The Sherwin-Williams Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of December 31, 2016; Provides Earnings Guidance for the First Quarter and Full Year of 2017; Reports Impairment of Goodwill and Trademarks for the Fourth Quarter of 2016
January 26, 2017 at 07:00 am
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The Sherwin-Williams Company reported unaudited consolidated earnings results for the fourth quarter and full year ended of December 31, 2016. For the quarter, the company reported net sales of $2,782,591,000 compared to $2,604,596,000 a year ago. Income before income taxes was $304,034,000 compared to $297,221,000 a year ago. Net income was $203,030,000 compared to $198,017,000 a year ago. Diluted earnings per share were $2.15 compared to $2.11 a year ago.
For the full year, the company reported net sales of $11,855,602,000 compared to $11,339,304,000 a year ago. Income before income taxes was $1,595,233,000 compared to $1,548,966,000 a year ago. Net income was $1,132,703,000 compared to $1,053,849,000 a year ago. Diluted earnings per share were $11.99 compared to $11.15 a year ago.
For the first quarter of 2017, the company anticipates the consolidated net sales will increase a mid to high single digit percentage compared to the first quarter of 2016. At that anticipated sales level, the company estimate diluted net income per common share in the first quarter of 2017 will be in the range of $1.45 to $1.55 per share compared to $1.75 per share earned in the first quarter of 2016, restated for the early adoption of a new accounting standard (ASU 2016-09).
For the full year 2017, the company expects consolidated net sales to increase a mid single digit percentage compared to full year 2016. With annual sales at that level, the company anticipates diluted net income per common share for 2017 will be in the range of $13.00 to $13.20 per share compared to $11.99 per share earned in 2016. In 2017, The company anticipates capital expenditures of approximately $231 million, depreciation of $175 million to $185 million and amortization of about $30 million.
For the quarter, the company reported impairment of goodwill and trademarks of $10,688,000.
The Sherwin-Williams Company specializes in developing, manufacturing and marketing paints, coating and related products. Net sales break down by activity as follows:
- retail sale of paints and industrial and architectural coating (56.5%): owned, at the end of 2020, 4,774 specialized stores worldwide;
- professional sale of paints and industrial and architectural coating (16.6%): activity ensured through a network of 282 branches worldwide (of which 221 in the United States);
- sale of industrial coatings for wood finishing and industrial applications (26.8%)
- other (0.1%).
At the end of 2020, the group had 100 principal production sites worldwide.
The Sherwin-Williams Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of December 31, 2016; Provides Earnings Guidance for the First Quarter and Full Year of 2017; Reports Impairment of Goodwill and Trademarks for the Fourth Quarter of 2016