The Sherwin-Williams Company
Cleveland, Ohio/USA
www.sherwin-williams.com
PUBLIC COMPANY
SEGMENT BREAKDOWN
YEAR ESTABLISHED: 1866
• Paint Stores Group: 59%
HEADCOUNT: 30,700 (2008)
• Consumer Group: 17%
COATINGS REVENUES: $5.824 billion ; (2008: $6.521)
• Global Finishes Group: 23%
TOTAL REVENUES: $7.094 billion ; (2008: $7.979)
NET INCOME: $435 million ; (2008: $476)
(sales of painting tools and equipment in the Paint Stores Group are not reported as part of coatings revenues)
KEY PEOPLE
Christopher M. Connor, chairman and CEO; John G. Morikis,
president and COO; Sean P. Hennessy, senior vice president
and CFO.
The largest of Sherwin-Williams’ three business seg- ments, the Paint Stores Group, finished 2009 at $4.21 billion, a decline of 12. 9 percent from 2008,
while segment profit decreased 7. 4 percent to $600.2 million. Due to its heavy mix of sales to professional painting
contractors, this segment had a tough time during the
recession. According to the company, industry-wide coating
sales to professional painters declined more sharply than
sales to DIY homeowners in 2009 for two reasons. First,
because the hardest hit end markets—new residential and
commercial construction—are painted exclusively by professionals. Second, cautious homeowners were understandably
hesitant to hire contractors to do work they believe they can
do themselves.
Sherwin-Williams believes the professional painter will be
the fastest growing customer segment in the coatings market
over the longer term, and pros prefer to shop at specialty paint
stores for supplies and equipment. As a result, Sherwin-Williams continued to invest in new store locations in 2009.
During the year it opened 53 stores in new markets and consolidated an additional 45 redundant store locations, for a net
increase of eight new stores for the year. The store count in the
U.S., Canada and the Caribbean now stands at 3,354.
Sherwin-Williams’ Consumer Group fulfills a dual mission for the company—supplying branded and private label
products to retailers throughout North America and supporting the Paint Stores Group with new product research
and development, manufacturing, distribution and logistics. The group operates 25 manufacturing plants and six
distribution centers in North America.
Sales for the Consumer Group declined 3. 7 percent to
$1.23 billion for the year, primarily as a result of weak
end market demand across most of the group’s retail customers. Segment profit for the year increased 12.2 percent to $157.4 million. In response to the continued deterioration in sales volume in North America, Consumer
Group closed or idled an additional four manufacturing
facilities and five distribution service centers.
Sales for the Global Finishes Group decreased 11. 4
percent to $1.65 billion. Global Finishes Group manufac-
tures and sells OEM finishes, automotive finishes, pro-
tective and marine coatings and architectural coatings to
a growing customer base around the world.
Expanding its Global Footprint
Sherwin-Williams recently completed construction of a new 215,000
square foot factory in Zhaoqing, China to serve its growing business with
electronics and furniture manufacturers in South China. The company
also announced plans to build a new blending facility in Langfang in North
China, scheduled to open in June 2010.
Sherwin-Williams now operates five manufacturing plants and six blending facilities in China, Malaysia, Vietnam, the Philippines and Singapore, and
research and development centers in China, Vietnam and Malaysia.
In Central Europe, during the first quarter of 2009, Sherwin-Williams
acquired Altax Sp. zo.o. (Altax). Headquartered in Poznan, Poland, Altax is
a leading innovator of protective wood care coatings and serves multiple
channels, including industrial, professional and DIY. Included in the
Consumer Group, the acquisition provides a platform for further growth in
Central Europe.
