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Dec 31, 2021
Sherwin-Williams Q4 2021 Earnings Report
Sherwin-Williams reported a sales increase driven by price and volume, but earnings were negatively impacted by raw material costs.
Key Takeaways
Sherwin-Williams reported a 6.1% increase in consolidated net sales for the fourth quarter, driven by selling price increases and higher product sales volume in the Performance Coatings Group. However, diluted net income per share decreased to $1.15, and adjusted diluted net income per share was $1.34, impacted by lower sales volumes in The Americas Group and the Consumer Brands Group, as well as higher raw material costs.
Consolidated net sales increased by 6.1% due to selling price increases and higher product sales volume in the Performance Coatings Group.
Diluted net income per share was $1.15, including a charge of $0.19 per share for acquisition-related amortization expense.
The Americas Group's net sales increased by 3.0% due to selling price increases, offset by lower sales volume of paint products.
Performance Coatings Group's net sales increased by 18.7% due to higher sales in all end markets and selling price increases.
Revenue by Segment
Forward Guidance
The company expects first quarter 2022 consolidated net sales will be up a low to mid-single digit percentage compared to the first quarter 2021. For the full-year 2022, the company anticipates its consolidated net sales will increase by a high single digit to low double digit percentage from 2021.
Positive Outlook
- Demand remains strong across our end markets.
- Full year raw material costs to remain elevated but to moderate sequentially.
- Continue to implement pricing actions as appropriate to offset increased costs.
- Expect to outgrow the market long-term.
- Strong cash generation will enable us to continue to make strategic growth investments in our business.
Challenges Ahead
- Raw material availability issues to persist through the first quarter.
- COVID-related issues to persist through the first quarter.
- Near-term headwinds are expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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