MOSCOW (MRC) -- Sherwin-Williams (SW) has increased its full-year 2020 earnings and sales guidance due mainly to stronger-than-expected architectural coatings demand. The company now expects full-year earnings to total USD20.96-21.46/share, compared with prior guidance of USD19.21-20.71/share, said Chemweek.
Sales are now forecast to grow by 3-5% year-on-year (YOY), compared with a prior forecast calling for a low-single-digit percentage decrease. For the third-quarter, segment results have shown a stronger trajectory than expected. “The Americas group (TAG) third quarter net sales are expected to be up a low-single-digit percentage compared to our previous guidance of flat to up a low-single-digit percentage,” SW says. “The consumer grands group (CBG) third quarter net sales are expected to be up a low-twenties percentage compared to our previous guidance of up a low-double-digit percentage. The performance coatings group (PCG) third quarter net sales are expected to be flat to down a low-single-digit percentage compared to our previous guidance of down a low-to-mid-single-digit percentage."
The outlook for full-year segment sales has also improved. CBG sales are expected to increase by a double-digit percentage for the full-year, with TAG sales expected be flat to up by a single-digit percentage, and PCG forecast to fall by a low-to-mid single-digit percentage. The forecast for full-year earnings of USD20.96-21.46/share represents a 12.5% YOY increase at the midpoint.
"Demand for architectural coatings has been stronger than expected in the third quarter, led by our DIY, residential repaint and new residential segments,” says SW chairman and CEO John Morikis. “Demand on the industrial side of our business has also improved, led by continued strength in packaging and emerging momentum in other segments, most notably in automotive refinish and industrial wood. As a result, our sales expectations for the third quarter and full year 2020 have improved." SW will report third-quarter results on 27 October.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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