 | 付録99.1 | |||||||||||||||||||
| ニュース | ||||||||||||||||||||
| シャーウィンウィリアムズ | • | 101 W. プロスペクト アベニュー | • | オハイオ州クリーブランド 44115 | • | (216) 566-2000 | ||||||||||||||
シャーウィンウィリアムズ社が2024年第3四半期の財務結果を発表
クリーブランド、2024年10月22日 - シャーウィンウィリアムズ（nyse: SHW）は、2024年9月30日に終了した第3四半期の財務結果を発表しました。比較は特に通知がない限り、前年の第3四半期に対するものです。
概要
•当四半期の連結売上高は0.7%増の61.6億ドルとなった
◦ペイントストアグループの12カ月以上営業している店舗のネット売上高は、四半期で2.2%増加しました。
•希薄化後当期純利益シェア当たりは、第3四半期のシェア当たり$2.95に比べて、四半期ごとに7.8％増の$3.18に増加しました。
◦調整後希薄化当期純利益は、2023年第3四半期の1株あたり$3.20と比較して、四半期で1株あたり$3.37に5.3%増加しました。
•四半期の利息、税金、減価償却および償却前利益（EBITDA）は1.2％増加し、12.8億ドル、つまりネット売上の20.8％となりました
•2024年の当期希薄化後1株当たり当期純利益の範囲を、1株当たり10.30ドルから10.60ドル、1株当たりの取得関連の償却費用を含む0.80ドルまでの範囲で再確認しました
◦2024年の調整後希薄化後当期純利益1株あたりのガイダンスを$11.10から$11.40の範囲で再確認します
CEOの発言
シャーウィンウィリアムズの社長兼最高経営責任者であるHeidi G. Petzは、「需要環境の不安定さが続く中、売上高を伸ばし、粗利率を拡大し、EBITDAおよび調整後希薄化後当期純利益を増加させることができた」と述べました。四半期における強力な現金の生成は、配当と株の取り消しを通じて株主に63100万ドルを還元することを可能にしました。また、四半期に先行投資を選択し、ますます不確かな競争環境から生まれる前例のない長期的機会に対応しました。店舗、営業および技術担当者、さらにサービスの拡大とデジタルツールへの投資によって、当社は持続的かつ利益を上回る市場成長をもたらすことができると確信しています。我々は、SG&Aが順次抑制され、予想通り、下半期に低位から中位の1桁増加が見込まれます。
「ペイントストアグループでは、プロテクティブ＆マリンの売り上げが一桁の伸び率をリードしました。住宅の再塗装への以前の投資が、不況市場での中一桁の成長を牽引し続けました。新築住宅も予想通りの似た伸び率で成長しました。グループはまた、2025年1月6日から有効な5％の価格引き上げを発表しました。消費関連グループの売上は、北アメリカのDIY市場の緩和が続く中で減少しました。パフォーマンスコーティンググループでは、パッケージング事業が一桁の高い百分率で成長し、シェアを取り戻し続けました。また、コイルおよび産業用木材事業でも成長を達成しました。」
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第3四半期の連結結果
| 9月30日終了の3ヶ月 | |||||||||||||||||||||||
| 2024 | 2023 | $ 変化 | % 変化 | ||||||||||||||||||||
| 純売上高 | $ | 6,162.5 | $ | 6,116.7 | $ | 45.8 | 0.7 | % | |||||||||||||||
| 税引前所得 | $ | 1,022.8 | $ | 1,009.0 | $ | 13.8 | 1.4 | % | |||||||||||||||
| 売上高の％として | 16.6% | 16.5% | |||||||||||||||||||||
| １株当たり当期純利益 - 希薄化後 | $ | 3.18 | $ | 2.95 | $ | 0.23 | 7.8 | % | |||||||||||||||
| 調整後純利益1株当たり - 希薄化後 | $ | 3.37 | $ | 3.20 | $ | 0.17 | 5.3 | % | |||||||||||||||
連結純売上高は、主にペイントストアグループの売上が増加したことと2023年の買収の影響により増加しました。これらの増加は、消費関連ブランドおよびパフォーマンスコーティンググループの売上の減少や、約1.0%の不利な外国通貨換算によって部分的に相殺されました。
所得税前の所得は、主に純売上の増加と、管理部門で記録された環境に関する引当金の減少によるものであり、部分的にはペイントストアグループとデジタル技術への継続的な投資によって相殺されています。
希薄化後の当期純利益は、2024年と2023年の第3四半期両方において、取得関連の償却費用として1シェアあたり0.19ドルの費用を含んでいました。2023年の第3四半期では、希薄化後の当期純利益は、会社の再構築計画に関連する活動に関連して1シェアあたり0.06ドルの費用も含んでいました。
第3四半期セグメントの結果
ペイントストアーズグループ（PSG）
| 9月30日終了の3ヶ月 | |||||||||||||||||||||||
| 2024 | 2023 | $ 変更 | % 変化 | ||||||||||||||||||||
| 純売上高 | $ | 3,650.2 | $ | 3,537.1 | $ | 113.1 | 3.2 | % | |||||||||||||||
既存店売上高の変更 (1) | 2.2% | 3.0% | |||||||||||||||||||||
| セグメントの利益 | $ | 895.9 | $ | 917.5 | $ | (21.6) | (2.4) | % | |||||||||||||||
