Sherwin-Williams also said it plans to explore the sale of its Cleaning Solutions and Graphic Arts business units.
Chairman and CEO Christopher M. Connor said the charge for asset impairment for Thompson’s and Pratt & Lambert “does not change Sherwin-Williams’ commitment to these core businesses and our expectations for future improvement.” He said the sale of the Cleaning Solutions and Graphic Arts businesses will be explored “to better focus our resources on our remaining businesses.”
Sherwin-Williams said the charge for impairment of long-lived assets is the result of accounting standards that reduce the carrying value of certain assets to a fair value based on current management projections of future cash flows. The company said cash flow will be unaffected by the accounting charge and that earnings per share in 2001 are expected to be favorably impacted by approximately 5¢ per share.