(Source: PRNewswire)CLEVELAND, July 21 /PRNewswire-FirstCall/ -- The Sherwin- Williams Company (NYSE: SHW) announced its financial results for the second quarter and six months ended June 30, 2009. Compared to the same periods in 2008, consolidated net sales decreased $281.7 million, or 12.6%, to $1.95 billion in the quarter and decreased $512.7 million, or 12.8%, to $3.50 billion in six months due primarily to weak paint sales volume. Unfavorable currency translation rate changes decreased consolidated net sales 2.2% in the quarter and 2.6% in six months while acquisitions added less than 1.0% to consolidated net sales in the quarter and six months.

Diluted net income per common share in the quarter decreased to $1.35 per share from $1.45 per share in 2008 and decreased in six months to $1.66 per share from $2.07 per share last year. Last year, asset impairment charges of approximately $.12 per share were recorded in the second quarter. In the quarter, currency translation rate changes reduced diluted net income per common share by approximately $.03 per share and acquisitions had no significant impact. In six months, acquisitions and currency translation rate changes, combined, reduced diluted net income per common share by approximately $.05 per share. Diluted net income per common share decreased in the quarter and six months due primarily to lower sales volume, reduced fixed cost absorption associated with lower manufacturing volume and incremental site exit costs partially offset by favorable product sales mix, selling, general and administrative expense control and a lower effective tax rate.

Net sales in the Paint Stores Group decreased 13.7% to $1.17 billion in the quarter and 13.3% to $2.07 billion in six months due primarily to weak architectural paint sales volumes in the domestic new residential, residential repaint, commercial and DIY markets and significantly lower sales in industrial coatings and non-paint categories. Net sales from stores open for more than twelve calendar months decreased 13.5% in the quarter and 13.1% in six months over last year's comparable periods. Paint Stores Group segment profit decreased to $193.5 million in the quarter from $210.4 million last year and to $250.1 million in six months from $293.7 million last year due primarily to lower sales volume partially offset by the effect of price increases over the last eighteen months, reductions in selling, general and administrative expenses and second quarter 2008 impairment charges of $20.4 million. Segment profit as a percent to net sales increased in the quarter to 16.5% from 15.5% last year and decreased in six months to 12.1% from 12.3% in six months of 2008.

Net sales of the Consumer Group decreased 4.5% to $366.5 million in the quarter and 2.4% to $654.6 million in six months due primarily to lower volume sales to most of the Group's retail customers partially offset by additional sales related to new products. Segment profit increased to $66.1 million in the quarter from $58.8 million last year and increased as a percent to net external sales to 18.0% from 15.3% last year due primarily to a favorable sales mix, favorable freight and other distribution costs and a second quarter 2008 impairment charge of $2.7 million. Consumer Group segment profit in six months decreased to $96.3 million from $101.6 million and declined as a percent to net external sales to 14.7% from 15.1% last year due primarily to reduced fixed cost absorption from lower manufacturing and distribution volume and incremental site exit costs partially offset by good expense control. Two acquisitions in the Consumer Group had no significant impact on net sales or segment profit.

The Global Finishes Group's net sales stated in U.S. dollars decreased 16.2% to $409.7 million in the quarter and 18.8% to $772.2 million in six months due primarily to lower paint sales volume and unfavorable currency translation rate changes that were partially offset by acquisitions and selling price increases. In the quarter and six months, unfavorable currency translation rate changes decreased net sales of the Global Finishes Group in U.S. dollars by 8.5% and 9.5%, respectively, and acquisitions increased net sales by 1.6% and 2.0%, respectively. Stated in U.S. dollars, Global Finishes Group segment profit in the quarter decreased to $31.2 million from $48.0 million and decreased in six months to $36.5 million from $91.1 million last year. Unfavorable currency translation rates and acquisitions had a negative effect of $5.9 million on segment profit in the quarter and $8.4 million in six months. Segment profit declined in the quarter and six months primarily due to reductions in sales and unfavorable operating efficiencies related to lower manufacturing volume partially offset by good expense control.