CLEVELAND, April 23, 2024 /PRNewswire/ -- The Sherwin-Williams Company (NYSE:SHW) announced its financial results for the first quarter ended March 31, 2024. All comparisons are to the first quarter of the prior year, unless otherwise noted. SUMMARY Consolidated net sales decreased 1.4% in the quarter to $5.37 billion Net sales from stores in the Paint Stores Group open more than twelve calendar months were approximately flat in the quarter Diluted net income per share increased 7.1% to $1.97 per share in the quarter compared to $1.84 per share in the first quarter 2023 Adjusted diluted net income per share increased 6.4% to $2.17 per share in the quarter compared to $2.04 per share in the first quarter 2023 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 2.0% to $896.2 million, or 16.7% of net sales Reaffirming full year 2024 diluted net income per share guidance in the range of $10.05 to $10.55 per share, including acquisition-related amortization expense of $0.80 per share Reaffirming full year 2024 adjusted diluted net income per share guidance in the range of $10.85 to $11.35 per share CEO REMARKS "In what is a seasonally smaller first quarter and with continued demand choppiness in several end markets, Sherwin-Williams delivered consolidated sales within our guided range, gross margin expansion and diluted earnings per share and EBITDA growth," said President and Chief Executive Officer, Heidi G. Petz. "We also continued to execute our capital allocation strategy by investing $546 million in share repurchases and increasing our dividend 18.2% in the quarter. "Paint Stores Group sales were up slightly against a strong double-digit comparison, driven by a modest contribution from our February 1 price increase which will reach greater realization in the second quarter. Our recent growth investments helped drive above-market growth in Residential Repaint. Commercial and Protective & Marine sales also grew. New Residential sales were down as anticipated, though we are seeing momentum with our homebuilder customers. Delayed capex projects impacted Property Maintenance sales. In Consumer Brands Group, North America DIY paint demand remained soft, which was partially offset by international growth. Segment margin improved, primarily driven by higher manufacturing and distribution fixed cost absorption, lower raw material costs and improved results in Latin America and Europe. Performance Coatings Group sales were in line with expectations as demand remained variable by business and region. Sales grew in Industrial Wood and Coil. Sales were flat in Auto Refinish against a mid-teens comparison, and Packaging sales were down, as expected. General Industrial demand was soft in all regions. Segment margin improved year-over-year for the fifth consecutive quarter. In all segments, we continued to execute on our priorities which we expect will drive increasing momentum as the year progresses." FIRST QUARTER CONSOLIDATED RESULTS Three Months Ended March 31, 2024 2023 $ Change % Change Net sales $        5,367.3 $        5,442.4 $          (75.1) (1.4) % Income before income taxes $           640.0 $           614.8 $           25.2 4.1 % As a % of net sales 11.9 % 11.3 % Net income per share - diluted $             1.97 $             1.84 $           0.13 7.1 % Adjusted net income per share - diluted $             2.17 $             2.04 $           0.13 6.4 % Consolidated Net sales decreased primarily due to lower sales volumes in the Consumer Brands Group, inclusive of the impact from the divestiture of the China architectural business in the prior year, and the Performance Coatings Group in North America. Net sales in the Paint Stores Group was essentially flat in the quarter. Income before income taxes increased primarily due to benefits from moderating raw material costs, partially offset by continued investments in long-term growth strategies and digital technologies. Diluted net income per share included a charge of $0.20 per share for acquisition-related amortization expense in the first quarter of both 2024 and 2023. FIRST QUARTER SEGMENT RESULTS Paint Stores Group (PSG) Three Months Ended March 31, 2024 2023 $ Change % Change Net sales $       2,873.0 $       2,859.1 $           13.9 0.5 % Same-store sales change (1) (0.1) % 14.2 % Segment profit $          493.2 $          526.7 $          (33.5) (6.4) % Reported segment margin 17.2 % 18.4 % (1) Same-store sales represents net sales from stores open more than twelve calendar months.   