| 報告されたセグメントマージン | 24.5% | 25.9% | |||||||||||||||||||||
(1) 既存店売上高は、開店してから12カ月以上経過した店舗の売上高を示します。
PSGの売上高は、出来高の低一桁成長と年初に実施された販売価格の引き上げが継続的に実感されたため、主に増加しました。保護およびマリン、住宅塗り替え、新築住宅を牽引とする大部分のプロフェッショナル顧客エンドマーケットで売上が増加しました。PSGセグメントの利益は、売上高増加を支援するためのコストが増加し、長期的な成長戦略に対する継続的な投資、高い従業員関連コストの増加により主に減少しましたが、それを部分的に相殺する形で売上高が増加しました。
消費関連ブランドグループ (CBG)
| 9月30日終了の3ヶ月 | |||||||||||||||||||||||
| 2024 | 2023 | 変更額 | % 変化 | ||||||||||||||||||||
| 純売上高 | $ | 790.5 | $ | 854.8 | $ | (64.3) | (7.5) | % | |||||||||||||||
| セグメントの利益 | $ | 165.5 | $ | 101.6 | $ | 63.9 | 62.9 | % | |||||||||||||||
| 報告されたセグメントマージン | 20.9% | 11.9% | |||||||||||||||||||||
調整後のセグメント利益 (1) | $ | 181.4 | $ | 117.6 | $ | 63.8 | 54.3 | % | |||||||||||||||
| 調整後のセグメントマージン | 22.9% | 13.8% | |||||||||||||||||||||
(1) 調整後の セグメント利益は、Valsparの取得に関連する摘要費の影響を除いたセグメント利益に等しい。CBGでは、Valsparの取得に関連する摘要費は、それぞれ2024年第3四半期に1億5900万ドル、2023年に1億6000万ドルでした。
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CBGの純売上高は、主に北アメリカにおけるDIY需要の低下と、ラテンアメリカによる不利な外国currency翻訳からの約4%の影響のために減少しました。CBGセグメントの利益は、セグメント内の製造業と流通業務における固定費の吸収が高く、コスト管理が効果的であったために増加しましたが、純売上高の減少により部分的に相殺されました。 acquisiton関連の償却費は、2024年第3四半期における純売上高に対するセグメント利益の割合を200ベーシスポイント減少させ、2023年第3四半期の190ベーシスポイントと比較されました。
パフォーマンスコーティンググループ（PCG）
| 9月30日終了の3ヶ月 | |||||||||||||||||||||||
| 2024 | 2023 | $ 変更 | % 変化 | ||||||||||||||||||||
| 純売上高 | $ | 1,720.0 | $ | 1,724.2 | $ | (4.2) | (0.2) | % | |||||||||||||||
| セグメントの利益 | $ | 259.7 | $ | 279.7 | $ | (20.0) | (7.2) | % | |||||||||||||||
| 報告されたセグメントマージン | 15.1% | 16.2% | |||||||||||||||||||||
調整後のセグメント利益 (1) | $ | 308.9 | $ | 329.4 | $ | (20.5) | (6.2) | % | |||||||||||||||
| 調整後のセグメントマージン | 18.0% | 19.1% | |||||||||||||||||||||
(1) 調整後のセグメント利益は、Valsparの買収関連の償却費の影響を除いたセグメント利益です。PCGでは、Valsparの買収関連の償却費は、2024年第3四半期で4920万ドル、2023年第3四半期で4970万ドルでした。
PCGの売上高は、2023年の取得を含む売上高の成長によって効果的に横ばいとなりましたが、不利な外国為替の翻訳により完全に相殺されました。成績は、全地域で増加した Packaging を中心に、Coil および Industrial Wood によってリードされました。北米での低い売上高と不利な外国為替の影響により、PCG セグメントの利益は主に減少しました。取得関連の償却費が、2024年第3四半期および2023年において、売上高に対するセグメントの利益を290ベースポイント減少させました。
LIQUIDITY AND CASH FLOW
The Company generated $2.22 billion in Net operating cash and returned cash of $1.97 billion to our shareholders in the form of dividends and repurchases of 4.4 million shares of its common stock during the first nine months of 2024. At September 30, 2024, the Company had remaining authorization to purchase 35.3 million shares of its common stock through open market purchases.
2024 GUIDANCE
| Fourth Quarter | Full Year | ||||||||||||||||
| 2024 | 2024 | ||||||||||||||||
