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UPDATE 1-Sherwin-Williams pays $80 mln to settle U.S. labor department probe
February 21, 2013 / 2:50 AM / 5 years ago

UPDATE 1-Sherwin-Williams pays $80 mln to settle U.S. labor department probe

Feb 20 (Reuters) - Sherwin-Williams Co has reached a settlement deal with the U.S. Department of Labor related to the U.S. paint maker’s employee stock ownership plan by making a one-time payment of $80 million to the plan, the firm said on Wednesday.

The company - which markets paints including Dutch Boy, Krylon, Minwax and Water Seal as well as its namesake brand - said the payment will result in an after-tax charge to earnings of $49.2 million, or 47 cents per share, in its fourth quarter, ended Dec. 31, 2012.

“The settlement will result in payments totaling $80 million to current and former participants in the plan as well as to their beneficiaries,” the Department of Labor said in a statement issued to Reuters.

The settlement also requires Illinois-based trustee GreatBanc Trust Company to undergo an audit of its pension plan activities, the Labor Department said.

In January, the company posted a fourth-quarter profit of $1.12 per share on revenue of $2.22 billion.

Sherwin-Williams said the agreement will not have an effect on its full-year 2013 earnings forecast issued on Jan. 31, 2013.

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