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The Sherwin-Williams Company Reports 2013 First Quarter Financial Results

  The Sherwin-Williams Company Reports 2013 First Quarter Financial Results

- Consolidated net sales increased 1.4% to a record $2.17 billion in the
quarter

- Net sales from stores open more than twelve calendar months increased 3.2%
in the quarter

- Diluted net income per common share increased 16.8% to a record $1.11 per
share in the quarter

- Anticipates 2Q13 sales increase 5% to 9% and EPS in the range of $2.50 to
$2.60 per share

- Reaffirming FY13 EPS guidance of $7.45 to $7.55 per share

PR Newswire

CLEVELAND, April 18, 2013

CLEVELAND, April 18, 2013 /PRNewswire/ -- The Sherwin-Williams Company (NYSE:
SHW) announced its financial results for the first quarter ended March31,
2013. Compared to the same period in 2012, consolidated net sales increased
$30.8 million, or 1.4%, to $2.17 billion in the quarter due primarily to
higher paint sales volume in our Paint Stores Group. Acquisitions increased
consolidated net sales 1.0%, which offset the impact of unfavorable currency
translation rate changes in the quarter.

Diluted net income per common share increased to $1.11 per share in the
quarter compared to $.95 per share in 2012 due primarily to improved operating
results of the Paint Stores and Global Finishes Groups. Unfavorable currency
translation rate changes decreased diluted net income per common share by $.02
per share in the quarter. Acquisitions had no significant effect on diluted
net income per common share in the quarter.

Net sales in the Paint Stores Group increased 4.0% to $1.17 billion in the
quarter due primarily to higher architectural paint sales volume across all
end market segments. Net sales from stores open for more than twelve calendar
months increased 3.2% in the quarter over last year's comparable period. Paint
Stores Group segment profit increased $17.0 million to $129.7 million in the
quarter from $112.7 million last year due primarily to higher paint sales
volume partially offset by increases in selling, general and administrative
expenses. Segment profit as a percent to net sales increased in the quarter to
11.1% from 10.0% last year.

Net sales of the Consumer Group decreased 3.7% to $308.6 million in the
quarter due primarily to the previously disclosed elimination of a portion of
a paint program with a large retail customer partially offset by acquisitions.
Acquisitions increased net sales 4.9% in the quarter. Segment profit decreased
to $54.0 million in the quarter from $55.3 million last year due primarily to
lower sales. As a percent to net external sales, segment profit increased in
the quarter to 17.5% from 17.3% last year due to improved operating
efficiencies. Acquisitions did not have a significant effect on segment profit
in the quarter.

The Global Finishes Group's net sales stated in U.S. dollars increased .8% to
$486.8 million in the quarter due primarily to selling price increases and
acquisitions partially offset by unfavorable currency translation rate
changes. Acquisitions increased net sales in U.S. dollars by 1.0%, which
offset the impact of unfavorable currency translation rate changes in the
quarter. Stated in U.S. dollars, segment profit increased in the quarter to
$33.9 million from $28.6 million last year due primarily to selling price
increases and improved operating efficiencies partially offset by unfavorable
foreign currency translation rate changes and acquisitions. Unfavorable
currency translation rate changes and acquisitions decreased segment profit
$1.8 million in the quarter. As a percent to net external sales, segment
profit was 7.0% in the quarter versus 5.9% last year.

The Latin America Coatings Group's net sales stated in U.S. dollars decreased
2.9% to $202.6 million in the quarter due primarily to unfavorable currency
translation rate changes partially offset by selling price increases.
Unfavorable currency translation rate changes decreased net sales by 6.6% in
the quarter. Stated in U.S. dollars, segment profit increased to $20.8 million
in the quarter from $19.9 million last year due primarily to good expense
control and selling price increases partially offset by unfavorable currency
translation rate changes. Unfavorable foreign currency translation rate
changes decreased segment profit $1.7 million in the quarter. As a percent to
net external sales, segment profit improved to 10.3% in the quarter versus
9.5% last year.

The Company acquired .5 million shares of its common stock through open market
purchases in the quarter. The Company had remaining authorization at March31,
2013 to purchase 15.95 million shares.

Commenting on the financial results, Christopher M. Connor, Chairman and Chief
Executive Officer, said, "We are pleased to report record sales and earnings
per share on the continued positive sales volume and strong operating results
of our Paint Stores Group. The Paint Stores Group architectural volume growth
across all end market segments was impressive considering the difficult
comparisons from a year ago. Our Consumer Group improved their operating
margins through improved operating efficiencies. Our Global Finishes and Latin
America Coatings Groups are managing to improve their operating margins
through selling price increases and good cost control despite the unfavorable
effects of currency translation rate changes.

"We continued to invest in our business by opening nine net new locations in
the Paint Stores Group. For the year, we expect our Paint Stores Group to open
70 to 80 new stores. Our working capital ratio (accounts receivable plus
inventories less accounts payable to sales) at March 31, 2013 was 11.7%
compared to 12.7% last year. During the quarter, we continued to buy shares of
our stock and we increased the dividend rate to $.50 from $.39 last year. Our
balance sheet is positioned well for the anticipated closing of the Comex
acquisition and other investments in our business.

