Sherwin-Williams Co (SHW) CEO John Morikis on Q2 2022 Results - Earnings Call Transcript

Sherwin-Williams Co (NYSE:SHW) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET

Company Participants

James Jaye - SVP, IR & Corporate Communications

John Morikis - Chairman & CEO

Allen Mistysyn - SVP, Finance & CFO

Conference Call Participants

Ghansham Panjabi - Robert W. Baird & Co.

Christopher Parkinson - Mizuho Securities

Gregory Melich - Evercore ISI

Vincent Andrews - Morgan Stanley

Adam Baumgarten - Zelman & Associates

Stephen Byrne - Bank of America Merrill Lynch

Garik Shmois - Loop Capital Markets

John Roberts - Crédit Suisse

Kevin McCarthy - Vertical Research Partners

Adrien Tamagno - Berenberg

Truman Patterson - Wolfe Research

Charles Cerankosky - Northcoast Research Partners

Kenneth Zener - KeyBanc Capital Markets

Jeffrey Zekauskas - JPMorgan Chase & Co.

David Begleiter - Deutsche Bank

Eric Bosshard - Cleveland Research Company

Michael Sison - Wells Fargo Securities

Michael Leithead - Barclays Bank

Arun Viswanathan - RBC Capital Markets

Joshua Spector - UBS

Operator

Good morning. Thank you for joining The Sherwin-Williams Company's review of second quarter 2022 results and our outlook for the third 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 2 hours after this conference call concludes.

This conference call will include certain forward-looking statements as defined under U.S. 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 the session to questions.

I will now turn the call over to Jim Jaye.

James Jaye

Thank you and good morning to everyone. Our second quarter results came in below our expectations and conclude what we knew would be a challenging first half to the year. On the top line, the quarter was characterized by strong demand in pro architectural and North American industrial end markets, partially offset by softness in the North American DIY channel, which we first described at our Investor Day on June 8; and tight supply of certain resins, particularly alkyd resins, which impacted our North American nonpaint sales, namely aerosols and stains.