Net sales in PSG increased primarily due to a modest impact from the recently announced price increase with sales volume approximately flat year-over-year. Net sales growth in the Residential Repaint, Commercial and Protective & Marine end markets was partially offset by lower Net sales in the New Residential and Property Maintenance end markets. PSG segment profit decreased primarily due to continued investments in long-term growth strategies and higher employee-related costs, partially offset by moderating raw material costs. Consumer Brands Group (CBG) Three Months Ended March 31, 2024 2023 $ Change % Change Net sales $         811.0 $         872.7 $          (61.7) (7.1) % Segment profit $         153.4 $           93.8 $           59.6 63.5 % Reported segment margin 18.9 % 10.7 % Adjusted segment profit (1) $         169.9 $         113.8 $           56.1 49.3 % Adjusted segment margin 20.9 % 13.0 % (1) Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and restructuring costs. In CBG, Valspar acquisition-related amortization expense was $16.5 million and $19.0 million in the first quarter of 2024 and 2023, respectively, and restructuring costs were $1.0 million in the first quarter of 2023. Net sales in CBG decreased primarily due to a mid-single digit percentage sales volume decline and a 2.6% impact of divestitures in 2023. The sales volume decrease in North America was partially offset by sales volume growth in Europe as well as selling price increases in Latin America and Europe, which impacted net sales by a low-single digit percentage. CBG segment profit increased primarily due to higher fixed cost absorption in the manufacturing and distribution operations within the segment, moderating raw material costs and improved results in Latin America and Europe, partially offset by lower North America sales volume. Acquisition-related amortization expense reduced segment profit as a percent of Net sales by 200 basis points in the first quarter of 2024, compared to 220 basis points in the first quarter of 2023. Performance Coatings Group (PCG) Three Months Ended March 31, 2024 2023 $ Change % Change Net sales $       1,681.9 $       1,709.8 $          (27.9) (1.6) % Segment profit $          237.7 $          218.9 $           18.8 8.6 % Reported segment margin 14.1 % 12.8 % Adjusted segment profit (1) $          286.9 $          268.8 $           18.1 6.7 % Adjusted segment margin 17.1 % 15.7 % (1) Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and restructuring costs. In PCG, Valspar acquisition-related amortization expense was $49.2 million and $50.0 million in the first quarter of 2024 and 2023, respectively. Restructuring costs in the first quarter of 2023 were not significant. Net sales in PCG decreased primarily due to lower sales volume in North America and Latin America, partially offset by higher sales volumes in Europe, inclusive of acquisition impact, and Asia. Performance was led by the Industrial Wood and Coil businesses, offset by decreases in the General Industrial and Packaging businesses. Incremental sales from acquisitions increased Net sales by 1.3% in the quarter. PCG segment profit increased primarily as a result of moderating raw material costs, partially offset by lower sales volume in North America. Acquisition-related amortization expense reduced segment profit as a percent of Net sales by 300 basis points in the first quarter of 2024, compared to 290 basis points in the first quarter of 2023. LIQUIDITY AND CASH FLOW The Company used $58.9 million in Net operating cash during the first quarter of 2024 primarily as a result of seasonal increases in working capital requirements, partially offset by Net income. This Net operating cash usage was funded through an increase in Short-term borrowings. The Company returned cash of $728.0 million to our shareholders in the form of dividends and repurchases of 1.7 million shares of its common stock during the first quarter of 2024. At March 31, 2024, the Company had remaining authorization to purchase 37.9 million shares of its common stock through open market purchases. 2024 GUIDANCE Second Quarter Full Year 2024 2024 Net sales Flat to up low-single digit % Up low to mid-single digit % Effective tax rate Low twenty percent Diluted net income per share $10.05 - $10.55 Adjusted diluted net income per share (1) $10.85 - $11.35 (1) Excludes $0.80 per share of acquisition-related amortization expense. "We remain ...