| Net sales | Flat to up low-single digit % | Flat to up low-single digit % | |||||||||||||||
| Effective tax rate | Low twenty percent | ||||||||||||||||
| Diluted net income per share | $10.30 | - | $10.60 | ||||||||||||||
Adjusted diluted net income per share (1) | $11.10 | - | $11.40 | ||||||||||||||
(1) Excludes $0.80 per share of acquisition-related amortization expense.
“In what remains a tough macroeconomic environment, our strategy continues to be providing our customers with differentiated solutions that make them more productive and profitable,” said Ms. Petz. “We are confident the growth and efficiency investments we have made will enable us to continue outperforming the market. Our team is focused, determined and experienced, and we will continue to aggressively pursue above market growth while controlling what we can control.
“In our pro architectural business, demand remains variable by end market, with no impact to date from recent interest rate cuts. North American DIY demand remains weak driven by inflation and higher consumer debt levels. In our industrial businesses, demand remains choppy by end market and region. Against this backdrop, we expect
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fourth quarter 2024 consolidated net sales to be flat to up a low-single digit percentage compared to the fourth quarter of 2023.
“We are maintaining our previous full year earnings guidance, recognizing the current range is wider than typical entering a fourth quarter. This range accounts for several variables that are hard to forecast precisely, including demand related to recovery from hurricanes Helene and Milton, and the potential for extended holiday shutdowns by industrial customers. Specifically, we expect full year 2024 sales to be flat to up a low-single digit percentage compared to full year 2023. We continue to guide to full year 2024 diluted net income per share of $10.30 to $10.60 per share, including acquisition-related amortization expense of $0.80 per share, compared to $9.25 per share in 2023. Our adjusted diluted net income per share guidance remains $11.10 to $11.40 per share, an increase of 8.7% at the mid-point compared to 2023.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its financial results for the third quarter, and its outlook for the fourth quarter and full year 2024, at 10:00 a.m. EDT on Tuesday, October 22, 2024. Heidi G. Petz, Sherwin-Williams President and Chief Executive Officer, along with other senior executives, will participate on the call.
