Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
1999 Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

Sherwin-Williams Takes Fourth Quarter Charge

CLEVELAND -- The Sherwin-Williams Company has announced that its 2000 year end results, to be released on February 8, 2001, will reflect a charge to operations of approximately $352 million ($294 million after-tax) or $1.80 per share for impairment of long-lived assets.

The Company expects that its 2000 diluted earnings per share from operations, excluding this charge, will meet analysts' expectations of $1.90. Cash flow will be unaffected by this accounting charge. However, earnings per share in 2001 is expected to be favorably impacted by approximately $0.05 per share.

The impairment of long-lived assets primarily involves goodwill associated with the Company's Cleaning Solutions, Thompson's, and Pratt & Lambert businesses. The balance sheet valuation prior to these adjustments reflected expectations of higher sales, operating margins and cash flows than have been achieved. This charge is pursuant to accounting standards that reduce the carrying value of certain assets to a fair value based on current management projections of future cash flows.

The Board of Directors approved management's plan to explore the sale of the Cleaning Solutions and Graphic Arts business units. The Graphic Arts assets are not considered impaired.

Christopher M. Connor, Chairman and Chief Executive Officer, said, "The charge for asset impairment for Thompson's and Pratt & Lambert does not change Sherwin-Williams' commitment to these core businesses and our expectations for future improvement. The sale of the Cleaning Solutions and Graphic Arts businesses will be explored in order to better focus our resources on our remaining businesses."

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?