AXTA - Sherwin-Williams lowers Q3 sales guidance citing raw material inflation

Sherwin-Williams (NYSE:SHW) lowers its Q3 21 guidance to "up or down by a low-single digit percentage over third quarter 2020" from up a mid-to-high single digit percentage. Raw material availability negatively affected Sherwin-Williams sales by about 3.5% in Q2, and executives had previously expected the supply issues to improve. "However, persistent and industry-wide raw material availability issues have not improved as anticipated, impacting our ability to fully meet the strong demand," commented CEO John G. Morikis, as the problem is expected to be even worse and negatively impact Q3 by "a high-single digit percentage." The company believes it will be able to pass on higherraw material, labor, and transportation costs. Sherwin-Williams intends to implement pricing actions beginning with a 4% surcharge in the Americas effective September 20. FY 21 revenue and EPS guidance remains unchanged. Shares are down 1.10% pre-market, while peers PPG Industries (NYSE:PPG), Axalta Coating (NYSE:AXTA), Ferro Corporation (NYSE:FOE), H.B. Fuller

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Sherwin-Williams lowers Q3 sales guidance citing raw material inflation