The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q3 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson’s® WaterSeal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 Company-operated stores and branches, while the Company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains “forward-looking statements,” as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. Forward-looking statements can be identified by the use of forward-looking words such as “believe,” “expect,” “estimate,” “project,” “plan,” “goal,” “target,” “potential,” “intend,” “aspire,” “strive,” “may,” “will,” “should,” “could,” “would,” “seek” or “anticipate” or the negative thereof or comparable words. Any statements that refer to expectations, projections or other characterizations of future events or conditions, are forward-looking statements. Forward-looking statements are based upon management’s current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside the control of the Company and actual results may differ materially from such statements and from the Company’s historical performance, results and experience. These risks, uncertainties and other factors include such things as: general business conditions, including the strength of retail and manufacturing economies and growth in the coatings industry; adverse changes in general economic conditions, including the inflationary environment, global credit markets, and currency fluctuations; any disruption in the availability of, or increases in the price of, raw material and energy supplies; disruptions in the supply chain; catastrophic events, adverse weather conditions and natural disasters; losses of or changes in our relationships with customers and suppliers; our ability to successfully integrate past and future acquisitions; risks and uncertainties associated with our expansion into and our operations in foreign markets; cybersecurity incidents and other disruptions to our information technology systems; our ability to attract, retain, develop and progress a qualified global workforce; our ability to execute on our business strategies related to sustainability matters, and achieve related expectations; damage to our business, reputation, image or brands due to negative publicity; our ability to protect or enforce our material trademarks and other intellectual property rights; our ability to comply with numerous and evolving laws, rules and regulations; adverse changes to our tax positions; increasingly stringent domestic and foreign governmental regulations; inherent uncertainties involved in assessing our potential liability for environmental-related activities; other changes in governmental policies, laws and regulations; the nature, cost, quantity and outcome of pending and future litigation and other claims; and other risks, uncertainties and factors described from time to time in the Company’s reports filed with the Securities and Exchange Commission. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
INVESTOR RELATIONS CONTACTS:
Jim Jaye
Senior Vice President, Investor Relations & Corporate Communications
Direct: 216.515.8682
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
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| The Sherwin-Williams Company and Subsidiaries | |||||||||||||||||||||||
| Statements of Consolidated Income (Unaudited) | |||||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net sales | $ | 6,162.5 | $ | 6,116.7 | $ | 17,801.3 | $ | 17,799.7 | |||||||||||||||
| Cost of goods sold | 3,135.0 | 3,200.5 | 9,179.4 | 9,590.3 | |||||||||||||||||||
| Gross profit | 3,027.5 | 2,916.2 | 8,621.9 | 8,209.4 | |||||||||||||||||||
| Percent to net sales | 49.1 | % | 47.7 | % | 48.4 | % | 46.1 | % | |||||||||||||||
| Selling, general and administrative expenses | 1,893.7 | 1,756.5 | 5,539.2 | 5,209.5 | |||||||||||||||||||
| Percent to net sales | 30.7 | % | 28.7 | % | 31.1 | % | 29.3 | % | |||||||||||||||
| Other general expense (income) - net | 0.7 | 61.9 | (30.9) | 39.9 | |||||||||||||||||||
| Impairment | — | — | — | 34.0 | |||||||||||||||||||
| Interest expense | 103.4 | 101.9 | 317.2 | 322.9 | |||||||||||||||||||
| Interest income | (2.6) | (5.1) | (9.6) | (15.8) | |||||||||||||||||||
