Sherwin-Williams forecasts annual profit below estimates on soft demand
Jan 30 (Reuters) - Paint maker Sherwin-Williams (SHW.N), opens new tab on Thursday forecast current-year adjusted profit below analysts' expectations, hurt by continued demand choppiness.
"We expect demand softness to persist in several end markets well into the second half of the year, if not into 2026," said CEO Heidi Petz.
The company's shares were down 1.8% in premarket trading
Factory activity in the U.S. ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery.
The chemical industry has also been struggling with sluggish demand recovery, resulting in lower prices, particularly in Europe due to a challenging regulatory landscape which has caused firms to reassess their strategies.
However, the Ohio-based company posted an adjusted profit of $2.09 per share for the fourth quarter ended Dec. 31, beating estimates of $2.06 per share, according to data compiled by LSEG, as it benefited from higher sales at its paint stores unit.
Net sales at paint stores, the company's biggest segment, rose 3.4% to $3.04 billion during the reported period from a year ago.
The company expects full-year adjusted profit in the range of $11.65 per share to $12.05 per share, far below Wall Street expectations of $12.60 per share.
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