Summary
The Sherwin-Williams Company's 2009 10-K report highlights its operations across three primary segments: Paint Stores Group, Consumer Group, and Global Finishes Group. Despite facing a challenging economic environment characterized by the global financial downturn, the company continued to operate and expand its store and branch network. A key focus for the company is managing risks associated with economic conditions, raw material costs, and intense competition. The company also detailed its commitment to environmental compliance and ongoing litigation, notably the lead pigment and lead-based paint cases, which represent a significant area of uncertainty. Financially, the company reported net sales of $7,094 million in 2009, a decrease from prior years, with net income of $436 million. The report also notes the company's active share repurchase program. Investors should pay close attention to the company's strategies for navigating economic headwinds, managing its diverse product lines, and addressing potential liabilities from litigation and environmental matters.
Financial Highlights
54 data points| Revenue | $7.09B |
| Cost of Revenue | $3.83B |
| Gross Profit | $3.26B |
| R&D Expenses | $40.42M |
| SG&A Expenses | $2.53B |
| Interest Expense | $40.03M |
| Net Income | $435.85M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 340.54M |
| Shares Outstanding (Diluted) | 343.37M |
Key Highlights
- 1Sherwin-Williams operates through three distinct segments: Paint Stores Group, Consumer Group, and Global Finishes Group, serving diverse customer bases across North and South America, Europe, and Asia.
- 2The company reported net sales of $7.094 billion and net income of $436 million for the fiscal year ended December 31, 2009.
- 3Despite economic challenges, the company continued to expand its retail footprint, with the Paint Stores Group opening 8 net new stores in 2009.
- 4Key risks identified include adverse general business and economic conditions, increased raw material and energy costs, intense competition, and currency exchange rate fluctuations.
- 5The company is actively engaged in managing potential liabilities from litigation, particularly concerning historical lead pigment and lead-based paint sales, and environmental remediation activities.
- 6Sherwin-Williams maintained a share repurchase program, buying back over 4.1 million shares in the fourth quarter of 2009.
- 7The report emphasizes the seasonality of the business, with peak sales traditionally occurring in the second and third quarters.