Sherwin-Williams Warns On Q2 Sales; Cuts FY20 Forecast Due To Covid-19

(RTTNews) - While announcing higher first-quarter results on Wednesday, Sherwin-Williams Co (SHW), a paint and coating manufacturer, said it expects second-quarter consolidated net sales to decrease by a low-to-mid-teens percentage versus the last year.

Further, the company trimmed its fiscal 2020 earnings and sales forecast due to COVID-19 pandemic.

For the year, the company now expects net income per share in a range of $16.46 to $18.46 per share, including acquisition-related amortization expense of $2.54 per share. The previous outlook was $19.91 to $20.71 per share, including acquisition-related costs of $2.79 per share. In fiscal 2019, the company's earnings were $16.49 per share.

On average, 29 analysts polled by Thomson Reuters expect earnings of $21.07 per share. Analysts' estimates typically exclude special items.

Further, the company revised sales guidance to reflect uncertainties in the timing and pace of improvement in the U.S. and global operating environment.

If economic conditions begin returning to normal in the third quarter 2020 and continue improving through the fourth quarter 2020, full year consolidated net sales are expected to be flat to down a low single digit percentage.

If economic conditions do not materially improve until the first quarter 2021, full year 2020 consolidated net sales are expected to decrease by a mid-to-high single digit percentage.

The company previously expected sales to increase 2 percent to 4 percent.

John Morikis, Chairman and Chief Executive Officer, said, "We anticipate that the rapid deterioration of the U.S. and global economies experienced late in the first quarter due to the COVID-19 pandemic will most likely continue through the second quarter. We see no immediate, meaningful improvement ahead in most end markets we serve, and we are unable to predict when any noticeable improvement will occur."