2001 Annual Report - Investor Relations - Sherwin Williams

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JocelioVerissimo SilvaProduction ChiefSherwin-Williams do BrasilOur International Divisionis strengthened by a veryloyal, dedicatedworkforce of morethan 2,100 employees.
International Coatings segmentShared domestic technologies – combined withsignificant manufacturing capabilities, expanded distributionchannels and a growing presence in the markets weserve – fuels optimism in our International Coatings Segment.While our financial performance was hurt by unfavorable currencyexchange rates and weak economic conditions in South America,our business is fundamentally sound and poised for growth.INTERNATIONAL COATINGS6% of Net External SalesThe International Coatings Segment distributes Sherwin-Williams brand products and products marketed underwell-recognized regional brands in more than 20 countries.We operate through wholly-owned subsidiaries, joint ventures,licensing agreements and independent distributors,along with 52 company-operated stores in Chile and Brazil.CHILE – In Chile, we provide coatings for virtually allretail and wholesale applications. These include Architectural,Industrial, Marine, Chemical Coatings and Aerosols,where we are the market leader with our Marson brand.We have increased market share and market penetrationin each of these areas and are confident of future growth.We will continue to open company stores in support of allthese markets. Sales into Industrial and Marine markets,such as fishing and copper mining, benefited fromthe introduction of new coatings technologies –transferred from domestic operations. Furtherexpansion in Industrial will occur with theintroduction of new products for theindustrial flooring market from thePaint Store Segment’s General Polymersbusiness unit.ARGENTINA – The additionof two new major dealerchains and expansion ofour home center businesswere bright spots inan otherwise depressedmarket hit by an unemploymentrate of 22%, afourth consecutive year of recession and, in 2002, a significantcurrency devaluation. While we anticipate gallon volume tocontinue shrinking, we expect to gain market share. And, thestrong distribution we enjoy with the dealer chains will continueto present future growth and sales opportunities.BRAZIL – This is our largest subsidiary. Our strong portfolioof brands positions us well in every coatings category we serve.We are the market leader in Aerosols with our Colorgin brand,which is distributed through home centers, mass retailers andhardware stores. Our Sumaré brand has helped us achieve marketleadership in Industrial and Marine, which is sold directlyto customers as well as through our company stores. We willcontinue to support this distribution method with the openingof new company stores. Many of the Sumaré product technologiesin use were developed from the domestic market. Wealso manufacture and distribute products for the powder coatingsand chemical coatings markets. In our ArchitecturalCoatings business, numerous new products were successfullyintroduced for hospitals and kitchens and baths, along with texturepaints and otherspecialty coatings. Theseproducts are primarilysold through home centers,independent dealersand hardware stores.UNITED KINGDOM –The launch of our Tri-Flow Metal Care enamel paint was verysuccessful. Continuedgrowth of this line isexpected in Europe. RonsealLimited willcontinue its focus onupgrading our interiorWoodcare line to increase awareness and preference in all sectors.The introduction by Ronseal Limited of exterior stains inthe Gardencare line helped propel significant gallon salesincreases for the year and will provide solid growth opportunitiesamong existing distribution and major home centers.15
Page 1: The Sherwin-Williams Company2001 AN
Page 4 and 5: SUMMARY OF Operating SegmentsPaint
Page 6 and 7: Christopher M. ConnorChairman and C
Page 8 and 9: letter to shareholdersnegative year
Page 10 and 11: Alfred LewisCity Manager, Paint Sto
Page 12 and 13: Fred KoneckiCase PackerChicago, Ill
Page 15: Automotive finishes segmentThe Sher
Page 19 and 20: TITUSVILLE,FLA. -➛A shortage of A
Page 21 and 22: SUBSIDIARIESForeignCoatings S.r.L.C
Page 23 and 24: Management’s Discussion and Analy
Page 25 and 26: MANAGEMENT’S DISCUSSION AND ANALY
Page 31 and 32: STATEMENTS OF CONSOLIDATED INCOME(T
Page 33 and 34: STATEMENTS OF CONSOLIDATED CASH FLO
Page 35 and 36: NOTES TO CONSOLIDATED FINANCIAL STA
Page 49 and 50: Directors, Officers, Operating Pres

2001 Annual Report - Investor Relations - Sherwin Williams

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