Sherwin-Willams Posts Q4 and Year-End Financial Results

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sherwin-williams quarterly report

Sherwin-Willams Posts Q4 and Year-End Financial Results

Sherwin-Williams sales for Q4 2022 increased 9.8% to $5.2 million because of low double-digit pricing, flat volume and low-single-digit contributions from acquisitions partially offset by low-single-digit FX headwinds. Gross profits were up 18.8%, posted at $2.2 million in 2022 over the $1.8 million posted in 2021.

Diluted net income per share included a charge of $0.21 per share for acquisition-related amortization expense and charges totaling $0.20 per share related to restructuring actions including non-cash trademark impairments.

“Sherwin-Williams delivered strong fourth quarter results compared to the same period a year ago, including high single-digit percentage sales growth, significant year-over-year gross margin improvement, expanded adjusted operating margins in all three segments, strong double-digit adjusted diluted net income per share growth and strong EBITDA growth,” says chairman and CEO John G. Morikis. “Our strong fourth quarter performance led to record full year sales, which increased 11.1% to $22.1 billion. Full year adjusted diluted net income per share also increased to a record level. Additionally, we generated strong net operating cash in the year, which enabled us to invest $883 million in share repurchases, pay $619 million in dividends and deploy $1 billion to complete five acquisitions that will add to our solutions and capabilities.”

Sales for Sherwin-Williams for the full year were up 11.1%, from $19.9 million in 2021 to $22.1 million in 2022. Gross profit also increased 9.2%, from $8.5 million in 2021 to $9.3 million in 2022. Reported EPS for 2021 was $6.98, which jumped 10.6% to $7.72 in 2022.

“Our more than 61,000 employees delivered these results in another year of difficult operating conditions, including relentless cost inflation, less than optimal raw material availability, slowing economies, a war in Europe and COVID lockdowns in China. We refused to be deterred by these challenges and continued to do what we do best – serve our customers,” says Morikis. “Looking at our reportable segment performance in 2022, The Americas Group delivered double-digit sales growth in all customer segments, including the seventh consecutive year of double-digit growth in residential repaint. Consumer Brands Group faced extremely difficult conditions in Europe and Asia that impacted sales but continued to take actions that will drive enhanced future profitability. In Performance Coatings Group, sales increased in nearly all business units, and adjusted segment margin improved 250 basis points year-over-year.”