increase by a high teens to low twenty percentage.