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Sherwin-Williams Co SHW

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Sherwin-Williams Sees Solid Demand Despite Inflation and Supply Chain Constraints

Analyst Note

| Brian Bernard, CFA, CPA |

Narrow-moat Sherwin-Williams reported solid second-quarter results that were in line with our expectations. Revenue increased 16.9% year over year to $5.4 billion, as demand in almost all of its end markets remained strong. That said, Sherwin faced increased inflationary pressure as raw material costs rose higher than management had initially anticipated. Supply chain disruptions and constraints also affected prices in the quarter. Sherwin was able to pass most of the cost increases to the consumer through pricing action and said it is prepared to do more in the second half of the year. Management cautioned that it believes the third quarter of 2021 will have the highest year-over-year inflation increase.

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Company Profile

Business Description

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has approximately 4,800 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.

Contact
101 West Prospect Avenue
Cleveland, OH, 44115-1075
T +1 216 566-2000
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 61,031

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