Our Global Footprint

The largest coatings manufacturer in the United States and third-largest worldwide As a global leader in the development, manufacture and sale of paint, coatings and related products, Sherwin-Williams has an extensive retail presence throughout the Americas, and growing service capabilities in Europe and Asia/Pacific. The Paint Stores Group has 4,086 company-operated specialty paint stores in the United States, Canada and the Caribbean. More than 90 percent of the U.S. population lives within a 50-mile radius of a Sherwin-Williams store. The Consumer Group manages a highly efficient global supply chain consisting of 66 manufacturing plants and 37 distribution centers. The Global Finishes Group sells to a growing customer base in nearly 100 countries around the world and has 296 company-operated automotive, protective, marine and product flnishes branches. The Latin America Coatings Group operates 291 stores primarily located in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay, and sells through more than 500 dedicated dealer outlets.

Global Footprint

2015 At A Glance

Paint Stores Group 63.6% of total sales

Sherwin-Williams Paint Stores are the exclusive outlets for Sherwin-Williams® branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean.

Latin America Coatings Group 5.6% of total sales

Our Latin America Coatings Group manufactures and sells a wide range of architectural paints, industrial coatings and related products throughout Latin America.

Consumer Group 13.9% of total sales

Our Consumer Group sells one of the industry’s strongest portfolios of branded and private-label products through retailers across North America and in parts of Europe and Latin America, and also operates a highly effective global supply chain for paint, coatings and related products.

Global Finishes Group 16.9% of total sales

The Global Finishes Group manufactures and sells a wide range of OEM product finishes, protective and marine coatings, and automotive finishes to a growing customer base in nearly 100 countries.

Financial Highlights

Financial Highlights 2015 2014 2013
Net Sales (Thousands) $11,339,304 $11,129,533 $10,185,532
Net Income (Thousands) $1,053,849 $865,887 $752,561
Per common share:
Net Income - Diluted $11.16 $8.78 $7.26
Net Income - Basic $11.38 $8.95 $7.41
Cash Dividends $2.68 $2.22 $2.00
Average common shares outstanding (thousands) 92,197 $96,190 100,898
Return on sales 9.3% 7.8% 7.4%
Return on assets 18.2% 15.2% 11.8%
Return on beginning shareholders' equity 105.8% 48.8% 42.0%
Total debt to capitalization 69.3% 64.4% 49.2%
Interest coverage 26.1x 20.6x 18.3x

Financial Summary

Operations 2015 2014 2013 2012 2011
Net Sales $11,339 $11,130 $10,186 $9,534 $8,766
Cost of goods sold 5,780 5,965 5,596 5,328 5,021
Selling, general and administrative expenses 3,914 3,823 3,468 3,260 2,961
Impairments and dissolution 4 5
Interest expense 62 64 63 43 42
Income before income taxes 1,549 1,258 1,086 907 742
Net Income 1,054 866 753 631 422
Per Common Share Information
Average shares outstanding (thousands) 92,197 96,190 100,898 101,715 103,471
Book value $9.41 $10.52 $17.72 $17.35 $14.61
Net income - Diluted 11.16 8.78 7.26 6.02 4.14
Net income - Basic 11.38 8.95 7.41 6.15 4.22
Cash dividends 2.68 2.20 2.00 1.56 1.46

Section Achievements

Paint Stores Group Achievements

  • The Paint Stores Group opened 83 net new stores in 2015, bringing the total number of Sherwin-Williams stores in the U.S., Canada and the Caribbean to 4,086.
  • Paint Stores Group launched 20 new products, including SuperDeck® comprehensive deck care finishing system featuring premium Duckback ®technology. The ColorSnap® integratedcolor selection system was also introduced during the year. The Group announced Paint ShieldTM, the first EPA-registered microbicidal paint, which goes on sale in February 2016.

Latin America Coatings Achievements

  • Latin America Coatings Group opened 15 net new stores in the region in 2015, up from an annual average of three new stores in recent years.
  • Sales in gallons from the Dedicated Dealer program grew 17.1 percent, as the program expanded by 86 new stores in 2015. The Group now has a total of 866 dedicated Sherwin-Williams outlets in Latin America.
  • The Group debuted two new product lines in 2015 – Ultra Protección light industrial paint and Pro Constructor interior flat latex paint – which will streamline ordering and inventory management, and provide global customers with consistent product performance and application.

Section Achievements Part 2

Consumer Group Achievements

  • The Consumer Group launched the HGTV HOME® by Sherwin-Williams brand paint program in 1,760 Lowe’s stores in the U.S.
  • To date, 29 of the Company’s U.S. sites have earned Star recognition in OSHA’s Voluntary Protection Programs, more than any other U.S. paintcompany.
  • The Consumer Group participated in the launch of more than 40 new products during the year, including the breakthrough Paint Shield™, the first EPA-registered microbicidal paint; and the Pro Constructor paint line, the Group’s first Latin American global product launch.
  • The Company formed the Innovation Resource Center to accelerate the sharing of innovative technologies across all Sherwin-Williams business units.

Global Finishing Group Achievements

  • The Global Finishes Group expanded its OEM capabilities and reach by opening an Asia headquarters office in Shanghai, andnew facilities in Germany, Indonesia, Mexico and Poland.
  • Sherwin-Williams received the 2015 Project-of-the-Year Award for Weapons Systems and Platforms from the U.S. Department of Defense’s Strategic Environmental Research and Development Program (SERDP) for the Company’s Chemical Agent Resistant Coatings (CARC) that are solvent-free, emit nearly zero VOCs, can be recycled and are compatible with existing CARC systems.
  • The Society for Protective Coatings presented Sherwin-Williams Protective & Marine with the prestigious George Campbell Award for the painting of Lay Dam, owned by Alabama Power Company.
  • The Global Finishes Group introduced new categories of its FASTLINE TM performance- and commercial-grade Associated Products for the automotive finishes market, including safety products, aerosol coatings andautomotive detailing products.