SHW - Earnings call transcript Q4 2018 | The Sherwin-Williams Company

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Operator

Good morning. Thank you for joining The Sherwin-Williams Company's review of Fourth Quarter and Full Year 2018 Results and the outlook for the Full Fiscal Year of 2019. With us on today's call are John Morikis, President and CEO; Al Mistysyn, CFO; Jane Cronin, Senior Vice President, Corporate Controller; and Bob Wells, Senior Vice President, Corporate Communications. This conference call is being webcast simultaneously in listen-only mode by Issuer Direct via the Internet at www.sherwin.com. An archived replay of this webcast will be available at sherwin.com beginning approximately two hours after this conference call concludes and will be available until Wednesday, February 20, 2019 at 5:00 PM Eastern Time. include statements, will U.S. defined call conference certain as forward-looking under This securities sales, to with and federal respect earnings laws, other matters. speaks is company of new Any which forward-looking statement, update statement only future a the any of forward-looking result as date or such revise statement no events made, undertakes the information, whether and obligation to as on or otherwise. this forward-looking statements company's transmitted earlier the is earnings in regarding morning. provided declaration full A release After session the company's to will remarks, the open prepared we questions. call the turn now to Bob will I over Wells.

Robert Wells

Thanks, Jessie, morning everyone. good

Before attention activities. results of morning. quarter made and press mentioned call discussing change outlook our fourth integration this I'd to in XXXX to was like This release change accounting the your voluntary driven inventory the by accounting in company's our the

consolidated quarter summarized in amounts. All otherwise change of revised previously previously fourth GAAP goods to fourth share and the of full $X.XX financial the result fourth XXXX year clear, X.X% accordance Performance our fourth let reported and a fourth on has in and resulting this impact the XX, remarks with in year been Principles, This quarter million XXXX, Accounting groups under or what and brands me sales on unless XXXX full move revised to and quarter full a quarter are or increased with sold revision. cost one-time our $XX.X XXXX Accepted on of or expense full to quarter year my made quarter per respectively segment retrospective billion. to Beginning and million that be quarter no XXXX and accounting and $XX.X $XXX year $XX.X $XX.X With million by adjustment website year-end XXXX fourth reduced full costs and fourth quarter Generally consumers for results. We've from stated. for to comparisons Coatings fourth full profit reported. adjustments was As both increased segment deck To XXXX to compared year year was acquisition-related results. revision there million slide profit operating and January this in

For XXXX, increased $XX.XX $X.XX to billion. or year billion XX% the consolidated sales full

in the Valspar transaction from for was growth million XX.X% January profit period billion. $XX.X a in fourth closed decreased on or increased for XXXX; Organic $X.X year XXXX profit June year billion. million the increased year. Consolidated quarter the gross As $X.XX the May for sales margin Consolidated X, of $XXX.X to quarter Valspar year. to the fourth by X.X%. decreased in dollars reminder, Gross or sales gross incremental through last XX.X% consolidated same to the full XX.X% X.X% XX.X% from

was in quarter XX.X% from Excluding in gross onetime to purchase margin Consolidated items, in year the consolidated and from margin last the period XXXX. impacts compared to gross XX.X% XX.X% year. same the XX.X% in accounting decreased

XXXX. to to year-over-year XX.X% expense same X.X% the at or million. also was XX.X% gross Selling, million sales year quarter compared XX% Excluding purchase $X.XX of Interest but a essentially SG&A full administrative items in fourth impacts $XXX.X the XXXX. XX.X% onetime XX.X% percent in decreased the accounting quarter, was year for percent billion last to $X.XX the and a decreased to expense consolidated for or million year. margin expense to flat as as the of and in increased general from for from decreased sales X.X% from quarter in and XX.X% $XX.X $XX.X billion

of to of to X before the decreased quarter debt For the Consolidated tax compared expenses The release. expense $XXX.X a million. $XXX year. increase included press as million Valspar-related non-operating to year environmental last our million related in $XXX.X to $XXX million to was in settlement pension and XX.X% full described a $XXX.X due interest or year months quarter plan related to fourth $XX.X profit fourth The increased million. remediation XXXX of million primarily

before $X.XX included decreased non-operating tax billion. litigation $XXX.X $XXX.X plans or consolidated the XXXX For Public million $XXX.X California results to million to year X.X% environmental million Full year expenses $XX.X and million, related settlement, respectively. remediation, full pension profit and of Nuisance

and income for quarter full share tax from Excluding decreased rate expenses acquisition $X.XX year. to XXXX for per and $X.XX non-operating expenses quarter year. the onetime share Diluted fourth The $X.XX share. $X.XX reductions non-operating in in a the share of share includes per quarter share benefit of deferred share XXXX and per expenses. of in $X.XX share per net our of for The per quarter XX.X% the effective fourth expenses on XX.X% was tax income per per last the income and adjusted $X.XX includes common acquisition-related from $X the acquisition-related share per $X.XX cents per fourth

onetime last non-operating common earnings includes expenses from full charge decreased quarter XX% related XXXX. deferred to $XX.XX per a fourth per the income $X.XX operations, the The in year per discontinued benefit acquisition-related per diluted includes tax per $X.XX from share. year acquisition-related share in expenses in of $XX.XX the these Diluted share of $X.XX $X.XX share $X.XX of quarter of and to XXXX $XX.XX from a The XXXX. share per per share common $X.XX and share income per share expenses from fourth adjusted increased $X.XX per for Excluding reduction. share share to net items, per $XX.XX

items these XXXX. in earnings year XX% diluted full share to in year $XX.XX per adjusted compared Excluding to increased $XX.XX full XXXX

quarter We share end press of have Regulation the release. year-over-year a at table and our fourth G comparison in reconciliation the XXXX quarter earnings per fourth summarized

down a our performance billion. group quarter X% to Americas or by to me break the take million few Sales the $XX.X Let increased segment. for minutes fourth in $X.XX

open basis billion. our and Fourth increased and all lead X.X% rate the in or segment operating and XX Comparable decreased $X.XX division segment by quarter. increased billion. year. year, Caribbean; in Canada than from year. XX.X% to year divisions to XX.X% months X.X% X% quarter segment sales the Canada. the were million $XXX.X store followed $XXX.X stores calendar X.X% quarter Currency year million sales Fourth to increased XX.X% and changes margin sales by in quarter translation reduced division operating decreased basis every points changes $X.X XX.X% more the to the increased translation respectively. margin last the Eastern, Sales sales X.X% Midwest, million For points the from XX Southwest year. southeast net X.X% X.X% and X.X% the last segment by quarter. Full fourth U.S., segment in the the in XX in Regionally i.e. quarter quarter $XXX.X in increased profit or profit Currency positive or $X.X Full year in to million. profit rate

recognition or $XXX.X Turning $XX.X million. quarter. million revenue now to the to The billion. sales quarter Brands to new million X.X% $X.XX reduced by Consumer $XXX.X sales the X.X% decreased Group; or in sales XX.X% standard fourth increased year Full

million segment costs million in the $XX.X from revenue million Valspar, to to for Fourth five the Purchase $XX incremental month in accounting increased decreased the quarter X.X% recognition $XX.X new the sales Excluding group sales by sales fourth $XX.X in compared reduced profit year. increased year. standard profit quarter the by million. segment X.X% The XXXX.

