CLEVELAND - The Sherwin-Williams Co., Cleveland, announced its financial results for the first quarter ended March 31, 2013. Compared to the same period in 2012, consolidated net sales increased $30.8 million, or 1.4 percent, to $2.17 billion in the quarter due primarily to higher paint sales volume in Paint Stores Group. Acquisitions increased consolidated net sales 1.0 percent, 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 percent 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 12 calendar months increased 3.2 percent 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. Segment profit as a percent to net sales increased in the quarter to 11.1 percent from 10 percent last year.

Net sales of the Consumer Group decreased 3.7 percent 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. Acquisitions increased net sales 4.9 percent 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 percent from 17.3 percent last year. 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 percent to $486.8 million in the quarter. Acquisitions increased net sales in U.S. dollars by 1 percent, 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. 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 percent in the quarter versus 5.9 percent last year.

The Latin America Coatings Group's net sales stated in U.S. dollars decreased 2.9 percent to $202.6 million in the quarter. Unfavorable currency translation rate changes decreased net sales by 6.6 percent in the quarter. Stated in U.S. dollars, segment profit increased to $20.8 million in the quarter from $19.9 million last year. 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 percent in the quarter versus 9.5 percent last year.

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.

"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."