MOSCOW (MRC) -- Sherwin-Williams topped sales and profit estimates for the third quarter, notching record revenue for the period, after hiking prices for paint and other products, said the company.
The manufacturer of coatings implemented a 10% price increase across the Americas on Sept. 6 after noting higher input costs and supply chain challenges. In the July announcement, the company also said that it was raising prices in two other operating groups, although the amount wasn’t disclosed.
On Tuesday, Sherwin-Williams (ticker: SHW) said adjusted profit for the third quarter was USD2.83 a share and sales hit a record USD6.05 billion. Analysts had expected earnings of USD2.56 a share on sales of USD5.79 billion.
Same-store sales — or sales across stores in the U.S. and Canada that had been open for more than 12 months — increased 20.7% in the third quarter as “we are seeing strong realization from our September ..increase,” CEO John Morikis said. The business continued to capture demand across all professional architectural markets, he added.
The stock rose 4% to USD221.20 during morning trading on Tuesday.
The company maintained its earnings outlook for the full year at USD8.50 to USD8.80 a share. In July, it cut its forecast from a range of USD9.25 to USD9.65 due to inflation and demand pressures in Europe, China, and North America. It saw weak trends among consumers using paints for do-it-yourself projects in the second quarter, though the professional segment was strong.
We remind, Sherwin-Williams Company has announced an agreement to acquire Industria Chimica Adriatica (ICA), an Italian designer, manufacturer and distributor of industrial wood coatings used for kitchen cabinets, furniture and decor, building products, flooring and other specialty applications.