Sherwin-Williams (SHW) – Get the Sherwin-Williams Company Report warned Monday that its third quarter results would be affected by lingering supply constraints and inflation.
The Cleveland, Ohio-based paint and coatings maker now expects third-quarter sales to be flat or “down” from a year ago. He offered a forecast for the third quarter of $ 1.80 to $ 1.90 per share.
In addition, the company lowered its full-year sales forecast to be up “by a high single-digit percentage from the year 2020.” He said he now sees diluted net income for fiscal 2021 of $ 7.21 to $ 7.41 per share.
“The persistent and industry-wide constraints on raw material availability and price inflation that we previously reported have worsened, and we do not expect supply to improve or decline. lower commodity prices in the fourth quarter as expected, âsaid John G. Morikis, president. and CEO in a statement. “Our suppliers are now reporting that the impacts of Hurricane Ida are more severe and will last longer than originally thought,” he added.
âIn addition to significant supply issues, commodity prices remain very high, and we are increasing our outlook for commodity inflation for the entire year to be a high percentage from last year. . We continue to fight against these high costs with share prices in all our businesses, âhe said in the statement.
While the Federal Reserve has insisted that the inflationary pressures resulting from its easy monetary policies are transient, concerns are growing on Wall Street that inflation could become part of many people’s economic assumptions, leading to an inflationary spiral. self-fulfilling.
Stocks fell sharply on Wall Street on Monday as interest rates rose amid inflation fears.
Sherwin-Williams shares fell $ 9.72, or 3.5%, to $ 269.90 after-market.