Q2 2024 Sherwin-Williams Co Earnings Call Transcript
Key Points
- Sherwin-Williams Co (SHW) delivered a strong quarter with consolidated sales within the guided range, gross margin expansion, and double-digit growth in diluted earnings per share and EBITDA.
- The company returned $613 million to shareholders through dividends and share repurchases, marking a 57% increase year over year.
- The Paint Stores Group saw sales increase by mid-single digits, with segment margin rising to 25.1%, driven by higher sales and moderating raw material costs.
- Sherwin-Williams Co (SHW) opened 26 net new stores year to date and expects to open 80 to 100 for the full year.
- The Performance Coatings Group achieved an adjusted segment margin improvement to 19.4%, reflecting strong margin performance and customer success in end markets that value differentiation.
- Sales in the Consumer Brands Group underperformed expectations due to a softer market, lower volume, and unfavorable currency translation.
- North American sales in the Consumer Brands Group decreased by a high single-digit percentage, impacted by weak existing home sales, inflation, depleted savings, and household debt.
- Sales outside North America in the Consumer Brands Group decreased by a high single-digit percentage in Latin America and a double-digit percentage in Europe.
- The company acknowledged project delays in the Protective and Marine segment, although they feel positive about the pipeline.
- Sherwin-Williams Co (SHW) reduced its Consumer Brands Group guidance meaningfully following a softer-than-expected first half and continued weak demand in the North American DIY market.
Good morning. Thank you for joining the Sherwin-Williams Company's review of second-quarter 2024 results and our outlook for the third quarter and full year of 2024. With us on today's call are Heidi Petz, President and CEO; Al Mistysyn, Chief Financial Officer; Jane Cronin, Senior Vice President, Enterprise Finance; and Jim Jaye, Senior Vice President, Investor Relations and Communications.
This conference call is being webcast simultaneously in listen-only mode by Issuer Direct via the Internet at www.sherwin.com. An archived replay of this webcast will be available at www.sherwin.com, beginning approximately two hours after this conference call concludes.
This conference call will include certain forward-looking statements as defined under US federal securities laws with respect to sales, earnings and other matters. Any forward-looking statements speaks only as of the date on which such statement is made. And the company undertakes no obligation to update or
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