$XXX.X XX.X% Full to segment $XX.X profit the million $XXX.X or by year in of segment $XXX.X Segment $XX.X million Valspar costs XXXX. profit quarter $XX.X In in profit by increased segment incremental addition, was compared the million decreased from million. XXXX. the to million. million Purchase five the change year accounting accounting months results profit in decreased

million full increased profit In addition, the year from to in year. operating accounting $XX.X quarter decreased change segment X.X% Fourth XXXX. by segment last X.X% margin

year the accounting Excluding in in margin accounting operating margin fourth XXXX. segment year in increased the decreased to the purchase quarter margin quarter from in both accounting the the purchase X.X% and XXXX, operating the XXXX. in quarters quarter Full from in the X.X% to expenses segment from consumer fourth XXXX change to XX.X% fourth decreased in Segment XXXX. X.X% and last both XXXX XX.X% X.X% years operating in accounting expense change group excluding

consumer and we incremental supply reminder, quarter results. in described third million which segment year in brand the this the launch also of million incurred $XX $XX to support chain costs our exclusive in Lowe's with a As approximately expenses partnership

Performance increased or our sales by million quarter fourth reduced X.X% changes Coatings rate translation Group, $XX.X fourth sales quarter Currency to For $X.XX X.X%. billion.

full billion year, increased or For $X.XX sales XX.X% $X.XX to billion.

month million or quarter $XX.X from the the profit Valspar, million incremental to the sales X.X% sales segment costs Excluding million in Purchase $XXX.X year. by compared $XX.X decreased increased increased five 'XX. to accounting quarter million. the $XX.X fourth Fourth in profit XX.X% group segment for

profit or million quarter the profit Full In costs increased decreased addition, XXXX. results decreased by by of compared $XXX.X the profit from accounting the Currency X.X% five segment in profit by to XXXX. $XXX.X into was change segment in $XX.X million $XXX.X segment the million accounting translation year profit segment decreased months incremental quarter year $XXX.X million. segment Purchase $XX.X to fourth and million. million XX% Valspar

decreased from Performance increased accounting the X.X% operating addition, XXXX. segment $XX.X by Group change segment profit In in quarter million Fourth year. X.X% margin last

in in the accounting margin fourth operating quarters, X.X% at to quarter purchase the flat operating expense increased XX.X% accounting segment year last change XXXX, fourth X.X% Full the margin and the in from was Excluding both year-over-year segment quarter. year.

year segment quarter. operating years both in XX% fourth to margin accounting operating XXXX. from concludes review in purchase in and in decreased our change expense of XX.X% the the for the results Excluding our accounting XXXX, That the

Morikis, general provide call So for turn let over the me outlook some will our comments XXXX. make to and fiscal John? year who John

John Morikis

joining and morning, for moving our on for to Good Bob. year us. few on before XXXX our you, make everyone. Thank additional quarter fourth I'd to a XXXX. Thanks comments outlook like full just

that carry with view results in through improving giving a in January the momentum of a Bob In we shortfall often to in Our expectations following We fell anticipated majority year. the growth indicative of results. fourth and walked the quarter original cadence encouraging, was the into case, fourth of driving as quarter the quarter solid weaker than the our revenue the just our will of late quarter. trends short fourth start is us business first this the

share was or the increased In full increased share earnings to to by record Valspar. year, XXXX sales year billion cash interest, million CapEx record amortization, and billion. to of taxes, XX%. for increase terms an dividends five year as records; and many the $X.XX $XXX EBITDA Free plus cash excluding or earnings $XX.X for last from contribution adjusted and a we X.X% operating approximately was both per year. a to Adjusted to earnings XX% billion XX.X% than of more were $X.XX the compared by compared month net Adjusted measures. increased was per prior Sales year and XXXX, compared to of define $X.XX which the sales. before billion, flow cash Net depreciation operating $X.XX billion Sherwin-Williams

our All of record operating segments this to performance. contributed

of challenging segment Americas profit the full All X.X% the by comparison remained improved against year customer sales year. Group, strongest positive year and also prior a X.X%. percentage. segment in our were repaint Full year-over-year. the Residential year, Within margin double-digit statements increased dollars for other up year

a mainly efforts $XXX Performance Adjusted our We material combated with excluding by Valspar driven consecutive invest and by of sales good of progress commendable rate were P&L service We benefit from down XXXX, digits increases, we We revenue training which both year full all inflation increases, customer to XX stores were all In new expenses new Performance percentages. and persistent product of made reset, mid-single the double-digit year continuing Coatings program the about U.S. new introducing are to standard. net the eight the in. of was merchandising and the of and innovation segment, other as flowing year. our territories. in with and raw Canada, delivered approximately approximately up not strength efforts. up still $XXX expectations some at the across Company-wide, cost consumer This material five our continue Coatings also incremental impact sales Lowe's our packaging, well of a product anticipated. XXX product general midpoint led synergy of exited positive run million synergy new in relationship which opened Throughout were with segment Group year, products; and XX and very added months raw million feel were sales double-digit year-over-year sales by new to We $XX which categories this year retailers. in the and the paint the integration related margin industrial start key on group the as at price million. above about year, in Group the introductions.

shareholders paid debt $XXX billion. the to million year, approximately cash including to X.XX stock, million of purchase and and returned shares during $XXX by common in million dividends, we $X.X our we Finally, million reduced $XXX

securities raw immigration outlook these most of long-term, short Whilst execute economic, I'm these political Let include one remain deliver also uncertainty increasing our which and job on the me the variables year Fed saying ability name begin hikes, and those things confident a of could control. it's our are XXXX trade key and drive our and to the entered our and and quarter my to any success our sustainability and the few, things our I'm focus expand disrupt we rate supply. to initiatives comments to XXXX of and in for value wars, create demand beyond on confident across individually control; by less control and government in our that that of outcomes. customers. would we shutdowns, social market full we about cannot, our to the in first number on demand confident of and can markets. range those to ability adapt end we material that collectively on tariffs, what factors potential focused can in well positioned We

