Sherwin-Williams Co SHW
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/18/2013

Operator: Good morning. Thank you for joining the Sherwin-Williams Company's Review of the Second Quarter 2013 Financial Results and Expectations for the Third Quarter and Full Year. With us on today's call are Chris Connor, Chairman and CEO; Sean Hennessy, Senior Vice President, Finance and CFO; Al Mistysyn, Vice President, Corporate Controller; and Bob Wells, Senior Vice President, Corporate Communications.

This conference call is being webcast simultaneously in listen-only mode by VCall via the Internet at An archived replay of this webcast will be available at beginning approximately two hours after this conference call concludes and will be available until Wednesday , August 8, 2013 at 5.00 pm Eastern Time.

This conference call will include certain forward-looking statements as defined under U.S. federal securities laws with respect to sales, earnings, and other matters. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. A full declaration regarding forward-looking statements is provided in the Company's earnings release transmitted earlier this morning.

I will now turn the call over to Chris Connor for some opening comments.

Christopher M. Connor - Chairman and CEO: Thanks, Jessi. Good morning, everybody. Thanks for joining us today. Last night, the federal competition commission in Mexico voted 3 to 2 with Board approval of our acquisition of Comex announced on November 12, 2012. At this time, we are still reviewing the rational for the commission's decision and will respond if there is specific concern in the days ahead. We have several paths forward in our efforts to secure approval for this transaction including an internal appeal to the competition commission and we are aggressively pursuing these options as we speak.

Our legal representatives in Mexico are attempting to meet with key commissioners yet today. If you may recall that on June 24, we announced an extension of the original purchase agreement out to the end of August. Last evening and again this morning, I spoke with Marcos Achar, CEO of Comex and he confirmed they are equal resolved to pursue all avenues available to secure confirmation of this transaction.

We are clearly disappointed by this decision, but remain resolute in our determination to address their objectives and proceed with the transaction. Obviously we'll be happy to answer your questions on this topic to the best of our ability after the review of our second quarter results.

Let me turn the call over now to Bob to walk you through our results for the second quarter and then I'll be back with some concluding comments. Bob?

Robert J. Wells - SVP, Corporate Communications and Public Affairs: Thanks Chris. Summarizing overall Company performance for second quarter 2013 versus second quarter 2012. Consolidated net sales increased $140.9 million or 5.5% to $2.71 billion due primarily to higher paint sales volumes in our Paint Stores group. Acquisitions added 0.7% to net sales in the quarter and unfavorable currency translation rate changes decreased consolidated net sales by 0.3%.

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