Some interesting notables from Sherwin William’s (SHW) earnings call.
CFO Sean Hennessy had some of the more interesting disclosures:
* $220 million stock repurchased at an average cost of $53.69.
* Debt Expense:
Saul Ludwig – Keybanc: “I don’t understand why your interest expense, just gross interest expense that you write for the amount of debt and the rate that you pay was down in the first quarter when your debt had to be up $250 million.”
Sean Hennessy: “I think when you take a look at the interest rates we went out there with some of the liquidity instruments that we have that are at favorable LIBOR rates.”
Saul Ludwig – Keybanc: “So it was rates that did it?”
Sean Hennessy: “Yes.”
* Total debt will be in the $950 million range vs $1.35 billion currently.
International:
Analyst for Don Carson – Merrill Lynch: “A final question on the Global Group, obviously you bought Nicco Paints last year and you have commented that would be a platform for growth in India. I was wondering if you had any further developments in any of the Asian regions, coupled with your purchase in Singapore?”
Chris Connor: “A lot of work happening in our Nicco business in India. I think it is a little premature to comment on the next steps but as Sean said, we are pleased with these acquisitions and they are continuing to move in the right direction.”
Not much else. Consumer price increases go into effect in May which is why the second half of the year looks stronger than the first. The estimates given take into real pessimistic outlooks for both the residential and commercial markets for the remainder of 2008.
Lead paint received a brief discussion of current status. The only notable here is that the list is 1/5 what is was at this time last year.
Disclosure (“none” means no position):Long SHW
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