For the the to consolidated XXXX our sales first first X% compared quarter we quarter XXXX. anticipate will of net X% increase of to

benefit to quarter of plan include The $X.XX share. first the approximately XXXX per expenses of purchase will annuity defined related

accelerate ago, being most by but our March with American in you North weeks month two to that this the is January. December, critical in upward a inflected call demand our in in stores continue paint described in we We're and the quarter. small January As month encouraged remind

compared guidance be we given full earnings For X% items. this we net On to an expect per the the year to XXXX. compared onetime On to way to expect provide we to basis, income reconciliation year most in $XX.XX costs midpoint an comparable increase and common XX% at to sales is full of the year the the expenses. believe to better meaningful with We've share and to full XXXX X% $XX.XX exclude per per to included adjusted core this XXXX share, other acquisition-related approximately adjusted for outlook press Valspar sales last year expenses basis $X.XX a net guidance approximately $XX.XX Regulation for a G excludes increase morning's of basis. range on the and XXXX parts. $X.XX per release non-operating all moving acquisition diluted share This table reported illustrate our share

be petrochemical purposes. inflation as points the may should first no year-over-year data material our We half. for in be for helpful be outlook assuming in digits feedstocks range. expect A One and that low XXXX raw diminish compared few XXXX. rate the to of will be to XX% assumption through supply rate disruptions, this highest in low key we stable effective embedded the inflation second will quarter, the go is in additional The single and modeling XXXX tax

expect incremental million $XX $XX year-end. annual to million of XXXX with total approximately run synergies million rate a We in $XXX at of approximately

We expect the be is more philosophy be anticipated to X.X% reduction $XXX we'll $XXX $XXX systems capital debt traditional should last about expenditures improvements, sales toward on largely and in Depreciation million. about million we XXXX. focusing stores. million amortization productivity and capacity be continue and which to begin After will approximately moving new back our allocation years two invest as in of capital

Historically, $XXX targeted times to by end XX% EBITDA of GAAP expect of three below debt our earnings. year at by year end ratio net this prior the we've to We reduce dividends about of debt to by million should XXXX. the reduce which

month will $X.XX Next Board meeting to from of our at of year. we increase a $X.XX XX% Directors per recommend quarterly up dividend last share,

December options acquisitions remaining to at approximately expect continue is had evaluate to open We'll level XX.XX acquire dilution stock strategy. XXXX to that to make in set we million company shares. exercises. what market from of We our On purchases also a offset beyond necessary authorization XX

Q&A today me on of several our our be host be in we'll link Cleveland. registration a our and Financial asking related customary X. take Hotel is leadership Community day to joining up that Again, Wednesday, out let on invitations information you members Westin Annual of June at With April. sending our to your and program you Presentation us the We'll include will calendars; in site save session by to to followed questions. lunch. the a this the be to by will wrap that host date morning presentations X, and The moving thank your your and happy Wednesday, I'd Before team. for reception We'll like date that, June questions, we'll by

Operator

Steve first America line with of Instructions] Bank is question [Operator the Lynch. Merrill from of The Byrne

Stephen Byrne

the XXXX and [indiscernible] to I strength wanted ask about driving in double what expectations your what's view for… are market in of digit your

Robert Wells

for coming very clearly. reason through you're Hi, some not

Stephen Byrne

that guys. about Sorry

what's So residential double-digits about for in driving the strength your I XXXX? to and ask is repaint; market wanted the of that expectation what

Robert Wells

over been the cycle, driving And we that; seen renovation homeowners gives been in high growth that few value just single-digits. and point inflated and things I one five really strong consecutive the We've residential home years a repaint, we have this has growing repaint last couple slower confidence projects. think think expected appreciation, redecorating at company-wide in values in is home industry although reinvesting for than we've turnover in the but industry-wide growing the double-digits probably is Yes, residential years, in not

last a in now lot unleashing drivers. is capital etcetera, at in Those to been biggest the college including educations some kids' two renovate to of decision baby cycle things family the stage this so two or it appears. place; thing home boomers second probably and or the investing kind of over The are decade they're education, they've by agent the the

John Morikis

very make Yes. at that our want very we've got level products services developing level. that our a and sure make that through to very we're store from those customer's field services meet responsive I'd be money, more I to deliberate and needs, these been products we've customers, deliberate and say to our in we approach customers to rep take well help a and executing we this, perspective, think terrific stores organization the our and

Robert Wells

most remodeling by XXXX. in measures outlook, residential upper the In single-digits, the the X.X% terms -- I grew range X%, our think in of spend

of little but XXXX a X.X% number range X% bit a in like moderation expect in We year to a perspective. the that from historical back to strong still

Stephen Byrne

you. you factors it seems John little and a CAGR, here of EPS, just that mentioned was the inside term wanted a there longer factors of is outside think variables and with the gotten lot on world assurance how that XXXX control; I uncertain XX% control assurance outlook. more has targets going know Thank then. guidance to EPS since like you about the established,

Allen Mistysyn

You comment call can know, get in under we made that. XXth an XX, at about XXXX our outlook we on an we months our last Day. the update about June X outlook for a of giving think I And on on Investor you the rest belt and do

Operator

you. Thank

Sood Bank. Our with is from next question Nishu Deutsche

Nishu Sood

Thank you.

'XX, was guidance XQ, in the on I question and the to to in wanted the to 'XX. for X% X% X% the X% First then ask sales

net some apply versus definitional account even differences; I core sales slight total take sales net into acceleration. if you and the think

goes -- back of commentary growth like in sales normal the what momentum up so on? picked accelerated driving had is to momentum to back as normal picked sequencing your back up Given that year had January; it sounded

John Morikis

portion Let me it. the January begin of taking by

momentum. to you good come year guidance, good Al, far we're sales quarter that to… our will so feeling the -- as that above a January in And high comment as want about we're very Our off start, first

Allen Mistysyn

and sales of of the to U.S. So of Nishu, X% always continue at guidance look we'll end that X%. when to engine year, the start higher drive Canada stores are company, you paint we that with the our to growth still the

and feel say even in related the coil overall, a think by with will our a points price that part the a Couple to good is tariffs stores little the mix. like with we to increase a be you and on went a X% to I'd where but in talked headwinds you of we to effectiveness, of discussed, mid-single we've Lowe's had Even and it 'XX single-digits [ph] seeing U.S. to by is group. of headwind pro about we and little We 'XX into As our and industrial, year, consumer a [ph] really headwinds outside in in about in X.X%, deference not really positioned which some a close that we've that good of as give good customer, short-term close about program. the expect lot included. business to -- price be; America, we're choppy we that. rest still recall, October feel very talked but that continued X% overall of to over X% wood data going it number momentum for going little headwinds, business about the excited though our in programs going out be with we and price in to digits retail or forma very low and segment the ahead FX we're still we're bit Coatings; And lot headwinds should channel about, little X% for then on feel like a coming be we X.X% see then North price. we're still We the at -- very feel Performance where talk we group, I is China other and particular at about we're would X about we're in of and good got

Nishu Sood

for what XXXX? openings 'XX expect regarding roughly XXXX? in kind XX you thinking store about acceleration of Some And from XXXX, pace in then, what would you or in are

John Morikis

range, that pace. run about I that the to XXX feel think going we're here, to we same the pace plus to good XX continue

Operator

question the line Thank Robert Sachs. Koort coming you. from of Goldman next with The is

Robert Koort

Coatings underlying How started from the sorry, on there focus the the I we XXXX -- those see that momentum, I I'm guys develop XXXX? to guess, margins wanted Performance go as you of momentum to do and the cadence margin through perspective.

