CLEVELAND, Ohio — While the Sherwin-Williams Co. saw an increase in net sales for both the fourth quarter and the fiscal year, ended Dec. 31, 2021, the company’s net income took a hit, dipping more than 25% for the quarter compared with the same period last year.
Consolidated net sales increased 8.6% for the year to a record $19.94 billion, while net sales for the fourth quarter rose to $4.76 billion, up 6.1% from $4.49 billion in the 2020 fourth quarter.
The company noted that raw material availability issues negatively impacted full year sales by “an estimated mid-single digit percentage.”
Net income declined, dropping from $2.03 billion for the 2020 fiscal year to $1.86 billion for the 2021 period, an 8.2% decline. For the quarter, net income dropped 25.3%, from $407 million in the 2020 period to $304 million for Q4 2021.
“Our full year and fourth quarter were marked by industry-wide supply chain disruptions, unprecedented cost inflation and ongoing challenges related to the pandemic,” said Chairman, President and CEO John G. Morikis. “The 61,000 dedicated employees of Sherwin-Williams refused to use these challenges as an excuse, but rather as an opportunity to get even closer to our customers. … We delivered full year sales growth of 8.6%, driven by 6% U.S. and Canada same store sales growth and double-digit growth in all industrial end markets.”
Morikis added that the company expects the pressures from rising business and commodity costs to moderate over time. He said the company will continue to invest in long-term growth initiatives, including opening 79 paint stores in the U.S. and Canada and hiring 1,400 management trainees.
“From a segment perspective, The Americas Group full year sales increased in all professional customer segments, including double digit percentage growth in residential repaint for the 6th consecutive year,” said Morikis. “Our Consumer Brands Group faced challenging full year comparisons but continued to focus on supporting key retail partners and growing our Pros Who Paint initiative. In the Performance Coatings Group, all businesses and all regions delivered double-digit percentage full year growth.”
In its 2022 guidance, the company said it expects net sales to increase in the low to mid-single digit percentages for the first quarter of 2022 and up high-single to low-double digit percentages for the full year. Diluted earnings per share is expected to range from $8.40 to $8.80 for the full year.