2001 Annual Report - Investor Relations - Sherwin Williams

FINANCIAL SUMMARY(Millions of Dollars Except Per Share Data)2001 2000 1999 1998 1997OperationsNet sales . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,066 $ 5,212 $ 5,004 $ 4,934 $ 4,881Cost of goods sold . . . . . . . . . . . . . . . . . . . 2,846 2,904 2,755 2,804 2,784Selling and administrative expenses . . . . . . . 1,730 1,740 1,673 1,598 1,574Impairment of long-lived assets . . . . . . . . . 352Interest expense . . . . . . . . . . . . . . . . . . . . . 55 62 61 72 81Income before income taxes . . . . . . . . . . . . 424 143 490 440 427Net income . . . . . . . . . . . . . . . . . . . . . . . . 263 16 304 273 261Net income before impairment (A) . . . . . . . 263 310 304 273 261Financial PositionInventories . . . . . . . . . . . . . . . . . . . . . . . . . $ 633 $ 704 $ 703 $ 683 $ 722Accounts receivable - net . . . . . . . . . . . . . . 523 594 606 605 546Working capital . . . . . . . . . . . . . . . . . . . . . 366 436 437 458 417Property, plant and equipment - net . . . . . . 673 722 712 719 692Total assets . . . . . . . . . . . . . . . . . . . . . . . . 3,628 3,751 4,033 4,051 4,036Long-term debt . . . . . . . . . . . . . . . . . . . . . 504 621 622 730 844Total debt . . . . . . . . . . . . . . . . . . . . . . . . . 615 740 742 848 1,005Shareholders’ equity . . . . . . . . . . . . . . . . . . 1,488 1,472 1,699 1,716 1,592Per Share InformationAverage shares outstanding (000’s) . . . . . . . 155,557 161,912 167,925 172,162 172,107Book value . . . . . . . . . . . . . . . . . . . . . . . . $ 9.66 $ 9.22 $ 10.25 $ 10.03 $ 9.21Net income before impairment - diluted (A) 1.68 1.90 1.80 1.57 1.50Net income - diluted . . . . . . . . . . . . . . . . . 1.68 .10 1.80 1.57 1.50Net income - basic . . . . . . . . . . . . . . . . . . . 1.69 .10 1.81 1.58 1.51Cash dividends . . . . . . . . . . . . . . . . . . . . . .58 .54 .48 .45 .40Financial RatiosReturn on sales (A) . . . . . . . . . . . . . . . . . . 5.2% 5.9% 6.1% 5.5% 5.3%Asset turnover (A) . . . . . . . . . . . . . . . . . . . 1.4x 1.3x 1.2x 1.2x 1.2xReturn on assets (A) . . . . . . . . . . . . . . . . . . 7.3% 7.5% 7.5% 6.7% 6.5%Return on equity (A)(B) . . . . . . . . . . . . . . . 17.9% 18.2% 17.7% 17.1% 18.6%Dividend payout ratio (A) . . . . . . . . . . . . . 34.6% 28.5% 26.6% 28.5% 26.5%Total debt to capitalization . . . . . . . . . . . . . 29.3% 33.5% 30.4% 33.1% 38.7%Current ratio . . . . . . . . . . . . . . . . . . . . . . . 1.3 1.4 1.4 1.4 1.4Times interest earned (C) . . . . . . . . . . . . . . 8.8x 9.0x 9.0x 7.1x 6.3xWorking capital to sales . . . . . . . . . . . . . . . 7.2% 8.4% 8.7% 9.3% 8.5%Effective income tax rate (A) . . . . . . . . . . . 38.0% 37.5% 38.0% 38.0% 39.0%GeneralCapital expenditures . . . . . . . . . . . . . . . . . $ 83 $ 133 $ 134 $ 146 $ 164Total technical expenditures (D) . . . . . . . . . 86 84 78 73 63Advertising expenditures . . . . . . . . . . . . . . 236 276 265 283 296Repairs and maintenance . . . . . . . . . . . . . . 48 48 46 45 45Depreciation . . . . . . . . . . . . . . . . . . . . . . . 109 109 105 98 90Amortization of intangible assets . . . . . . . . 39 51 50 50 49Shareholders of record . . . . . . . . . . . . . . . . 10,281 10,813 11,475 11,929 11,964Number of employees . . . . . . . . . . . . . . . . 25,789 26,095 25,697 24,822 24,964Sales per employee (000’s) . . . . . . . . . . . . . $ 196 $ 200 $ 195 $ 199 $ 196Sales per dollar of assets . . . . . . . . . . . . . . . 1.40 1.39 1.24 1.22 1.21(A) Based on net income before the impairment of long-lived assets charge in 2000, net of tax. See Note 2, page 35.(B) Based on shareholders’ equity at beginning of year and net income before impairment.(C) Ratio of income before income taxes excluding the charge for impairment in 2000 and interest expense to interest expense.(D) See Note 1, page 34, for a description of technical expenditures.20