John Morikis

price certainly you took expansion and then coming accelerated improvement thought we in margin to as flat with second operating materials, out are that is year-over-year, Bob, tight the know, synergies along that end very and and on we out good standpoint an about price with team controls we realizing, SG&A that. year we effective going an of flat the year-over-year expect the increase We they and feel essentially an good our raw again. operating on -- margin believe quarter, is

Robert Koort

have is Wall guys synergies, might know articulated to revenue on cost embrace integration? anecdotes with the thoughts you And pretty or reluctant any have revenue achieve and the you updated standpoint but to I what you have synergies usually been Valspar do able obviously Street a from synergies

Robert Wells

are excited world on put it that I Bob, teams would through continue the this and more we've we're mentioned very as our our tell you the around this. teams to as number harvest is together creating to more we're we a about but through working dialing before, going Getting not excitement. that opportunities

accomplished about we've feel and that every have would quarter what's we better ahead. talked and every I about felt tell we what we've it, So you good quarter

Operator

Thank you.

is question Parkinson with Christopher the next Credit from Suisse. line of Our

Christopher Parkinson

Thank you.

growth, packaging your appreciated. coil how on a -- terms GI be would brief us Just just top sticking could there can opportunities P&M? Just line of versus you you're give what are on with thinking you [indiscernible] seeing about PC; you --

John Morikis

little point might our standout been the tariff I would It obviously one overall, here performing helpful; be coil; America has have, for America our performance that well. last break North be we best down has would our talked North has in it terrific. The year, of region been the by here but been Chris, bit a in about coil all significant that out I'll North we the as on segments. impact America, largest business

responsive also well, there as strong of I their Overall, strong the we've the as our lot moving turned kind tariff and here and there flux performers, we some packaging well. businesses, that were we're Asia, be positioned our feeling but all was were confidence they've but our in got was and the fortunately one Southeast capture continued is that a coil very say year moving that's And issues. our are industrial down corner it impact, strong the manufacturing that well. business about say of that say in are to softness I'd as year throughout as position and our the well. great and I'd XXXX Latin had I'd softest automotive America; are a we leadership manufacturing we've that's well was to team in say GI as they're the there would is customers Europe there, drag related something position across country quarter fourth a wood of our our as customers and GI a that's down that's there, down [indiscernible] have -- in Asia, to business, customers feeling and another our the state teams and from of tariff to terrific, got great

Christopher Parkinson

And given also the well valve do see coatings; -- and equation? them least where of consumer, long-term just that been macro valves at and surgeries your outside [ph] the the Thank choppy obviously legacy just whole least historical have -- price of margin seeing when most just you just your teams potential; or term cost remainder -- executing -- 'XX, recently. [ph] you're longer environment, the you've think your in about we opportunities How realizing at now should margins we margins your about of you.

John Morikis

getting Group talked XXs as teens, drive other that's Sherwin XXs, would low legacy integrate and synergies the Coatings Valspar still side was The to a into same that expectation help bring those number, high business Sherwin and the we're have up legacy low the the in up reasonable low as for consumer, Performance and the still. to help going we high that recall teens goes and teen XXs low we and about the high we to Chris, believe is the high businesses. the you already; on help teen, legacy to target, our drive mid teens Valspar and getting is teens going

Operator

Thank you.

Our next with the of question from is Baird. Panjabi Ghansham line

Ghansham Panjabi

you off, public, your I housing backlog just choppy, in backlogs, paint general sub-segment? etcetera? to specific very data XXXX been in the first customers that you U.S.; very in are customer the you obviously very of touch guess telling store define contracted choppy. sort What however, John, can data construction terms for on has of

John Morikis

you -- I'd speak year, they the backlog going having, it's the bullish discussion when remain forward. customers that as say they're it's the with a very see have about well what bidding that our as that very Ghansham and we're they our doing confident that customers had,

So position feeling and in to good market about this continuing we're space. about we're share grow excited pretty our

feel national and and regional on the well residential, new mentioned You the we builder having level, very though local as in penetration we're very we've good done builders.

I'd market Our are right in you're commercial hard as residential away you the pressed point to it's to various repaint. go about position and but though hard that pound the this find anything we in customers The segments, side that stronger, we're make continue the getting and now. strong excited at across -- is

Ghansham Panjabi

in margins paint as be year? margin related remind to the so segment? for think of sense about And then, share just investment that, strategy differentials, related the how switching to Just And expense the of you trying then what and different is from much. for relates consumer a how to brands non-recurring Thanks the position the to I to also go-to-market versus going 'XX. in brands front the just you consumer last season? differential much get of terms gains as to it. Got to to 'XX guess Can us

John Morikis

talk year-over-year third let me in Let that me first those and fourth was $XX you hit, about our talked as the that's recall, and we about and about XX% margins, we quarter. of $X.XX onetime realized about million, a

to the XX% the investment You quarter with reps other as in also stores and coverage in our volume to it seasonal adding ongoing that year-over-year. versus investments weighed we've where quarter the up three that rep have on margins we have get the the program, a and so small adjustments down to four rep per ramping the been were other incremental consumer, we heavily

On the...

Robert Wells

side Let back the of me that. take

to help to we helping is our them there look areas this these that us As that leadership the as a have bringing the we've customers Ghansham, we is clearly, and our expectations though of Lowe's their in our very got customers what's grow of has very it excited will and a be differentiators the the different; continued say customers and specific from have just making of organization, products, have to and their the relationship different; of wonderful sales and reach top position to you their them so the but to when stop lot the I'd Menards help we're on competition the of when some proposition segments can to desire with simplified goals. exciting, our number reps, future in as want well excited you in we at look will as what's and help approach But grow; our as we say, and services, people who and them think high brands that Ace alignment help each goals doesn't that of other have customers at about that win. focus at and those strong okay, in that the think reach our growth their Overall I'll you we the it's there, bring separate to sure far branding also we're our I talk and we about them with about into marketplace starts associates. going in help very alignment

Operator

question RBC the is with Arun Markets. from line next of The Capital Viswanathan

Arun Viswanathan

was I the X% And that I imply thinking just QX, right? to were growth what of X%, that say X% on about X%. and wanted year. sales year that to in mid-single X% imply maybe that upper understand than as case, that let's an The to volume from you X% X% to be that mean little X% so if would guiding potentially also A) what that to price on to of looks the I the like that, it is X% on XX? at guidance; higher to the thought. end of And could January a is and the acceleration is bit the tag X% is let's say X% you're maybe potentially Thanks.