"For the second quarter, we anticipate our consolidated net sales will
increase five to nine percent compared to last year's second quarter. At that
anticipated sales level, we estimate diluted net income per common share in
the second quarter to be in the range of $2.50 to $2.60 per share compared to
$2.17 per share earned in the second quarter of 2012. For the full year 2013,
we expect consolidated net sales to increase above 2012 levels by a mid single
digit percentage. With annual sales at that level, we are reaffirming our
guidance that diluted net income per common share for 2013 is expected to be
in the range of $7.45 to $7.55 per share compared to $6.02 per share earned in
2012."

The Company will conduct a conference call to discuss its financial results
for the first quarter, and its outlook for the second quarter and full year
2013, at 11:00 a.m. ET on Thursday, April18, 2013. The conference call will
be webcast simultaneously in the listen only mode by Vcall. To listen to the
webcast on the Sherwin-Williams website, www.sherwin.com,click on About Us,
choose Investor Relations, then select Press Releases and click on the webcast
icon following the reference to the April18th release. The webcast will also
be available at Vcall's Investor Calendar website,
www.investorcalendar.com.An archived replay of the live webcast will be
available at www.sherwin.com beginning approximately two hours after the call
ends and will be available until May 9, 2013 at 5:00 p.m. ET.

Founded in 1866, The Sherwin-Williams Company is a global leader in the
manufacture, development, distribution, and sale of coatings and related
products to professional, industrial, commercial, and retail customers. The
company manufactures products under well-known brands such as
Sherwin-Williams^®, Dutch Boy^®, Krylon^®, Minwax^®, Thompson's^® Water
Seal^®, and many more. With global headquarters in Cleveland, Ohio,
Sherwin-Williams^® branded products are sold exclusively through a chain of
more than 4,100 company-operated stores and facilities, while the company's
other brands are sold through leading mass merchandisers, home centers,
independent paint dealers, hardware stores, automotive retailers, and
industrial distributors. The Sherwin-Williams Global Finishes Group
distributes a wide range of products in more than 115 countries around the
world. For more information, visit www.sherwin.com.

___________________________________________________________________________________

This press release contains certain "forward-looking statements", as defined
under U.S. federal securities laws, with respect to sales, earnings and other
matters. These forward-looking statements are based upon management's current
expectations, estimates, assumptions and beliefs concerning future events and
conditions. Readers are cautioned not to place undue reliance on any
forward-looking statements. Forward-looking statements are necessarily subject
to risks, uncertainties and other factors, many of which are outside the
control of the Company, that could cause actual results to differ materially
from such statements and from the Company's historical results and experience.
These risks, uncertainties and other factors include such things as: general
business conditions, strengths of retail and manufacturing economies and the
growth in the coatings industry; changes in the Company's relationships with
customers and suppliers; changes in raw material availability and pricing;
unusual weather conditions; and other risks, uncertainties and factors
described from time to time in the Company's reports filed with the Securities
and Exchange Commission. Since it is not possible to predict or identify all
of the risks, uncertainties and other factors that may affect future results,
the above list should not be considered a complete list. 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
statement, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Bob Wells
Senior Vice President, Corporate Communications and Public Affairs
Sherwin-Williams
Direct: 216.566.2244
rjwells@sherwin.com

Media Contact:
Mike Conway
Director, Corporate Communications
Sherwin-Williams
Direct: 216.515.4393
Pager: 216.422.3751
mike.conway@sherwin.com



The Sherwin-Williams Company and Subsidiaries
Statements of Consolidated Income (Unaudited)
                                                Three Months Ended March 31,
Thousands of dollars, except per share          2013             2012
data
Net sales                                    $  2,167,168      $ 2,136,344
Cost of goods sold                              1,204,317        1,226,505
Gross profit                                    962,851          909,839
Percent to net sales                            44.4%            42.6%
Selling, general and administrative             778,679          757,679
expenses
Percent to net sales                            35.9%            35.5%
Other general expense - net                     3,947            5,037
Interest expense                                15,311           10,337
Interest and net investment income              (749)            (542)
Other income - net                              (2,721)          (4,987)
Income before income taxes                      168,384          142,315
Income taxes                                    52,199           42,099
Net income                                   $  116,185        $ 100,216
Net income per common share:
Basic                                        $  1.13           $ .97
Diluted                                      $  1.11           $ .95
Average shares outstanding - basic              101,961,059      102,070,349
Average shares and equivalents outstanding -    104,256,263      104,458,088
diluted

Additional information regarding the Company's financial condition, operating
segment results and other information can be found on the Sherwin-Williams
website, www.sherwin.com, by clicking on About Us, choosing Investor
Relations, then selecting Press Releases and clicking on the reference to the
April 18^th release.

SOURCE The Sherwin-Williams Company

Website: http://www.sherwin.com
 
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