Sherwin-Williams forecasts annual profit below estimates on soft demand
30/01/2025 13:03
Jan 30 (Reuters) - Paint maker Sherwin-Williams SHW.N
on Thursday forecast current-year adjusted profit below
analysts' expectations, hurt by continued demand choppiness.
"We expect demand softness to persist in several end markets
well into the second half of the year, if not into 2026," said
CEO Heidi Petz.
The company's shares were down 1.8% in premarket trading
Factory activity in the U.S. ended 2024 on a soft note as
expectations for the new year soured amid growing trade risks
from a second Donald Trump presidency and China's fragile
economic recovery.
The chemical industry has also been struggling with sluggish
demand recovery, resulting in lower prices, particularly in
Europe due to a challenging regulatory landscape which has
caused firms to reassess their strategies.
However, the Ohio-based company posted an adjusted profit of
$2.09 per share for the fourth quarter ended Dec. 31, beating
estimates of $2.06 per share, according to data compiled by
LSEG, as it benefited from higher sales at its paint stores
unit.
Net sales at paint stores, the company's biggest segment,
rose 3.4% to $3.04 billion during the reported period from a
year ago.
The company expects full-year adjusted profit in the range
of $11.65 per share to $12.05 per share, far below Wall Street
expectations of $12.60 per share.
(Reporting by Pooja Menon in Bengaluru; Editing by Shailesh
Kuber)
((Pooja.Menon@thomsonreuters.com;))