Industrial designer Sherwin-Williams' profit misses estimates on weak demand By Reuters
(Reuters) – Industrialist Sherwin-Williams (NYSE: ) missed Wall Street estimates for third-quarter profit on Tuesday, hurt by lower sales in its housing, automotive and aerospace divisions.
Shares of the company were 7.61% lower in earlier trading. The company expects fourth-quarter net sales to be in the low single-digit percentage range, against a backdrop of potential shutdowns for industrial customers during the holiday season.
WHY IT IS IMPORTANT. Automakers reported a drop in third-quarter sales due to fewer sales days and weaker consumer spending amid challenges from inflation and higher interest rates, which weighed on demand for upholstery and furniture.
Sales of new single-family homes in the US also fell in August and could recover in the coming months as lower mortgage rates and home prices boost demand.
CONTEXT The company, one of the largest lubricant manufacturers in the world, offers paints, adhesives and specialty products under the Valspar, Minwax, Purdy and many other brands. Last week, industry peer PPG Industries (NYSE: ) also reported a third-quarter profit miss due to lower sales in its industrial clothing division.
BY THE NUMBERS Ohio-based Sherwin-Williams posted adjusted earnings of $3.37 per share in the three months ended Sept. 30, compared with analysts' average estimate of $3.54 per share, according to data compiled by LSEG. The specialty chemicals maker reported net sales of $6.16 billion in the third quarter, below estimates of $6.20 billion. Net sales in the consumer products segment fell 7.5% to $791 million, hurt by a softening of the DIY market in North America, while sales in the workwear segment fell slightly to $1.72 billion.
PRINCIPAL QUOTECEO Heidi Petz pointed to the “continuation of excitement in the demand area”, and announced a 5% price increase from January 2025 in the paint shop segment.
