Summary
This 10-K filing for The Sherwin-Williams Company for the fiscal year ended December 31, 2011, highlights a company operating in the paint and coatings industry with a diversified business model across four reportable segments: Paint Stores Group, Consumer Group, Global Finishes Group, and Latin America Coatings Group. The company emphasizes its strong brand recognition and extensive distribution network as key competitive advantages. Despite facing a challenging economic environment, Sherwin-Williams demonstrated resilience, indicated by steady net sales growth and a generally stable financial position. The company's strategy includes organic growth through store expansion and strategic acquisitions, alongside a commitment to product innovation and operational efficiency.
Financial Highlights
54 data points| Revenue | $8.77B |
| Cost of Revenue | $5.02B |
| Gross Profit | $3.74B |
| R&D Expenses | $41.72M |
| SG&A Expenses | $2.96B |
| Operating Income | $985.00M |
| Interest Expense | $42.50M |
| Net Income | $441.86M |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.38 |
| Shares Outstanding (Basic) | 310.41M |
| Shares Outstanding (Diluted) | 317.02M |
Key Highlights
- 1Sherwin-Williams operates through four distinct reportable segments: Paint Stores Group, Consumer Group, Global Finishes Group, and Latin America Coatings Group, demonstrating a diversified operational structure.
- 2The company's primary revenue driver remains its extensive network of company-operated specialty paint stores, which continue to expand, with a net increase of 60 stores in 2011.
- 3Sherwin-Williams is actively engaged in global expansion, with significant operations in North and South America, Europe, and Asia, and noted a growing contribution from international sales.
- 4The company acknowledges the impact of raw material cost volatility and global economic conditions as significant risk factors, yet maintains a strategy to offset these by increasing prices and managing costs.
- 5Sherwin-Williams has a robust portfolio of well-recognized brands and trade names, contributing significantly to its market position across various customer segments.
- 6The company actively repurchases its own shares, with 460,000 shares repurchased under its share repurchase program in the fourth quarter of 2011, indicating a commitment to shareholder returns.
- 7A significant portion of the filing addresses various legal proceedings and environmental liabilities, particularly concerning lead pigment and lead-based paint litigation, which represent ongoing uncertainties and potential financial risks.