03. Sherwin-Williams
Cleveland, Ohio/USA
www.sherwin-williams.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1866
REVENUE: $7.426 billion t (2015: $10.24 billion)
(Note: Sherwin-Williams reported total revenue of $11,855,602 billon for fiscal 2016.
However, for purposes of this report, sales of painting tools and equipment in the Paint Stores
Group are not reported as part of coatings revenue. The above is Coatings World’s estimate.)
MARKETS SERVED
Architectural coatings; Industrial coatings; Protective and marine coatings; OEM product
finishes ; Wood finishes; Aerospace coatings
KEY EXECUTIVES
John Morikis, chairman, president and CEO; Allen J. Mistysyn, senior vice president – finance
and CFO; Sean Hennessy, senior VP, corporate planning, development and administration;
and Jane Cronin, corporate controller.
The Sherwin-Williams Company reported $11,855,602 bil- lion in net sales for 2016. Minus the sale of painting tools and equipment in the company’s Paint Store Group,
Coatings World estimates the company’s paint and coatings sales to be
approximately $7.426 billion.
Its Paints Stores Group is the leading operator of specialty paint stores
in North America, with more than
4,000 stores located throughout the
U.S., Canada and the Caribbean region and represents 65. 7 percent of
total sales. Its Paint Stores Group
includes Sherwin-Williams branded
paints and stains. Major brands include Sherwin-Williams, MAB, Pro-Mar and SuperPaint. The Consumer Group comprises 13. 4 percent
of sales and sells branded, private label and licensed brand paints,
stains, varnishes, industrial products, wood finishing products,
aerosols, caulks and adhesives. Major brands include Dutch Boy,
Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes
Group comprises 15. 9 percent of total sales and manufactures and
sells a wide range of OEM product finishes, protective and marine
coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and
Baco. The Latin America Coatings Group encompasses 5 percent of
total sales. It manufactures a wide range of architectural paints and
industrial coatings throughout Latin America.
John Morikis, chairman, president and CEO of Sherwin-Williams noted in his annual shareholders letter that 2016 was a year
of many financial milestones, including record sales for the sixth
consecutive year and record earnings for the fifth straight year.
“Excluding expenses related to the Valspar
acquisition, EBITDA eclipsed $2 billion for the
first time in our history and profit before tax,
net income and earnings per share all increased
by double-digit percentages,” he said. “Cash
from operations surpassed $1.3 billion, and we
finished the year with a cash balance of $889.8
million, which will be used to reduce the amount
of debt required to complete the Valspar acquisition. Consolidated net sales for the year increased 4. 6 percent
to $11.86 billion. Revenue growth was aided by a change in
revenue classification related to grossing up third-party service revenue, which increased annual sales by 1.1 percent. The
positive effect of the change in revenue classification was more
than offset by currency devaluation, which decreased revenue
in U.S. dollars by 1.4 percent. Continued weak demand for certain industrial coatings products — particularly those used to
maintain oil and gas production and storage assets and mining
equipment — also negatively affected sales volumes throughout
the year.
150 Year Celebration
Last year marked a milestone year for Sherwin-Williams as the
Company celebrated its 150th anniversary with employees, customers and partners by highlighting the company’s long-standing commitment to innovation, color and community.
Founded in 1866 by Henry Sherwin and Edward Williams, the
company launched the Celebration 150 initiative to honor the rich
history and contributions from all employees, who today total
more than 40,000 people worldwide. Sherwin-Williams hosted
celebrations around the world, including the U.S., South America,
Europe and Asia. In May, the Company hosted an event near its
world headquarters in Cleveland, and John Morikis and other
members of the management team rang the opening bell at the
New York Stock Exchange.
Sherwin-Williams also marked the anniversary with community
outreach programs worldwide. Throughout the year employees participated in paint renovation projects in schools, churches, community centers and other deserving organizations in many locations
around the world.
Acquisition of Valspar
Sherwin-Williams has completed its acquisition of Valspar. With
corporate headquarters in Cleveland, Ohio, the combined company generated pro forma 2016 revenues of $15.8 billion and
employs approximately 60,000 associates worldwide. It has a
prominent market position in architectural paint in North America, South America, China, Australia and the UK. In industrial
coatings, the combined company is a global market leader in
packaging coatings, coil coatings, general industrial coatings and
industrial wood coatings.
John Morikis
