04
The Sherwin-Williams Company
Cleveland, OH/USA
www.sherwin-williams.com
PUBLIC COMPANY
HEADCOUNT: 30,700
YEAR ESTABLISHED: 1866
COATINGS REVENUES: $6.521 billion
TOTAL REVENUES: $7.979 billion
(sales of painting tools and equipment in the Paint Stores
Group are not reported as part of coatings revenues)
SEGMENT BREAKDOWN
• Paint Stores Group: 61%
• Consumer Group: 16%
• Global Finishes Group: 23%
KEY PEOPLE
Christopher M. Connor, chairman and CEO; John G. Morikis,
president and COO; Sean P. Hennessy, senior vice president
and CFO.
Net sales for Sherwin-Williams’ paint stores group decreased 2.4% to $4.83 billion in 2008 due to declines in domestic new home construction and
existing home turnover. While 2008 didn’t get off to a bad
start, by the fourth quarter, architectural and industrial
coatings demand was down in virtually every market segment compared to 2007.
Sherwin-Williams closed 79 store locations and consolidated sales territories. The paint store group also implemented price increases. While some store locations closed,
the company was still active opening 100 new paint stores,
finishing the year with 3,346 stores in the U.S., Canada and
the Caribbean compared to 3,325 at the end of 2007.
The paint stores group also launched Resilience exterior
latex paint with MoistureGuard and cures in half the time of
conventional latex paints so contractors and homeowners
can paint without worrying about dew or impending rain.
The consumer group supplies branded and private label
products to retailers throughout North America and supports the paint stores group with new product research and
development, manufacturing, distribution and logistics. It
operates 30 manufacturing plants and 11 distribution centers in North America. Sales for the consumer group
decreased three percent to $1.27 billion for the year, primarily as a result of weakening sales to DIY customers.
Lastly, sales for the global finishes group increased $139
million, or 7.8%, to $1.87 billion in 2008. The group manufactures and sells OEM finishes, automotive finishes, protective and marine coatings and architectural coatings to a
growing customer base around the world.
In addition to well-established operations in Brazil,
Argentina, Chile, Mexico, England and Ireland, Sherwin-Williams continues to expand its presence in many emerging markets around the world. In 2008, the group opened
22 new branches including its first company-operated locations in India. The group has a total of 541 company-operated branches.
On the acquisition front in 2008, Sherwin-Williams
completed three deals that bolstered its global manufac-
turing capacity and product offering in the OEM finishes
and protective and marine coatings markets. In
February, it acquired Becker Powder Coatings, a U.S.-based subsidiary of AB Wilh. Becker based in Sweden.
Becker produces powder coatings used in the manufacture of household appliances, metal furniture, fixtures
and electronics.
In July, the company acquired the liquid coatings subsidiaries of Inchem Holdings, a supplier of coatings to
furniture, cabinet, flooring and electronics manufacturers throughout Asia. Headquartered in Singapore,
Inchem operates plants in China, Vietnam and Malaysia.
In December, Sherwin closed on the acquisition of
Euronavy-Tintas Maritimas e Industriais S.A. of
Portugal. Euronavy is a supplier of marine and protective
coatings applied to ships, off-shore platforms, storage
tanks, steel, concrete and flooring. ;
Source: Sherwin-Williams’ annual report
CONSUMER GROUP LAUNCHES DUTCH BOY REFRESH
In 2008, Sherwin-Williams’ consumer group introduced Dutch Boy Refresh interior latex paint, a new
wall paint that is designed to remove from the air
common household odors caused by pets, food, smoke,
mold and mildew. It also has zero VOCs and is
Greenguard Indoor Air Quality Certified.
