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THE SHERWIN-WILLIAMS COMPANY REPORTS 1992 EARNINGS RESULTS

 CLEVELAND, Jan. 21 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced today that, for the year ended Dec. 31, 1992, income per share before cumulative accounting changes increased 11.9 percent to $1.63 from $1.45 per share in 1991. The $1.63 per share reflected a decrease in 1992 income of $5,654,000 ($.06 per share) for the adoption of Statement of Financial Accounting Standards (SFAs) No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions" effective Jan. 1, 1992. Income before the cumulative accounting changes increased 12.8 percent to $144,636,000 and net sales increased 8.1 percent to $2,747,843,000 in 1992.
 As of Jan. 1, 1992, the company recognized a one-time charge for previously unaccounted for postretirement benefit costs of $99,828,000 ($1.12 per share). Most companies have accounted for postretirement benefit costs on a pay-as-you-go basis rather than setting aside reserves for future costs of health and life insurance benefits. The accounting change will not increase the cost of providing retirees with medical and life benefits, but it requires employers to account for the costs sooner and has the effect of reducing annual net operating income and earnings per share. The company also adopted SFAS No. 109 "Accounting for Income Taxes" effective Jan. 1, 1992 which resulted in a one-time benefit to consolidated income of $18,057,000 ($.20 per share) with no ongoing effect on annual net earnings. The changes have no effect on the cash flow of the company.
 The Paint Stores Segment reported a 12.4 percent sales increase to $1,681,600,000 with comparable store sales increasing 11.5 percent. Adjusting for the July 1991 realignment of the Chemical Coatings business, sales for the segment improved 10.8 percent with comparable store sales increasing 9.8 percent. Paint Stores Segment operating profit increased 11.1 percent for the year. After excluding the current year effect of SFAS No. 106 on income, Paint Stores' operating profit increased 16.8 percent. There was no significant effect on the operating profit comparison from the Chemical Coatings realignment.
 The Coatings Segment had a sales increase of 1.9 percent. Adjusting for the realignment of the Chemical Coatings business, sales for the segment improved 4.2 percent over 1991. Coatings Segment operating profits increased 24.3 percent to $174 million in 1992. Excluding the current year effect of SFAS No. 106 on income, this segment's operating profit increased 27.2 percent.
 For the fourth quarter, net income per share was $.26 compared to $.26 in 1991. SFAS No. 106 decreased 1992 fourth quarter net income by $.02 per share. Net sales in the quarter increased 9.8 percent to $607,940,000.
 Commenting on 1992's results, John G. Breen, chairman and chief executive officer, said, "This marks our fourteenth consecutive year of sales and profit improvements, concurrent with the gains in market share. The Paint Stores Segment continues to reach new sales and profit levels during an uncertain economy and in the face of constant pricing pressures. The Coatings Segment continues to contribute to our sales growth and substantially improved its earnings over the prior year with the ongoing improvement of acquired businesses, better capacity utilization, overall stable raw material costs and cost reductions associated with the Chemical Coatings realignment. We expect to continue strengthening our position in the marketplace and to again report improved results in 1993."
 The Sherwin-Williams Company and Subsidiaries
 Statements of Consolidated Income (Unaudited)
 Three months ended Dec. 31
 1992 1991
 Thousands of dollars, except per share data
 Net sales $607,940 $553,671
 Costs and expenses:
 Operating expenses 556,244 506,631
 Interest expense 1,800 2,685
 Interest and net investment
 income (1,777) (1,812)
 Other 15,039 11,052
 Total 571,306 518,556
 Income before income taxes and
 cumulative effects of changes
 in accounting methods 36,634 35,115
 Income taxes 13,188 12,466
 Income before cumulative effects
 of changes in accounting methods 23,446 22,649
 Cumulative effect of change in
 accounting method for income taxes --- ---
 Cumulative effect of change in
 accounting method for postretirement
 benefits other than pensions -- net
 of income taxes of $62,464 --- ---
 Net Income $23,446 $22,649
 Income per share:
 Before cumulative effects of
 changes in accounting methods $0.26 $0.26
 Cumulative effect of change in
 accounting method for income
 taxes --- ---
 Cumulative effect of change in
 accounting method for
 postretirement benefits other
 than pensions - net of taxes --- ---
 Net income $0.26 $0.26
 Average Shares Outstanding 89,055,414 88,360,423
 Year Ended December 31,
 1992 1991
 Thousands of dollars, except per share data
 Net sales $2,747,843 $2,541,446
 Costs and expenses:
 Operating expenses 2,504,090 2,326,157
 Interest expense 8,576 12,326
 Interest and net investment
 income (4,738) (5,114)
 Other 13,921 9,266
 Total 2,521,849 2,342,635
 Income before income taxes and
 cumulative effects of changes
 in accounting methods 225,994 198,811
 Income taxes 81,358 70,578
 Income before cumulative effects
 of changes in accounting methods 144,636 128,233
 Cumulative effect of change in
 accounting method for income
 taxes 18,057 ---
 Cumulative effect of change in
 accounting method for postretirement
 benefits other than pensions -- net
 of income taxes of $62,464 (99,828) ---
 Net Income $62,865 $128,233
 Income per share:
 Before cumulative effects of
 changes in accounting methods $1.63 $1.45
 Cumulative effect of change in
 accounting method for income
 taxes 0.20 ---
 Cumulative effect of change in
 accounting method for
 postretirement benefits other
 than pensions - net of taxes (1.12) ---
 Net income $0.71 $1.45
 Average Shares Outstanding 88,904,955 88,181,526
 1992
 Net income in the fourth quarter was reduced $1,455,000 (.02 per share) due to the effect of the adoption of SFAS No. 106. Fourth quarter net income was unaffected by year-end adjustments of inventory and prior quarters' LIFO expense of $17,974,000 ($.20 per share) which were offset by provisions for environmental protection and control of $6,048,000 ($.07 per share), provisions for disposition and termination of operations of $4,950,000 ($.06 per share) and other year-end adjustments of $6,639,000 ($.07 per share).
 The company adopted SFAS No. 106 "Employers Accounting for Postretirement Benefits Other Than Pensions" and SFAS No. 109 "Accounting for Income Taxes" during the fourth quarter of 1992, retroactive to Jan. 1, 1992. The cumulative effects of these changes in accounting methods resulted in a $81,771,000 ($.92 per share) reduction of 1992 first quarter net income.
 1991
 Adjustments in the fourth quarter increased net income by $1,364,000 ($.02 per share). The increase was due to year-end adjustments of inventory and prior quarters' LIFO expense of $16,489,000 ($.19 per share) primarily offset by provisions of $3,585,000 ($.04 per share) for the disposition and termination of certain operations, provisions for environmental protection and control of $6,942,000 ($.08 per share) and other year-end adjustments of $4,598,000 ($.05 per share).
 -0- 1/21/93
 /CONTACT: Conway G. Ivy, vice president, corporate planning and development, The Sherwin-Williams Company, 216-566-2102/
 (SHW)


CO: The Sherwin-Williams Company ST: Ohio IN: CST SU: ERN

KK -- CL011 -- 7517 01/21/93 14:47 EST
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Date:Jan 21, 1993
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