The Sherwin-Williams Company (SHW) Q3 2022 Earnings Call Transcript

The Sherwin-Williams Company (NYSE:SHW) Q3 2022 Earnings Conference Call October 25, 2022 11:00 AM ET

Company Participants

Jim Jaye - Senior Vice President, Investor Relations & Corporate Communications

John Morikis - Chairman and Chief Executive Officer

Al Mistysyn - Senior Vice President, Finance & Chief Financial Officer

Conference Call Participants

Vincent Andrews - Morgan Stanley

Truman Patterson - Wolfe Research

Josh Spector - UBS

Jeff Zekauskas - JPMorgan Chase & Co.

Ghansham Panjabi - Robert W. Baird & Co.

Kevin McCarthy - Vertical Research Partners

John McNulty - BMO Capital Markets

Christopher Parkinson - Mizuho Securities

David Begleiter - Deutsche Bank

Arun Viswanathan - RBC Capital Markets

John Roberts - Credit Suisse

Mike Sison - Wells Fargo Securities

Mike Harrison - Seaport Global

Greg Melich - Evercore ISI

Adam Baumgarten - Zelman & Associates

Garik Shmois - Loop Capital Markets

Steve Byrne - Bank of America Merrill Lynch

Eric Bosshard - Cleveland Research Company

Operator

Good morning. Thank you for joining The Sherwin-Williams Company's review of third quarter 2022 results and our outlook for the fourth quarter and full year of 2022. With us on today's call are John Morikis, Chairman and CEO; Al Mistysyn, CFO; Jane Cronin, Senior Vice President, Corporate Controller; and Jim Jaye, Senior Vice President, Investor Relations and Communications.

This conference call is being webcast simultaneously in listen-only mode by Issuer Direct via the Internet at www.sherwin.com. An archived replay of this webcast will be available at www.sherwin.com, beginning approximately two hours after this conference call concludes.

This conference call will include certain forward-looking statements as defined under US federal securities laws with respect to sales, earnings and other matters. Any forward-looking statement speaks only as of the date on which such statement is made, and the company undertakes no obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise. A full declaration regarding forward-looking statements is provided in the company's earnings release transmitted earlier this morning. After the company's prepared remarks, we will open up this session to questions.

I will now turn the call over to Jim Jaye.

Jim Jaye

Thank you, and good morning to everyone. Sherwin-Williams had an excellent performance in the third quarter, including high-teens sales growth resulting in the first $6 billion sales quarter in company history; significant, sequential and year-over-year gross margin improvement, record adjusted diluted earnings per share and strong cash flow. Demand remains strong in pro-architectural and North American industrial end markets in contrast to continuing softness in Europe and China.