Sherwin-Williams Lowers Third Quarter 2021 Sales Guidance; Full Year 2021 Sales and Diluted Net Income Per Share Guidance is Unchanged

CLEVELAND, Sept. 8, 2021 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today lowered its net sales guidance for the third quarter 2021 while leaving its full year 2021 net sales and diluted net income per share guidance unchanged.

SUMMARY

• Lowers third quarter 2021 consolidated net sales guidance to be up or down by a low-single digit percentage over third quarter 2020
• Full year 2021 consolidated net sales guidance remains unchanged at up a high-single to low-double digit percentage over full year 2020
• Full year 2021 diluted net income per share guidance remains unchanged in the range of $8.01 to $8.31 per share, including $0.80 per share for acquisition-related amortization expense and a loss of $0.34 per share on the Wattyl divestiture

CEO REMARKS

"We continue to see strong demand across the pro architectural and industrial end markets we serve," said Chairman, President and Chief Executive Officer, John G. Morikis. "However, persistent and industry-wide raw material availability issues have not improved as anticipated, impacting our ability to fully meet the strong demand. Raw material availability negatively impacted consolidated sales by approximately 3.5% in our second quarter, and we previously communicated that we anticipated less of an impact in the third quarter. We are now expecting raw material availability, including the unfavorable impact of Hurricane Ida, to negatively impact our third quarter consolidated sales by a high-single digit percentage.

"At the same time, our total cost basket, including raw materials, transportation and labor, continues to move upward. As a result of these increasing costs and in addition to the significant pricing actions we have already taken, we have announced a 4 percent surcharge in The Americas Group effective September 20 through the end of the year. We are confident in our ability to offset inflationary pressures, and we will continue to implement additional pricing actions across our segments over the remainder of this year and into next year as necessary. Our full year sales and diluted net income per share guidance remains unchanged, with full year 2021 adjusted diluted net income per share expected to increase 13.6% at the midpoint of the range compared to the prior year. We will provide an update on our full year outlook with our third quarter results on October 26, 2021."

UPDATED THIRD QUARTER 2021 GUIDANCE

*Sales guidance is compared to third quarter 2020.

UNCHANGED FULL YEAR 2021 GUIDANCE

*Sales guidance is compared to full year 2020.

The Company is scheduled to release third quarter 2021 financial results on October 26, 2021.

ABOUT THE SHERWIN-WILLIAMS COMPANY

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 Company-operated stores and facilities, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains certain "forward-looking statements," as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "potential," "seek," "intend" or "anticipate" or the negative thereof or comparable terminology. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements and from the Company's historical results and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions; the Company's ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Company's relationships with customers and suppliers; changes in raw material availability and pricing; adverse weather conditions or impacts of climate change, natural disasters and public health crises, including the COVID-19 pandemic; the duration, severity and scope of the COVID-19 pandemic and the actions implemented by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and factors more fully described in the Company's reports filed with the Securities and Exchange Commission (SEC); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

INVESTOR RELATIONS CONTACTS:

Jim Jaye
Senior Vice President, Investor Relations & Corporate Communications
Direct: 216.515.8682 - [email protected]

Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766 - [email protected]

MEDIA CONTACT:

Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849 - [email protected]

SOURCE The Sherwin-Williams Company

Related Links

http://www.sherwin.com