| Other expense (income) - net | 9.5 | (8.0) | (30.2) | (17.0) | |||||||||||||||||||
| Income before income taxes | 1,022.8 | 1,009.0 | 2,836.2 | 2,635.9 | |||||||||||||||||||
| Income taxes | 216.6 | 247.5 | 634.9 | 603.3 | |||||||||||||||||||
| Net income | $ | 806.2 | $ | 761.5 | $ | 2,201.3 | $ | 2,032.6 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 3.22 | $ | 2.98 | $ | 8.76 | $ | 7.94 | |||||||||||||||
| Diluted | $ | 3.18 | $ | 2.95 | $ | 8.65 | $ | 7.85 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 250.6 | 255.1 | 251.4 | 255.9 | |||||||||||||||||||
| Diluted | 253.9 | 258.4 | 254.6 | 258.8 | |||||||||||||||||||
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| The Sherwin-Williams Company and Subsidiaries | |||||||||||||||||||||||
| Business Segments (Unaudited) | |||||||||||||||||||||||
| (millions of dollars) | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Net | Segment | Net | Segment | ||||||||||||||||||||
| Sales | Profit (Loss) | Sales | Profit (Loss) | ||||||||||||||||||||
| Three Months Ended September 30: | |||||||||||||||||||||||
| Paint Stores Group | $ | 3,650.2 | $ | 895.9 | $ | 3,537.1 | $ | 917.5 | |||||||||||||||
| Consumer Brands Group | 790.5 | 165.5 | 854.8 | 101.6 | |||||||||||||||||||
| Performance Coatings Group | 1,720.0 | 259.7 | 1,724.2 | 279.7 | |||||||||||||||||||
| Administrative | 1.8 | (298.3) | 0.6 | (289.8) | |||||||||||||||||||
| Consolidated totals | $ | 6,162.5 | $ | 1,022.8 | $ | 6,116.7 | $ | 1,009.0 | |||||||||||||||
| Nine Months Ended September 30: | |||||||||||||||||||||||
| Paint Stores Group | $ | 10,143.1 | $ | 2,296.2 | $ | 9,894.9 | $ | 2,293.5 | |||||||||||||||
| Consumer Brands Group | 2,445.8 | 523.3 | 2,673.3 | 305.7 | |||||||||||||||||||
| Performance Coatings Group | 5,208.3 | 798.9 | 5,228.9 | 771.3 | |||||||||||||||||||
| Administrative | 4.1 | (782.2) | 2.6 | (734.6) | |||||||||||||||||||
| Consolidated totals | $ | 17,801.3 | $ | 2,836.2 | $ | 17,799.7 | $ | 2,635.9 | |||||||||||||||
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| The Sherwin-Williams Company and Subsidiaries | |||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
| (millions of dollars) | |||||||||||
| September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 238.2 | $ | 503.4 | |||||||
| Accounts receivable, net | 2,973.4 | 2,940.9 | |||||||||
| Inventories | 2,267.4 | 2,244.3 | |||||||||
| Other current assets | 495.3 | 510.2 | |||||||||
| Total current assets | 5,974.3 | 6,198.8 | |||||||||
| Property, plant and equipment, net | 3,344.7 | 2,580.6 | |||||||||
| Goodwill | 7,657.0 | 7,412.3 | |||||||||
| Intangible assets | 3,656.9 | 3,824.0 | |||||||||
| Operating lease right-of-use assets | 1,890.0 | 1,874.7 | |||||||||
| Other assets | 1,445.4 | 1,114.1 | |||||||||
| Total assets | $ | 23,968.3 | $ | 23,004.5 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Short-term borrowings | $ | 915.5 | $ | 338.6 | |||||||
| Accounts payable | 2,537.7 | 2,424.8 | |||||||||
| Compensation and taxes withheld | 726.0 | 768.3 | |||||||||
| Accrued taxes | 214.5 | 379.8 | |||||||||
| Current portion of long-term debt | 1,048.9 | 1,098.2 | |||||||||
| Current portion of operating lease liabilities | 462.8 | 441.1 | |||||||||
| Other accruals | 1,312.7 | 1,172.4 | |||||||||
| Total current liabilities | 7,218.1 | 6,623.2 | |||||||||
| Long-term debt | 8,175.3 | 8,499.2 | |||||||||
| Postretirement benefits other than pensions | 133.2 | 139.3 | |||||||||
| Deferred income taxes | 631.7 | 648.4 | |||||||||
| Long-term operating lease liabilities | 1,496.5 | 1,502.9 | |||||||||
| Other long-term liabilities | 2,157.4 | 1,811.5 | |||||||||
| Shareholders’ equity | 4,156.1 | 3,780.0 | |||||||||
| Total liabilities and shareholders’ equity | $ | 23,968.3 | $ | 23,004.5 | |||||||
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Regulation G Reconciliations
Management of the Company utilizes certain financial measures that are not in accordance with U.S. generally accepted accounting principles (US GAAP) to analyze and manage the performance of the business. Management provides non-GAAP information in reporting its financial results to give investors additional data to evaluate the Company’s operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with US GAAP.
