Sherwin-Williams

Source: Manufacturing Digital

Date :2/18/2008 4:54:06 AM

In its end of year 2007 reports the Sherwin-Williams company reported a 2.5 percent consolidated net sales increase, reaching a record-breaking $8.01 billion. Exec reports

Written by Ian Armitage and produced by Kristin Hurley

Founded by Henry Sherwin and Edward Williams in 1866, a year after the end of the American civil war, the Sherwin-Williams company is an American general building materials giant. The company primarily engages in the manufacture, distribution and sale of coatings and related products to professional, industrial, commercial and retail customers around the globe and has been made famous by its Sherwin-Williams Paints line.

Since its formation, the company has not only grown to become the largest producer of paints and coatings in the US, but it is among the largest producers in the world. For more than 140 years, it has been determined to lead its industry, manufacturing and marketing innovative products of superior quality, while operating safely, cleanly and responsibly. Its corporate website boasts: “The pursuit of excellence is a commitment, not an achievement. This commitment is a vital part of the Sherwin-Williams culture. It is a pledge that joins every Sherwin-Williams employee together in service to our customers and shareholders.” The Center of Excellence which opened in Spring 2004 works around the clock to support this goal, providing inspiration for the future.

Named by Fortune as one of the best 100 companies to work for in 2008, it operates through the following segments: paint stores, product finishes, consumer, automotive coatings, aerospace finishes, industrial and marine coating systems and international coatings.

Year-end financial success

In its end of year 2007 reports published on January 29 2008, the Sherwin-Williams company reported a 2.5 percent consolidated net sales increase, reaching a record-breaking $8.01 billion. Diluted net income per common share also increased 12.2 percent in the year to an astonishing $4.70 per share.

Why was this? Well there have been extremely strong sales within the global group and several acquisitions have boosted the group’s portfolio. There were seven acquisitions completed during 2007, which increased consolidated net sales 1.4 percent in the year.

Favorable currency translation rate changes, spending control and improved manufacturing direct conversion costs also played a significant role in boosting results for the year, helping Sherwin-Williams achieve record breaking sales.

Acquisitions added 172 stores and approximately 1.9 percent to the group’s net sales. Although sales in all segments have grown over 2007, they tailed off slightly towards the end of the year due to a declining US economy. Perhaps this is a sign of the future? The Do-It-Yourself market certainly remains sluggish and shows no sign of picking up anytime soon.

Positive results

Because of selling price increases, volume gains, currency impact and the acquisitions already mentioned, net sales of the global group increased 8.7 percent in the year when stated in U.S. dollars. Favorable currency translation rate changes increased net sales by 3.4 percent and acquisitions increased by a further 1.3 percent. The global group’s segment profit also improved 23.2 percent in the year. Stated in U.S. dollars, segment profit increased by one percent to 9.3 percent.

Painting made easy

In September 2007, to give you an idea of the constant stream of innovation which is a common theme at Sherwin-Williams, the company’s Industrial and Marine Coatings division introduced the FluoroKem Fluoropolymer Urethane finish - a product that requires fewer recoats, less maintenance and results in lower life cycle costs.

This revolutionary product is the newest addition to Industrial and Marine Coatings’ product line and is a premium, ultra-durable urethane coating, which performs under the most extreme exterior exposures offering superior, long lasting color and gloss retention. It is ideal for use in high profile areas such as convention centers, water tanks, casinos and other highly visible areas and its performance characteristics outlast those of most other coatings, providing a fast-drying, ambient-cured finish. It is also graffiti, chemical and abrasion-resistant, and meets AWWA performance standards.

FluoroKem can be applied by brush, roll or spray, and is versatile enough to be applied to any primed steel, galvanized steel, or aluminum. This new coating is also ideal for applications requiring low VOC coatings.

Green initiatives

Green initiatives are becoming second nature for governments, corporations and property owners these days. All coatings now need to meet environmental requirements. However, it is equally important that performance, aesthetics and productivity are not compromised. Sherwin-William’s high quality paints means fewer coats are required and the need for frequent repaint is eliminated, significantly reducing waste and harmful emissions. You might say green is one of its specialties.

Indeed, the company has pioneered the use of environmentally-preferable solutions in its business practices.

It is developing coatings that use sustainable raw materials, initiated new techniques in its manufacturing process that produce less waste and has streamlined national distribution processes that conserve natural resources and use fuel, energy and raw materials as efficiently as possible. It is also promoting awareness of proper surface preparation and application processes to help lengthen the lifespan of coatings, thereby reducing the frequency of repaint-related emissions and waste.

Acting as a responsible manufacturer, Sherwin-Williams is helping customers select the right products for their unique projects, and its twist-and-pour recyclable containers allow consumers to store more unused paint.

Strong focus

The Sherwin-Williams Company, founded in 1866, is one of the world’s leading companies engaged in the development, manufacture, distribution and sale of coatings and related products to professional, industrial, commercial and retail customers. This is demonstrated by the constant stream of innovation, which saw the development of FluoroKem for instance, running throughout the whole organization.

For over a century, it has satisfied the coating and color needs of builders, designers, specifiers, property managers and contractors. Sherwin-Williams provides fast, flexible, responsive local service and personalized, expert advice. More than 3,325 stores and 1,800 sales representatives make Sherwin-Williams North America’s largest single-source supplier of high-quality paints, stains, masonry coatings and brand-name wall and floor coverings.

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