• 4Q18 consolidated net sales increased approximately 2% compared to 4Q17
• FY18 diluted net income per share expected to be approximately $11.15 per share
• Adjusted FY18 diluted net income per share expected to be approximately $18.53, excluding acquisition-related costs and other non-operating expenses of $4.66 and $2.72 per share, respectively
• Prior adjusted FY18 guidance was $19.05 to $19.20 per share, excluding acquisition-related costs and other non-operating expenses of $3.86 and $1.34 per share, respectively
• Conference call at 8:30 a.m. EST today to discuss preliminary results
• Company to provide detailed 4Q18 and FY18 results and 2019 outlook on January 31st as previously announced
  

The Sherwin-Williams Company (NYSE: SHW) announced preliminary unaudited sales and earnings results for the fourth quarter and full year ended December 31, 2018.

Consolidated net sales in the fourth quarter increased approximately 2% compared to fourth quarter 2017.
Previous guidance called for a mid-single digit percentage increase. Preliminary net sales from stores in the U.S and Canada open for more than twelve calendar months increased approximately 3% in the quarter.

Based primarily on the lower fourth quarter sales and non-operating expenses expected to be recognized in the fourth quarter, diluted net income per share for the full year 2018 is now expected to be approximately $11.15 per share compared to guidance of $13.85 to $14.00 per share provided on October 25, 2018. Adjusted diluted net income per share for the full year is expected to be approximately $18.53, which excludes acquisition-related costs and other non-operating expenses of $4.66 and $2.72 per share, respectively, compared to the October adjusted guidance of $19.05 to $19.20 per share, which excludes acquisition-related costs and other non-operating expenses of $3.86 and $1.34 per share, respectively. The Company reported diluted net income per share from continuing operations of $19.11 per share for the full year 2017, or $15.07 on an adjusted basis, excluding a $7.04 per share benefit related to tax reform and acquisition-related costs of $3.00 per share.

(Street sees FY18 EPS of $19.11 on revenue of $17.66 billion)

Commenting on the preliminary results, Chairman, President and Chief Executive Officer John G. Morikis said, “Our performance in the fourth quarter was disappointing across the board relative to our outlook back in October. Consolidated revenue growth for the fourth quarter fell well short of our previous expectation, due in large part to weak sales growth by our North American stores in October and November. Store sales rebounded somewhat in December, but not enough to bring in the quarter. Sales for our Consumer Brands and Performance Coatings Groups also fell short of expectations. The revenue shortfall was the primary driver of the significant earnings per share miss in the quarter. Given the lower preliminary results for our fourth quarter, our full year preliminary adjusted net income per share is $18.53 per share, or about 3% below the midpoint of our previous guidance range. This full year 2018 adjusted earnings per share is an increase of approximately 23% over full year 2017 on a comparable basis.”