Sherwin-Williams Reaffirms First Quarter Financial Guidance
CLEVELAND, March 19, 2020 – The Sherwin-Williams Company (NYSE: SHW) today reaffirmed its financial guidance for the first quarter of 2020. For the first quarter of 2020, the Company continues to project net sales growth of 2% to 5% compared to the first quarter of 2019, with The Americas Group expected to be above the high end of this range.
Although the Company has experienced headwinds related to the coronavirus pandemic (COVID-19), primarily outside the U.S., we are reaffirming our first quarter guidance amidst this continuously evolving situation. The Company is working diligently and proactively across all its businesses to ensure it is taking every reasonable preventative measure to protect its employees and customers, and to maintain business continuity. We are evaluating developments daily and operating in accordance with the most recent information provided by the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO), local health officials, and other government entities, including various government directives pertaining to business operations.
“As we continue to prioritize the health and well-being of our employees and their families, I want to thank our entire team for their dedication and commitment in continuing to serve our customers,” said Chairman and Chief Executive Officer, John G. Morikis. “At the current time, our production operations in Asia are returning to pre-crisis levels with sites operating under the guidance of local and state governments. While there has been a dramatic surge in cases across Europe and an increase in cases in North America, the Company has experienced minimal disruption to its supply chain and facility operations to date. At this time, the vast majority of the Company’s North American paint stores continue to operate and provide customers with multiple options for ordering and receiving product, including through our existing and extensive delivery system and store pick-up. We will continue to respond to the many small business owners and independent painting contractors that are relying on us for products and service during this critical time to support their families along with larger customers involved in mission critical applications such as food and beverage packaging, health care equipment and facilities, military equipment and energy infrastructure. Although near-term market conditions are likely to remain unpredictable, we believe our underlying long-term demand fundamentals remain intact, and we remain focused on delivering value added solutions to ensure our customers’ continued success.”
We will continue to monitor this situation on a global basis. The Company is scheduled to release first quarter 2020 results on April 29, 2020, at which time it will provide further updates.
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams 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 4,900 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.
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: finalization of our financial statements for the quarter ended March 31, 2020; general business 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 current coronavirus pandemic (COVID-19); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the Securities and Exchange Commission. 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.