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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (895)	10/19/2001 1:28:58 PM
From: LTK007	Respond to of 99280

one of stocks i look at to attempt to read where we are going in the longer view--<<NEW YORK, Oct 18 (Reuters) - Sherwin-Williams Co. (NYSE:SHW - news), the largest U.S. paint maker, said on Thursday its third-quarter earnings fell 15 percent, due to sluggish paint sales in its stores and at other retailers, and it sees full-year earnings at the lower end of its previous guidance. The Cleveland-based company reported earnings of $90.3 million, or 58 cents per share, compared with $106.7 million, or 66 cents per share, a year earlier. Analysts' estimates ranged from 55 cents to 65 cents, with a mean of 60 cents, according to research firm Thomson Financial/First Call. Third-quarter revenues fell 3.2 percent to $1.37 billion from $1.41 billion. The company said it expects fourth-quarter sales may be down as much as 3 percent and full-year sales down 3 percent as consumers and businesses defer spending following the Sept. 11th attacks and in the uncertain worldwide economic conditions. The company's sales are often driven by home-improvement and remodeling, said Joseph Sroka, an analyst at Merrill Lynch, but the question is whether consumers are confident enough to proceed with those projects. ``The money is certainly available,'' Sroka said. ``Are consumers going to commit to doing those home improvement projects? That more or less spells out how sales will look.'' The company said it sees full-year earnings per share of $1.65 to $1.75, at the lower end of its previous view and down from a year ago. Analysts' estimates range from $1.65 to $1.76, with a mean of $1.71, according to First Call. Shares of Sherwin-Williams were down 30 cents to $24 on the New York Stock Exchange on Thursday afternoon. Sherwin-Williams said third-quarter net sales at its paint stores fell 0.6 percent. Same-store sales, or sales at stores open at least one year, fell 1.8 percent in the third quarter. ``I think Sherwin-Williams has done a commendable job in a difficult environment,'' said Barbara Allen. ``The paint store segment continues to do well relative to the rest of the world.'' Net sales in its consumer segment -- paints the company makes for sale by other retailers -- fell 6.1 percent. Excluding the previously announced discontinued paint programs at certain customers, net sales in the company's consumer segment would have been essentially flat with last year. The automotive finishes segment's net sales fell 9.5 percent and net sales in the international coatings segment were down 12 percent, the company said. Third-quarter sales were hurt by the Sept. 11 attacks, which caused a temporary change in customers' buying habits, Sherwin-Williams said. They were also hurt by poor economic conditions domestically and in South America, continuing weakness in foreign currency exchange rates and previously announced discontinued paint programs at certain customers. Sherwin-Williams stock has fallen 7.6 percent since the beginning of the year, outperforming the Standard & Poor's 500 (^SPX - news), which is down 18 percent.