|Sherwin-Williams 1Q net income rises 16 pct.||| Print ||
|Written by Associated Press|
|Thursday, 18 April 2013 13:34|
CLEVELAND (AP) — The Sherwin-Williams Co. said Thursday its first-quarter net income rose 16 percent, helped by better results at its paint stores and global finishes businesses.
The Cleveland-based paint company earned $116.2 million, or $1.11 per share, up from $100.2 million, or 95 cents per share, in the same quarter last year.
Revenue rose just over 1 percent to $2.17 billion from $2.14 billion, helped by contributions from a recent acquisition and higher sales volumes at the paint store business.
The profit beat Wall Street predictions, while the revenue fell slightly short. Analysts, on average, expected a profit of $1.09 per share on $2.22 billion in revenue, according to FactSet.
Paint store sales rose 4 percent to $1.17 billion on higher demand for architectural paint, while sales at the company's consumer business fell 4 percent to $308.6 million. Global finishes sales increased 1 percent to $486.8 million, but profit at the business increased 19 percent on higher selling prices and better efficiency.
Sherwin-Williams projected a second-quarter profit of $2.50 to $2.60 per share on sales growth of 5 percent to 9 percent. Based on the company's year-ago results, the guidance implies revenue of $2.7 billion to $2.8 billion.
Analysts expect a second-quarter profit of $2.58 per share on $2.93 billion in revenue.
Sherwin-Williams also backed its previous full-year profit guidance of $7.45 to $7.55 per share. The company also said it expects 2013 sales to rise above 2012 levels by a "mid-single-digit percentage." The company reported $9.53 billion revenue for 2012.
Wall Street was projecting earnings of $8.02 per share for the year, with estimates ranging from $7.50 to $9.50. Analysts expect revenue of $10.68 billion.
Sherwin-Williams shares rose $3.95, or 2.3 percent, to $174.84 in afternoon trading. Earlier in the session, the stock hit a new all-time high of $177.01, surpassing the record trade it hit earlier in the week of $175.46.
Copyright 2013 The Associated Press.