Robert Wells

quarter most when starting we highlighted March is you're it into better what talked it's call; how little about And part the think a as price. a on be where about you amount and think but John even get we'll end higher said we the and small XXth quarter. see first the at and would first right right in the I goes January were of bit which the the we it's tag being thinking breakout volume your off significant I between January

John Morikis

but Yes, I'll week introducing; our the the together those they share that us just new with we about forward see our new I'd that we're the information at just feeling we're talk have. about we're had gives excitement to an the is we sales the team about stores and teams this it opportunities also mention, meetings say what adding, going consistent. momentum that good opportunity products to

Arun Viswanathan

right? can appears line expansion, And back -- some you're as know, may margin size the you see as be year. opportunity on margin lower the in the that follow-up improves a P&L gross you Thanks. in Is you way us? through potential price then on the It half. that Any just could for gross cost down that especially

Robert Wells

the up Arun, se right. per size absolutely I but won't opportunity you're

progress you the first XX.X% at on gross growth to our expansion. good we raw to to think costs going EPS the make half previous But material margins midpoint, mentioned, have will margin to XXXX. we're that be second company than get I a ways in to know, And see that with And go have expect. back we're half. going would John to As year-over-year as we higher that our

Operator

Stanley. is question of next from the line with The Vincent Morgan you. Andrews Thank

Vincent Andrews

inflation whether Could about this be going or bit non-raw is a talk material to you little year year? versus last

Robert Wells

to believe it again our see some it's And those the but putting going digits. going going not in I increases -- freight the -- probably 'XX, market, -- I and you're still be to going in significantly magnitude near we're that that would side is headwinds have think buckets. it's You're And be to and in two on low single going do think to still be we're main to certainly at salary of up biggest to there. be we're went through, basket, the some up our 'XX we additional headwinds

Vincent Andrews

to a range March the you're the is to X% just obviously us then X% X%? for month ahead what earlier a first like biggest seems X% And quarter And and follow-up; the but get that's and of us through, month than wider normal. it obviously a you that would mentioned versus

Robert Wells

John in uncertainty macroeconomic variables the opening and comments his that. the highlighted around

first swings we quarter If volume swings; more you think percentage about it's quarter about our our cause as weather. and relatively impacted and small quarter, quarter some in a have are fourth so you past, our in talked by volume get larger the first

and of going of end high out our the the we better stores to it's what thought. to range Canada that get come in to U.S. So, than being

Operator

Vertical Research is the with Kevin question next McCarthy Partners. The line from of

Kevin McCarthy

in pace the your Would on business fourth for growth XXXX? and the business that the comment marine for quarter in protective outlook you of

John Morikis

couple little when share was we had took of harder the because that momentum at a marine for our we been It protective went petrochem very and We've over lot years, hit come in sorry, business. time working back a the share market; market in talked good quarter -- a of same of adjacent us that's the last and down the markets. in hard we've that I'm the

well, -- platform products and a area new going our projects in. and we're coming unique these a when larger needed, that store leadership as as performance it's of on able and So, lot we're leverage this for they're of to good distribution terrific well is us, as here, coming out direct as

like So very team we are -- that high have our we really expectations XXXX. position here really in and for

Kevin McCarthy

in actions is in year etcetera? sort factors sounds like it other that of factors progresses as out tone the opportunities cooperate; the can't business turns pull the productivity it and seems the levers John, of trending you nicely don't terms your you can macro positive belt, to control tighten overall. January such what If and

John Morikis

the facilities, would Kevin, one thought we faster or we look do of opportunistically planned. is things maybe than at that consolidating we'd

quarter leading things in of to tight we year about environment quarter the We us up going macroeconomic the this I these pretty we're past; are unfold and our that we will control really to how and how controlling second see as a work the tell out, from we're there we some need and it's think as SG&A see unfolds, certainly large second just to but and we go, of SG&A the talked have kind quarter tight.

Robert Wells

areas return. that know, those that view I'd like stores What to in areas adds Kevin, helped the past is innovation; the years in in we invest been to stop back those of Sherwin-Williams. areas the opportunity a coil, spring adding the were to you terrific investing market also this to throughout or -- choppy we're company, expect continued going those choppy past us started have you that that have for almost ones the historical over of also kind shouldn't of

he invest flash the point; areas businesses Al's So important going but reminds our morning with that on come I a in in to sales it's when my every we're in smile continue about to to face January. me talking

And we're very guarded so but optimistic. we're

Operator

you. Thank

the Mushkin with Our next Research. from Scott question is of line Wolfe

Scott Mushkin

-- there some in me we're fundamental the think is bullish of your big, the a January that some do is in kind dribble some on bad is beating I'm I'm but factor a continues just way; just Tell I January and weather think there just was good simply, it's you like So in month, market clearly, little understand to seem a big coming it as in obviously some it dead to data but that's taking has you know a improvement you what's driving I we've and very trying share and of here? -- hey, guys it; improvement fourth horse is mean, but taking fundamental bit quarter. and you're or pretty share been housing, had small

Robert Wells

Residential to particularly share, I Scott, on We've would taking continues up in relative latter, remodeling the and growth Repaint growth odd our last kind we're based cycles. existing growth and think The historical to in a do former I turnover home seen year. and But of go languished Repaint. these up Well, are decoupling it the has of for Residential rates, while and say also in times activity. up,

a say to I in who we'd many seen million that's the of homeowners of And demand. a higher-cost we significant stay and stay your is think the the the activity housing place. rate term, markets, And redecorating. in they're short us, working almost are builders And this are more finds. We filling short answer to So oftentimes, which out. lack develop activity kind in housing of But environment, at seeing incremental been to remodeling that, we're by of X supply. product place short out much of as unanimously point about to the affordable multifamily I'd buyers attribute demand figure the macro million planning next that, uncertainty in lot over this sustainable. to of a term, portion to decision somewhat and translates remodeling to view redecorating think household also done to think to we formation the for the is, years. that, lower-cost and housing investment that going in we've in of And have level triggers shut void $X.X the incremental $X.X that longer the term, step-up

Scott Mushkin

question just issued. is the obviously going stock than being being increased regarding you're more be buying by second back My to shares substantially, quite you've and -- diluted what's dividend

comfortable if capital your wondering your you for and goals update are was of I us on what where shareholders. you're on return leverage kind So to could

Allen Mistysyn

X. still targeting to a below going in about, long-term talked to in debt we're we're John get X.X. still of our million pay should EBITDA another That ratio leverage And down $XXX to As leverage X XXXX. debt

about being far buyback, here's As specific share say. I would as the what

then going the about, to historic policy. back of believe buy absent get -- the of towards our going back the and to policy XX% keep dividend And below M&A, We We're X%. XX% raising back. to be. As that's talked place We're we've our our we're the we're stock EPS. right CapEx getting to year to prior

So rather out. we'll than definitive, see the a how plays year you giving

Operator

Wells The is Stephen from of with next question Fargo. the East line

Unidentified Analyst

Peterson [ph] Steven. on actually This for Truman is

wanted Could I your the focus derivatives? So give views kind guys just me views question that outlook. really is first or XXXX your oil you the versus material to on break us apart basket on your raw give dioxide and titanium of

