Summary
The Sherwin-Williams Company's 2008 Form 10-K reveals a company navigating a challenging economic environment. Despite a slight decrease in net sales from the previous year to $7.98 billion, the company maintained profitability with a net income of $477 million. This resilience is attributed to its diversified business segments: the extensive Paint Stores Group, the Consumer Group, and the Global Finishes Group, which collectively serve a broad range of professional, industrial, commercial, and retail customers. Key risks highlighted include the ongoing negative global economic and financial conditions, which impact demand for coatings and increase credit risk. Additionally, the company faces risks from fluctuations in raw material and energy prices, increased competition, and potential liabilities related to environmental matters and litigation, particularly concerning historical lead pigment and lead-based paint sales. Despite these challenges, Sherwin-Williams demonstrates a commitment to its growth strategy, including acquisitions and international expansion, while actively managing its financial resources and pursuing cost-saving initiatives.
Financial Highlights
51 data points| Revenue | $7.98B |
| Cost of Revenue | $4.48B |
| Gross Profit | $3.50B |
| R&D Expenses | $37.47M |
| SG&A Expenses | $2.64B |
| Interest Expense | $31.97M |
| Net Income | $476.88M |
| EPS (Basic) | $1.35 |
| EPS (Diluted) | $1.33 |
| Shares Outstanding (Basic) | 350.51M |
| Shares Outstanding (Diluted) | 354.53M |
Key Highlights
- 1Net sales for fiscal year 2008 were $7.98 billion, a slight decrease from $8.01 billion in 2007.
- 2Net income for 2008 was $477 million, down from $616 million in 2007.
- 3The company operates through three reportable segments: Paint Stores Group, Consumer Group, and Global Finishes Group.
- 4Significant risk factors include adverse global economic conditions, fluctuations in raw material costs, increased competition, and potential litigation expenses.
- 5Sherwin-Williams has an ongoing share repurchase program, with approximately 19.75 million shares remaining authorized for repurchase as of December 31, 2008.
- 6The company's operations are subject to environmental regulations, with potential liabilities for past and current activities being a noted concern.