Sherwin-Williams Shares Fall 11% Premarket After Warning of Waning Demand

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By Will Feuer

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Shares of Sherwin-Williams Co. fell 11% in premarket trading Wednesday after the paint and coating maker warned of deteriorating demand in international markets as well as the North American do-it-yourself market.

The company said demand remained strong in its Americas business and in its performance coatings business in North America, but warned of slowing trends in other areas.

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The stock traded at $226 ahead of the market open. The shares are down nearly 28% so far this year.

The company posted lower-than-expected adjusted earnings and sales for the recently ended quarter, and cut its full-year earnings guidance, citing demand pressures and stubbornly high raw-material costs.

For the recently ended quarter, the company said its sales increase was driven by price increases across all segments. Volume of protective and marine sales in North America paint stores fell, as did sales volumes outside of North America in the consumer and performance coatings businesses, mostly due to tough prior-year comparisons, the company said. Currency translation rate changes lowered sales by 1.4%.

Sales volume grew in the performance coatings unit’s packaging and coil businesses, the company said.

The company is implementing a 10% price increase across the Americas on Sept. 6, “with significant additional pricing actions being taken in our other two operating segments,” Chief Executive John Morikis said.

Write to Will Feuer at [email protected]

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Credit: www.marketwatch.com /

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