UPDATE 2-Sherwin-Williams Q2 beats, sees weak Q3 earnings

* Q2 adj EPS $1.72 vs est $1.64

* Q2 net sales up 10 pct, slightly above Street

* Sees Q3 EPS $1.55-$1.70

* Says acquisitions hurt Q2, offset forex gains

* Implemented price increases to offset higher input costs
(Adds details, background, share movement)

July 22 (BestGrowthStock) – Sherwin-Williams Co (SHW.N: ) reported
second-quarter results that outpaced market expectations,
boosted by robust sales growth across all segments, but the
maker of Dutch Boy, Krylon and Duron paints forecast lackluster
earnings for the third quarter.

“We remain cautiously optimistic about the stability of
end-market demand,” Chief Executive Christopher Connor said in
a statement. The largest U.S. paint maker expects to report
third-quarter earnings of $1.55 to $1.70 a share, and expects
net sales to grow in the mid-to-high single digits range.

Analysts on average were expecting the company to report
earnings of $1.75 a share, on revenue of $2.15 billion,
according to Thomson Reuters I/B/E/S.

The company, which caters to do-it-yourself customers,
contractors, and multi-national industrial manufacturers, said
that recent acquisitions hurt the quarter and offset forex
gains.

Sherwin-Williams bought Sweden-based wood coatings maker
Becker Acroma Industrial Wood Coatings for an undisclosed sum
in May. [ID:nSGE64N1OH]

“Our operating segments continue to control costs and have
implemented price increases to offset the current raw material
increases,” CEO Connor said.

STRONG DEMAND BOOSTS Q2

For the second quarter, the company’s paint stores group
saw net sales increasing 6 percent, while they rose 12 percent
at the consumer group unit and rose the highest by 19 percent
at its global finishes group during the quarter.

Sherwin-Williams reported second-quarter net income of
$181.7 million, or $1.64 a share, up from $158 million, or
$1.35 a share, a year earlier.

Excluding costs related to repurchase of debt,
Sherwin-Williams earned $1.72 a share in the quarter.

Net sales at the company, which is the world’s No. 2 paint
maker behind Dutch company Akzo Nobel (AKZO.AS: ), rose 10
percent to $2.14 billion. [ID:nASA00JPI]

Analysts on average expected earnings of $1.64 a share, on
revenue of $2.08 billion.

Shares of the Cleveland, Ohio-based company were down 1
percent at $68.62 in early trade Thursday on the New York Stock
Exchange.

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(Reporting by Shradhha Sharma in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 2-Sherwin-Williams Q2 beats, sees weak Q3 earnings