Management believes that investors’ understanding of the Company’s operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company’s revenue generation, the related revenue is not excluded. This adjusted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for earnings per share computed in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with US GAAP to adjusted diluted net income per share.
| Year Ending | |||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | December 31, 2024 | |||||||||||||||||||||||||||||||||
| September 30, 2024 | September 30, 2024 | (after-tax guidance) | |||||||||||||||||||||||||||||||||
| Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | Low | High | ||||||||||||||||||||||||||||
| Diluted net income per share | $ | 3.18 | $ | 8.65 | $ | 10.30 | $ | 10.60 | |||||||||||||||||||||||||||
Acquisition-related amortization expense (2) | $ | .26 | $ | .07 | $ | .19 | $ | .77 | $ | .18 | $ | .59 | $ | .80 | $ | .80 | |||||||||||||||||||
| Adjusted diluted net income per share | $ | 3.37 | $ | 9.24 | $ | 11.10 | $ | 11.40 | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||||||||||||||||
| September 30, 2023 | September 30, 2023 | December 31, 2023 | |||||||||||||||||||||||||||||||||
| Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | |||||||||||||||||||||||||||
| Diluted net income per share | $ | 2.95 | $ | 7.85 | $ | 9.25 | |||||||||||||||||||||||||||||
| Items related to Restructuring Plan: | |||||||||||||||||||||||||||||||||||
| Severance and other | $ | — | $ | — | — | $ | .06 | $ | .02 | .04 | $ | .06 | $ | .02 | .04 | ||||||||||||||||||||
| Impairment of assets related to China divestiture | — | — | — | .13 | .08 | .05 | .13 | .08 | .05 | ||||||||||||||||||||||||||
| Gain on divestiture of domestic aerosol business | — | — | — | (.08) | (.02) | (.06) | (.08) | (.02) | (.06) | ||||||||||||||||||||||||||
Discrete income tax expense related to China divestiture (1) | — | (.06) | .06 | — | (.06) | .06 | — | (.06) | .06 | ||||||||||||||||||||||||||
| Total | — | (.06) | .06 | .11 | .02 | .09 | .11 | .02 | .09 | ||||||||||||||||||||||||||
| Impairment related to trademarks | — | — | — | — | — | — | .09 | .02 | .07 | ||||||||||||||||||||||||||
| Devaluation of the Argentine Peso | — | — | — | — | — | — | .16 | — | .16 | ||||||||||||||||||||||||||
Acquisition-related amortization expense (2) | .25 | .06 | .19 | .78 | .18 | .60 | 1.03 | .25 | .78 | ||||||||||||||||||||||||||
| Adjusted diluted net income per share | $ | 3.20 | $ | 8.54 | $ | 10.35 | |||||||||||||||||||||||||||||
(1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.
(2) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives.
9
Management believes that investors’ understanding of the Company’s operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before income taxes and Interest expense, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management further believes enhances investors’ understanding of the Company’s operating performance. The reader is cautioned that the Company’s EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income or Net operating cash as an indicator of operating performance or as a measure of liquidity. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.
