* Q2 EPS $2.17 vs est $2.13
* Q2 rev $2.57 bln vs est $2.67 bln
* Sees Q3 EPS $2.05-$2.20 vs est $2.15
* Sees 2012 EPS $6.20-$6.40 vs est $6.29
* Shares down 4 percent
July 19 Sherwin-Williams Co forecast
third-quarter and full-year profit that could fall short of Wall
Street expectations, as rising costs of raw materials begin to
squeeze paint makers.
Shares of the top U.S. paint maker fell as much as 4 percent
in early trade. They are still up 84 percent since hitting a
year-low in August, as the company has so far been able to raise
prices to offset higher costs.
Earlier in the day, AkzoNobel NV, the world's
largest paint maker and owner of the Dulux brand, warned of a
tough economic environment ahead and continuing high costs for
Prices of such raw materials such as titanium dioxide and
oil-related resins and solvents are expected to increase further
this year, the Dutch firm said.
Sherwin-Williams, which markets brands such as Dutch Boy,
Krylon, Minwax and Water Seal, raised its full-year profit
forecast to between $6.20 and $6.40 per share from $5.75 to
$6.05 per share it had estimated earlier.
However, the raised full-year outlook could still miss Wall
Street expectations of $6.29 per share by as much as 9 cents.
The company's third-quarter profit forecast of $2.05 to
$2.20 per share could also miss analyst expectations by 10
Net income for the second quarter rose to $227.8 million, or
$2.17 per share, from $179.1 million, or $1.66 per share, a year
Sherwin-Williams, which caters to do-it-yourself (DIY)
customers, contractors, as well as multinational industrial
manufacturers, s aid sales rose 9.3 percent to $2.57 billion in
Analysts on average expected the company to earn $2.13 per
share on revenue of $2.67 billion, according to Thomson Reuters
Shares of the company were down 3 percent at $124.01 in late
morning trading on Thursday on the New York Stock Exchange.