WASHINGTON (dpa-AFX) - Paint maker Sherwin-Williams Co. (SHW), Thursday said its first-quarter profit declined from a year ago despite a nine percent growth in revenues, as higher costs impacted the bottom line. Both earnings and revenues for the quarter came in ahead of analysts' estimates.
The Cleveland, Ohio-based company's first quarter profit dropped to $115.46 million from $116.19 million a year ago. On a per share basis, earnings increased to $1.14 from $1.11 per share last year, on lower number of share outstanding. On average, 19 analysts polled by Thomson Reuters expected earnings of $1.11 per share for the quarter. Analysts' estimates typically exclude special items.
Sherwin-Williams' net sales for the quarter grew 9.2 percent to $2.37 billion from $2.17 billion a year ago. Analysts estimated revenues of $2.36 billion for the quarter. Sales increase was attributed to higher paint sales volume in Paint Stores Group and acquisitions.
Net sales in the Paint Stores Group increased 16.4 percent to $1.36 billion due primarily to higher architectural paint sales volume across all end market segments and acquisitions.
Consumer Group sales increased 5.4 percent to $325.3 million, while Global Finishes Group's sales increased 2.2 percent to $497.6 million.
Selling, general and administrative expenses for the quarter increased to $884.09 million from $778.68 million a year earlier.
Looking ahead to the second quarter, the company expects earnings of $2.80 to $3.00 per share and sales growth of 8 to 14 percent. Analysts currently expect earnings of $2.86 per share on revenue growth of 10.50 percent.
For full-year 2014, the company continues to see earnings of $8.12 to $8.32 per share and sales growth of 8 to 13 percent. Analysts currently see earnings of $8.45 per share and revenue growth of 9.20 percent.
SHW is currently trading at $196.00, up $3.75 or 1.95%, on the NYSE.
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