| (millions of dollars) | |||||||||||||||||||||||
| Three Months | Three Months | Three Months | Nine Months | ||||||||||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||||||||||
| March 31, 2024 | June 30, 2024 | September 30, 2024 | September 30, 2024 | ||||||||||||||||||||
| Net income | $ | 505.2 | $ | 889.9 | $ | 806.2 | $ | 2,201.3 | |||||||||||||||
| Interest expense | 103.0 | 110.8 | 103.4 | 317.2 | |||||||||||||||||||
| Income taxes | 134.8 | 283.5 | 216.6 | 634.9 | |||||||||||||||||||
| Depreciation | 71.1 | 71.8 | 74.4 | 217.3 | |||||||||||||||||||
| Amortization | 82.1 | 81.5 | 81.2 | 244.8 | |||||||||||||||||||
| EBITDA | $ | 896.2 | $ | 1,437.5 | $ | 1,281.8 | $ | 3,615.5 | |||||||||||||||
| Three Months | Three Months | Three Months | Nine Months | ||||||||||||||||||||
| Ended | Ended | Ended | Ended | ||||||||||||||||||||
| March 31, 2023 | June 30, 2023 | September 30, 2023 | September 30, 2023 | ||||||||||||||||||||
| Net income | $ | 477.4 | $ | 793.7 | $ | 761.5 | $ | 2,032.6 | |||||||||||||||
| Interest expense | 109.3 | 111.7 | 101.9 | 322.9 | |||||||||||||||||||
| Income taxes | 137.4 | 218.4 | 247.5 | 603.3 | |||||||||||||||||||
| Depreciation | 70.4 | 75.7 | 71.9 | 218.0 | |||||||||||||||||||
| Amortization | 83.7 | 83.0 | 83.5 | 250.2 | |||||||||||||||||||
| EBITDA | $ | 878.2 | $ | 1,282.5 | $ | 1,266.3 | $ | 3,427.0 | |||||||||||||||
| Restructuring expense | 0.9 | 8.7 | — | 9.6 | |||||||||||||||||||
| Impairment of assets related to China divestiture | — | 34.0 | — | 34.0 | |||||||||||||||||||
| Gain on divestiture of domestic aerosol business | — | (20.1) | — | (20.1) | |||||||||||||||||||
| Adjusted EBITDA | $ | 879.1 | $ | 1,305.1 | $ | 1,266.3 | $ | 3,450.5 | |||||||||||||||
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| The Sherwin-Williams Company and Subsidiaries | |||||||||||||||||||||||
| Selected Information (Unaudited) | |||||||||||||||||||||||
| (millions of dollars, except store count data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Depreciation | $ | 74.4 | $ | 71.9 | $ | 217.3 | $ | 218.0 | |||||||||||||||
| Capital expenditures | 235.3 | 152.9 | 770.0 | 568.9 | |||||||||||||||||||
| Cash dividends | 182.5 | 155.6 | 543.6 | 468.4 | |||||||||||||||||||
| Amortization of intangibles | 81.2 | 83.5 | 244.8 | 250.2 | |||||||||||||||||||
| Significant components of Other general expense (income) - net: | |||||||||||||||||||||||
| Provisions for environmental matters - net | $ | 2.8 | $ | 39.4 | $ | (7.7) | $ | 52.7 | |||||||||||||||
| Gain on divestiture of domestic aerosol business | — | — | — | (20.1) | |||||||||||||||||||
| (Gains) losses on sale or disposition of assets | (2.0) | 12.7 | (25.2) | (8.1) | |||||||||||||||||||
| Other | (0.1) | 9.8 | 2.0 | 15.4 | |||||||||||||||||||
| Significant components of Other expense (income) - net: | |||||||||||||||||||||||
| Net investment gains | $ | (1.9) | $ | (0.5) | $ | (10.8) | $ | (19.2) | |||||||||||||||
| Net expense from banking activities | 3.6 | 3.1 | 11.3 | 10.9 | |||||||||||||||||||
| Foreign currency transaction related losses - net | 6.8 | 1.1 | 9.8 | 24.7 | |||||||||||||||||||
Other (1) | 1.0 | (11.7) | (40.5) | (33.4) | |||||||||||||||||||
| Store Count Data: | |||||||||||||||||||||||
| Paint Stores Group - net new stores | 19 | 16 | 45 | 36 | |||||||||||||||||||
| Paint Stores Group - total stores | 4,739 | 4,660 | 4,739 | 4,660 | |||||||||||||||||||
| Consumer Brands Group - net new stores | 3 | 3 | 10 | 9 | |||||||||||||||||||
| Consumer Brands Group - total stores | 328 | 316 | 328 | 316 | |||||||||||||||||||
| Performance Coatings Group - net new branches | — | (1) | 2 | 1 | |||||||||||||||||||
| Performance Coatings Group - total branches | 324 | 318 | 324 | 318 | |||||||||||||||||||
(1) Consists of items of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company. | |||||||||||||||||||||||
11