Robert Wells

raw worthwhile actually pointing out And I that increases inflation 'XX. that, into before Truman, get the of from in is material XXXX it's we anticipate annualizing that, in that obviously, majority the we incurred

step-up equilibrium The pretty movement. and midyear standpoint, year-over-year supply basket important an at So dynamics will TiOX supply feedstocks of petrochemical that, kind the that that is declines. price show to downstream mind a will saw we decline to the commodities and supply-demand pricing. we It's of the in the resin from in also fairly you intermediaries, of monomers demand sequential additives. in should when material think we've latex, to particularly of and it's of quarters stable some cost should about the the last meaningful the feedstocks predict annualize in North we're we the of result X that kind petrochemical resin, plastic go that and to result raw solvents -- packaging, recall From before difficult American these that. cost talked the But in in I keep mentioned in affect there are costs, some in side level year, so pieces-parts going a declines

is price just Metal real improvement spike And to in year packaging matter due in difficult of has well, translates see past products of inflationary it's cheaper the a been steel as and prices resins. we the over area some as to cheaper propylene So also tinplate. sequential not predict. but to lower, steel reset timing should the the a those

Unidentified Analyst

XX% marketplace, any if And and out suppliers? that; you play guys have just more following a XX% global a material significantly? how TiOX kind on guess, TiOX expectations to hypothetical of to the Europe single you if in I bit with remains on guys could for change I being your China I XXXX, down change guess, a oil-derived expect that from year Just the behavior basket? and of slowing up seen the drop remainder jumping Would digit over, raw would of actually your fairly it low of oil, throughout that

Robert Wells

oil won't On they It's the seen of matter of issue if, intermediaries more the easing timing sufficient. oil that yet create in less the it Europe, are, have supply Pacific, where American translate chloride America. Well, the move the longer TiOX, of a course, in and a in product. And see. in more that to in chloride sulfate we the really North declining remains does North Asia not a should so more demand assuming, inflation of to in softness see the derivatives affects of not we market, remain that and pricing than extent you probably slack big product, that,

petrochemical outlook remain So right the down. of decline now, will side is our outlook for TiOX stable, is it and as feedstocks our basket for slowly the these

Unidentified Analyst

could guys sneak versus know appreciate in XXXX give one kind qualitative Consumer, won't XXXX to where synergies; some Performance remind you us I I synergies more -- hitting And out on probably but could the really us on it I just could maybe expectations. difficult you If will analysis Coatings, But G&A. you guys you be are quantify, just of it? breaking

Allen Mistysyn

be cost that you then, $XXX goods sold the sold. in second by XX% half. synergies of remaining of our will X/X about $XX our XXXX, of what goods -- In $XX is, And of million, as one-third segment. midpoint, just in The to million approximately was first million break will out XXXX, been Truman, But in for in will about about X versus be to compared SG&A. we've in XXXX, reluctant at SG&A. tell cost that cadence I XX% half the of in a

Operator

the Don with Carson Financial. is Susquehanna Our next question line of from

Donald Carson

questions A on Paint Stores couple Group.

it I how related? is, was all was And Or just hitting hit off weak. did growth Was it weather price That exterior? I'm break Just you there in was how it -- would that of assume as to that in in volumes X.X% were interior same-store versus that QX, XXXX? And well? much sales wondering, just volume? expect something out

John Morikis

So a few questions there.

interior First, North America exterior, both Same-store I but in this expectations. and stores. our both up the below price X.X% sales would it our North were When American you way: mid-single were they describe was about X%. digits, up about in talk approximately were

Robert Wells

question demand rebound on that with a the in when in the -- weather as mid-quarter end than business a you of affecting XXth, Don, something the that to is of kind that the quarter, middle we fourth quarter. our your about that of at us of said see terms other impact, it's fundamental decline indicates doesn't the

and, fourth the -- one the need of that of particularly United States, was half So the portion at only a good country for data, look during weather Eastern underwater the quarter. and know to

So partial it from feels like was at impact some, least, it weather.

Donald Carson

past you completions. rebound, to a know, about 'XX? And paints outlook you've you growth And year growth higher plus high talked I of in the year? weather what lead nice then to in as the see due in significantly that, a expect rate how Would market compared look XXXX; overall this you commercial market out to for Bob, in this to the U.S. architectural do a the

Robert Wells

commercial I significantly. X% gallons into mean, reminder, go new market, Probably, only if about the X% not industry, down construction. or the as a breaking of you're industry

Repaint jump-up architectural. was growth segment would DIYer drives that toward been that all. in the And in will forward, the kind the like other years. do-it-for-me indications, in pickup pause, Residential housing the a there strong. is a good sales meaningful X a or thing. drive completions a new don't which pro business over whether to of us. from order our because November. looks over a for degree on activity, But based hand, market, So more the has little starts whether Housing very couple lagging market has that U.S. help for early continues -- going is And it away growth very migration the segment have to it's taking just If business on DIY, mixed is know. DIY in be doesn't It strong be continued bag been a largest a quarters. but it in a weak, last been of last high-share home in

at looking rate to All XXXX. We're X.X% of too drivers -- growth. to in be early that that at, of that we it estimate. rate the a -- calling growth But it's based going by industry macro start industry is of a on off we're much little reasonable like feels not

Operator

is the of from UBS. line next John Roberts The question with

John Roberts

anymore, because of but on the don't took segment You don't earnings you seems margins, break out a Latin that results down disclosed probably, if comment like The hit to translation. effect on Americas FX America you I pretty the they can know there. big qualitatively

Allen Mistysyn

right. price. impacted said, done that absolutely to FX We top XX% a you're raising a But really that XX% has very little team being -- over -- hit their their of John, or close probably good Yes, job took a sales. both a that

dollar-denominated. basket the a know, raw material U.S. is you of As significant portion

price positive... was would I and say as with SG&A. chasing currencies devalue, their should costs I controlling up, that the say year-over-year. So our positive profit Or been and go we've And with

John Morikis

progress teams currency had hard. the your there, a deal we've had the -- moving it's ground are is that progress to in working to issue the direction. on making But And We're right down with. point, we

Operator

Global is Seaport Harrison Our from next of with Mike the Securities. question line

Michael Harrison

go activity. back on DIY the Wanted to to comment

did on government Just some during any repainting shutdown indications wondering, not that and you with those to people some and lot that their a grabbed working, projects the of got time? home folks have of paintbrush work

John Morikis

we suggest strongly but really, that do. they Not

that feel We a a lot down, very a Now pin direction I'd that as or do say the can it's things in we've of point but bump. don't we as comfortable, driver Mike. going hard right to I to described, think speed really

Robert Wells

a segments significant patterns -- across fourth We to seen quarter January a January. in change change haven't from the in buying

Michael Harrison

next for your Maybe marketing that's an campaign? idea

John Morikis

you There right. that's go,

Michael Harrison

to business [ph] ask wanted Then within Huarun China. the about

Can be kind better outside the you business? mid-single the digit, consumer for but consumer softer. mentioned worse outlook trends year than comment that of seeing downtime the just is new going to would lunar last You U.S., the to the low of China sense or Any within kind year? be you're on

John Morikis

includes of to much been that is Mike, the the brand focused a applied been our The to relates it that's shifting of different bring Sherwin coming little say side. wood there them to and brand business want predominantly brands just and themselves bring factory-applied competition transition technologies as is lowest benefit in a the to over help well. try on that We and that's bit to We we together a by I'd the can Huarun from as our of Valspar a of to They've features [ph] And in-home. China, through the a wood differentiate. team any that help to product. go be to ability them don't interior supplier, stretch. architectural and going separate on technology -- want lot

development well long So way a executing underway, but we're going pieces strategy the we're there's it, is go. of through that transition and to right now, and

