The Sherwin-Williams Co. reaffirmed its financial guidance for the first quarter of 2020 and continues to project net sales growth of 2% to 5% compared to the first quarter of 2019, with The Americas Group expected to be above the high end of this range.
Although the company has experienced headwinds related to the coronavirus pandemic (COVID-19), primarily outside the U.S., a news release states, “we are reaffirming our first quarter guidance amidst this continuously evolving situation. The company is working diligently and proactively across all its businesses to ensure it is taking every reasonable preventative measure to protect its employees and customers, and to maintain business continuity.”
Sherwin-Williams has also reached a deal to pay $49.4M for nearly 7 acres of property downtown to be used for the company’s new Cleveland headquarters, according to a story on Cleveland.com.
With regard to the company’s immediate financial future, Sherwin-Williams Chairman and CEO John G. Morikis said in a statement: “As we continue to prioritize the health and well-being of our employees and their families, I want to thank our entire team for their dedication and commitment in continuing to serve our customers. At the current time, our production operations in Asia are returning to pre-crisis levels with sites operating under the guidance of local and state governments.
"While there has been a dramatic surge in cases across Europe and an increase in cases in North America, the company has experienced minimal disruption to its supply chain and facility operations to date. At this time, the vast majority of the company’s North American paint stores continue to operate and provide customers with multiple options for ordering and receiving product, including through our existing and extensive delivery system and store pick-up.
“We will continue to respond to the many small business owners and independent painting contractors that are relying on us for products and service during this critical time to support their families along with larger customers involved in mission critical applications such as food and beverage packaging, health care equipment and facilities, military equipment and energy infrastructure. Although near-term market conditions are likely to remain unpredictable, we believe our underlying long-term demand fundamentals remain intact, and we remain focused on delivering value added solutions to ensure our customers’ continued success.”
Sherwin-Williams is scheduled to release first quarter 2020 results on April 29.