Oct. 20, 2009 (PR Newswire) --

CLEVELAND, Oct. 20 /PRNewswire-FirstCall/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the third quarter and nine months ended September 30, 2009. Compared to the same periods in 2008, consolidated net sales decreased $271.7 million, or 12.0%, to $1.997 billion in the quarter and decreased $784.5 million, or 12.5%, to $5.495 billion in nine months due primarily to weak paint sales volume. Unfavorable currency translation rate changes decreased consolidated net sales 1.6% in the quarter and 2.3% in nine months while acquisitions added less than 1.0% to consolidated net sales in the quarter and nine months.

Diluted net income per common share increased in the quarter to $1.51 per share from $1.50 per share in 2008 and decreased in nine months to $3.17 per share from $3.57 per share last year, including asset impairment charges of approximately $.12 per share recorded in the second quarter last year. Third quarter gross profit margins recovered to a more normal level versus last year's third quarter depressed gross profit margins caused by rapidly escalating raw material costs. Acquisitions and currency translation rate changes, combined, reduced diluted net income per common share by approximately $.01 per share in the quarter and by $.06 per share in nine months. A lower tax rate and purchases of treasury stock favorably impacted diluted net income per common share approximately $.06 per share in the quarter and $.13 per share in nine months.

Net sales in the Paint Stores Group decreased 13.5% to $1.221 billion in the quarter and 13.4% to $3.289 billion in nine months due primarily to continuing weak residential and commercial architectural paint sales volumes and lower sales in industrial coatings and non-paint categories partially offset by improving DIY customer sales. Net sales from stores open for more than twelve calendar months decreased 13.5% in the quarter and 13.3% in nine months versus last year's comparable periods. Paint Stores Group segment profit decreased to $230.2 million in the quarter from $241.0 million last year and to $480.3 million in nine months from $534.7 million last year due primarily to lower sales volume partially offset by higher gross profit margins and reductions in selling, general and administrative expenses. Last year, second quarter impairment charges of $20.4 million were recorded. Segment profit as a percent to net sales increased in the quarter to 18.9% from 17.1% last year and increased in nine months to 14.6% from 14.1% in nine months of 2008.

Net sales of the Consumer Group decreased 7.1% to $330.5 million in the quarter and 4.0% to $985.1 million in nine months due primarily to lower volume sales to most of the Group's retail customers. Segment profit increased to $56.5 million in the quarter from $26.3 million last year and to $152.8 million from $127.9 million last year for nine months. Segment profit in the quarter increased as a percent to net external sales to 17.1% from 7.4% last year due primarily to the return to more normal level of gross profit margins in 2009 versus last year's depressed gross margins in the third quarter caused by rapidly escalating raw material costs. Good cost control and favorable freight and other distribution costs that were partially offset by reduced fixed cost absorption from lower manufacturing and distribution volume contributed to the third quarter segment profit improvement and to an increase in nine months segment profit as a percent to net external sales to 15.5% from 12.5% last year. 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 11.3% to $444.1 million in the quarter and 16.2% to $1.216 billion in nine 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 nine months, unfavorable currency translation rate changes decreased net sales of the Global Finishes Group in U.S. dollars by 6.4% and 8.4%, respectively, and acquisitions increased net sales by 1.4% and 1.8%, respectively. Stated in U.S. dollars, Global Finishes Group segment profit in the quarter decreased to $29.7 million from $45.3 million last year and decreased in nine months to $66.1 million from $136.4 million last year. Unfavorable currency translation rates and acquisitions had a negative effect of $1.7 million on segment profit in the quarter and $10.0 million in nine months. As a percent to net external sales, segment profit was 6.7% in the quarter versus 9.1% last year and 5.4% in nine months compared to 9.4% in 2008.