Operator

Markets. Mike Sison KeyBanc is Capital the question from next line of with Our

Michael Sison

think thoughts the of in will the to variables you terms When low there, for raw high you end is impactful about 'XX any sales get in most to end? it getting or are your Meaning, which outlook synergy? on terms range, -- materials of

Allen Mistysyn

Yes, as the it's lead the some the demand short-term faster but grow certainly and line these always turnover a drives that. is But anything we else. U.S. lead. volume, helps, get feel better Mike. Raw always for volume of And than have always always materials we'll That's see bottom driver. headwinds stores annualized,

Michael Sison

Consumer in gap Performance year. will be materials closed have terms just the this gap. in that's close if But able embedded to it whether like your Group, sounds Coatings certainly, you this guidance the raw get And in year, and then, the stores, pricing of curious they will for

Allen Mistysyn

to work in And Coatings, the XXXX that increases were sure. not needed. Performance increases that for to fact gap, you Valspar did have 'XX took We we price when close throughout back the the the I the and get do say look businesses and

get to these to that offer that, customers. chasing still we we we're need and as do services it continue to we So the

John Morikis

a and last companies and benefits component. think services, the helping continue and important their our both pricing to that the or -- together as that's introduce goals, reach a piece ability these supplier is products customers technology, our in important an able stronger to The leverage supplier, more, those a of bring And component them a us way positions as partner, as companies our get really better I in that we come to the as to well. we're

with together Al's them us We as in our to going way that very customer allows it's take coming but well. of just bit a also work with a to But it's the time. price well. get little want work the customers. So all want We point, to keep to to

Operator

is Longbow. question of next from with Garik [ph] line Our the

Unidentified Analyst

a is how X%. much secure follow-up versus on hit new secured just the that need How from the XXXX the outlook, incremental to to pricing much And guidance? actions already of you pricing

Allen Mistysyn

the We've talked up about the months. XX% U.S. stores. The effectiveness improves get X and over to we'll to over time,

working and don't we're with imagine, track talk our have When and just much, the increases. as as more where load-in about to rates. and the to businesses, different different in businesses is geographies move because timing the other and those similar different choppy amounts. effectiveness we that. can end So price with we still you expected And detail they're you on And through

we in in as in through quarter we'll Performance effectiveness Coatings we XXXX. our continued particular. we're So see see that We getting we go need. our And the performance believe fourth effectiveness

Unidentified Analyst

saw. And just expected XXXX? the into my some those cost chain any adjustments are continue follow-up of to of on that you lingered launch is XXXX and into QX, supply

Allen Mistysyn

still. in consumer to, cost, The take quarter opportunity a quarter No. just first we'll in I'll about first a ongoing is program quarter talk small just and is cost reminder, that as the the your our

want that we're -- to impact see I are margin of So fixed. pretty fixed the the on going to those costs program don't but say XXX% are

margin quarter we're small and on to operating year-over-year. in going hit a So volume, a take

Operator

Melich next with of Greg MoffettNathanson. line is from Our the question

Gregory Scott Melich

at the make sure maybe this right. the a so the and of leases Got you up another in like a piece cash dividend like should billion. to through there billion? it be $X touch that that buybacks Or something And $XXX cash seems just is as free look lot, year or paid your lot, If and million would missing, sort a or debt, moving probably $XXX midpoint, accounting targets went $XXX I say leverage I want and $X down change else? guidance flow under million does on got to I of we're flow there mean million even take the be

Allen Mistysyn

think It No, M&A accurate with on share there's said, the I you're will directionally pieces. piece. depend depend moving buyback activity, the I but will another not like --

Gregory Scott Melich

mentioned turn you're maybe that on of the that going update I before change when accounting leases a And think standard? to adopt you and leverage. the was new Any half on

Allen Mistysyn

Yes, assets XXXX. we'll we'll adopt the new of million. $X.X about and And liabilities billion in $X.X an standard see in to increase

Gregory Scott Melich

And $X.X $X.X billion. on the billion impact the to leverage ratio?

Allen Mistysyn

in EBITDA, But leverage you of The X.X, portion a rating you when it's think a the range. X.X they're yes, factoring ratio, standpoint, that. it that already somewhere agency look billion-plus about in $X from at or

Operator

with is Group. line question next Research The Dmitry Buckingham from [ph] of the

Unidentified Analyst

of coil was exposed Just that. wanted bad as are industrial exposure outlook General one you guys earnings or seen season to And meaningful U.K. European in in this in and that's Europe. sort there through regions come maybe market sort construction if that of of is Coatings? year. in construction of other businesses is go big Industrial or to back present But type wood probably call any and aren't I theme as your building the construction either market you the to the of terms in through Europe for some your know Performance way paint, anybody's Outside construction in

John Morikis

about pretty that coil got not ahead that have of too significantly, could remains it to we have worried Dmitry, there, share that opportunity, you, accomplish to be We've point, business, component, to be down it a lot diversified the market but I'm the your right would and versus Yes, got impact. to there. truthful a if us a But an we've now.

pedal to Europe. metal the Coil in we're So here

Robert Wells

And made primarily well. residential pretty a We also acquired go business, wood those they some point Europe which been businesses that's about fact soft industrial as XXXX, back that we have when construction. the have in exposure solid into joinery they would in a

Unidentified Analyst

little to in of bit is that exposure, but untoward terms a anything ability certainly So there's of not your impacting grow?

John Morikis

I No, continued the we've that's with our in here but January. for was in the earlier first spirit as the did and of Performance -- and to Coatings business -- that the European XXXX, mention softest, transparency, market lap

Unidentified Analyst

they first then, in even sounds profit fourth next X for maybe first and line a up in operating expect maybe delta terms staying bit Performance just year-over-year -- quarter. a the put you flat little like, margin the quarters It And margin negative with Coatings, year. of still, of

or year-over-year visibility movements some of in the margin year-over-year? progression business, raw getting for in Was you improvement it can the parity the quarter. modeling synergies it terms quarter? understand the for shouldn't the price to can given fourth some margins in prebuying Was I you be continuing in of or provide that explain, last just in? what year, increase trying finished So hitting or sort strongly you put drove you I'm how on this why fourth material of sort Valspar of chunk the

Allen Mistysyn

in as it the I not our in uniform. said, as It's differently Yes, pricing does than stores. comes But Dmitry.

saw quarter certainly, we from fourth impact year-over-year. sequentially price our the some quarter and, certainly, So third

harder a done They we I in would very predict at getting on longer, sequentially, have team in the job But good the as timing. to and and facility the formulation managing than right. changes, getting they the do. faster more I has say, job start think and further integration, we work a the integrating planned, to was very savings like. get just what into there's of synergies And their done you're consolidations take good and are expenses.

raw margin from put Our going we tell sure, first with we're effectively well, standpoint, expansion year-over-year, -- price and and in offset I you, agree first our a for half start I'll to you if implement higher our we that. material in is to we in versus, be that, can half, half. to second continuing How can seeing

Operator

of Rosemarie the Morbelli from is G. question next Research. The with line

Rosemarie Morbelli

I related. and was non-BPA of talk terms the we a wondering, didn't which more area really details in could you if And non-BPA businesses little packaging. us give one then is not about are

John Morikis

our the business, with performance of we have. one that very strongest pleased of packaging We're the

application is very in product. We leading unique a VXX a It's our and have technology product. that coverage product

run customers. the that this here in because excited more plants of So gaining growth we're efficiently of for product ability our and the about we're to smoother the

getting savings more from And we've getting a success the efficiency overall, tremendous had more product be demonstrating is But can customers. our and various more enhancement the expensive. product out. slightly applied of the be so might online We're product cost this and the the that we approvals though to owners. even are And generated influencers and and value

is team excited really going. So this where about

Rosemarie Morbelli

So in every the if look slowdown beyond the still what at almost and grew the market packaging decline Europe we category, and did.

John Morikis

Yes.

well. to fair the Europe in impacted by year, market; it's think last were I affected in the say had that we as that packaging but market better than overall some they dynamics

Rosemarie Morbelli

What was that?

John Morikis

impact impact on product it's our that you the and look or on things has harvest food customers at the a had Well, if us. direct of like that

Rosemarie Morbelli

I we talking and vegetables, presume? also fishing, So talking are we about are about

John Morikis

about so... Yes, avoid I'd to on say as earnings weather discussions vegetables a our group, having try and We calls, overall.

Rosemarie Morbelli

are level have the going understood any you Sorry. is If whether I to not going properly, M&A. depend of on buyback to or

say but there you something you is announce? it, that could you look could sure pre-year-end pipeline, or I'm -- when when be long have So imminent you a that at close could XXXX or

John Morikis

and to get would cross, just we're dot so good here. ourselves ahead some I a T's others. optimistic of say And I'd want discussions, of and we're than And stronger, leave I it long a to in we're lot to I's that at way discussions, more having that. go. there's But to so don't

Rosemarie Morbelli

if looking looking I just are same X% may we XXXX at And similar over are store the we If comps, in. one a growth? sneak at XXXX,

John Morikis

I'm repeat the question? you sorry. Can

Rosemarie Morbelli

less? growth growth the Same-store more at XXXX level versus similar Sure. X% XXXX, or

Allen Mistysyn

or less. More

John Morikis

Yes.

Operator

Speer Associates. of line is with the Zelman Justin from question & Next

Justin Speer

P&L, be cost, us those one, that that what you what questions, helpful. transaction on is where associated integration the would housekeeping. are and the couple A with tell Can for reside in basis pretax pretax a $X.XX dollars

Jane Cronin

integration of $XX and SG&A. goods million cost, sorry, about transaction $XX $XX is a and million cost On of goods of -- I'm it cost XX of million and is

Justin Speer

questions fundamentals. couple a on then And the

growth last remind to it can January, out, what for Just mapping your was March that monthly pertains us at year, thinking the the Americas as business? you February, comparison looking -- and first core the in quarter

Allen Mistysyn

but break by last it quarter out won't We year. pretty we first quarter, strong had a

Robert Wells

X.X%. want was I comp the to say

Allen Mistysyn

comp. the is X.X% Yes.

Justin Speer

year this first know quarter, 'XX fourth in which of year. But that quarter the step-down from that's I But affects last weather like cold the recall versus pretty to a comparisons that fourth stepped in -- first was how the see. quarter. the the X.X% don't quarter down recall We'll I your growth in down last year I

Allen Mistysyn

quarter you X But effect had October correct. in of versus essentially out X in the 'XX also our 'XX. fourth price went because X That's increases of in 'XX we December

little well. So it that a moved as bit

Justin Speer

accretion the front, assumptions relation hand margin you're dynamics non-raw particularly margins cost if and from as of you in margin you're through, line thinking about raws to for terms cost cost of what in are already implied tailwind bucket to a thinking in kind cost much price for you're inflation, that baking achieving in cost for in that On of how 'XX? snap terms you that price have price 'XX, for today,

Allen Mistysyn

margin think year. the expansion as I to growth EPS XX.X% We're break we the to It tells be. we're our just in margin going going have you the increase is But to what out midpoint. going not at mentioned,

Operator

is Company. The the from [ph] with question Research Eric line next of Cleveland

Unidentified Analyst

X% The a is an the I the think for range, X% acceleration sales that seems know but range, And you grow which businesses of what guidance to to said. in X% X% 'XX I grew in relative to in X.X% was total to faster midpoint imply growth the that XXXX, than 'XX they 'XX?

John Morikis

-- it, they'll will carry Eric. grow Well, to our have stores

of businesses, single group feel engine you fastest-growing, consumer the be, across so As they're you company, the the high Coatings know, -- and go the But a as the group, industrial we as then our probably the would in digits. have business expectations if though lower there. we second Performance

Unidentified Analyst

share? Performance like, of out both stand Is Which the those? And Is that Is it would in growth to most Coatings. market 'XX one sounds within 'XX improved relative that that from growth? and price? market for the that stores

John Morikis

certainly across be an of but market important share all those opportunities levers mentioned. would all do that we you They using. growth our we're see We is that lever, believe that key

Operator

Our line with Bloomberg. is Christopher [ph] of question from the next

Unidentified Analyst

outstanding debt the Is on to question retire plan Quick year. XXXX? debt due the that's this the in

Allen Mistysyn

we retire we'll we'll term that's Yes. June, The had outstanding. in $XXX due million retire that $XXX that. million another Plus short in

Unidentified Analyst

the actual paint, technical in weather have a it's a in painting application there in XX, of precludes of in terms then, application anything at certain of you And If threshold? terms below temperature is past? that interior slowdown question; seen the and indoor

John Morikis

are themselves pushed would if be are application it No. that protected indoor, can a back, The such but projects impact, they be, only weather, environment, they due need to apply. if the apply the temperature, ambient it's Chris, typically that whatever to rain, conditions right, what might the

Operator

floor Mr. we over pass further comments. time, appears back this It like Morikis questions I'd the for concluding so additional no at any have to to

John Morikis

to years. valued to you, like a the morning this the a to contributions of our of Since taking community. I'd Sherwin-Williams XXXX, Thank the has moment of investment close Bob been over management voice Wells member team XX Jessie. by the acknowledge past

ambassador team. trusted and candor, a public has our adviser stellar his management may has members been reputation you Over for our integrity is Street Wall know a has not the that the our the tireless Bob built Bob of me community policy a both a for well. years, expertise, that and served on to company industry also champion What and company, shareholders

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Operator

Thank does for may this teleconference. your gentlemen, today's time. thank you your this and participation lines and conclude at you. disconnect Ladies you Again, we

The Sherwin-Williams Company (SHW) 31 Jan 192018 Q4 Earnings call transcript