2001 Annual Report - Investor Relations - Sherwin Williams

Financial Highlights(thousands of dollars except per share data)2001 2000 1999Net sales $5,066,005 $5,211,624 $5,003,837Net income before impairment (1) 263,158 309,654 303,860Less: Impairment of long-lived assets, net of tax 293,628Net income 263,158 16,026 303,860Per share:Net income before impairment - diluted (1) 1.68 1.90 1.80Less: Impairment of long-lived assets, net of tax 1.80Net income - diluted 1.68 .10 1.80Net income - basic 1.69 .10 1.81Cash dividends .58 .54 .48Book value 9.66 9.22 10.25Average shares outstanding (thousands) 155,557 161,912 167,925Return on sales (1) 5.2% 5.9% 6.1%Return on net operating assets employed (ronae) (2) 27.5% 29.8% 29.8%Return on beginning shareholders’ equity (1) 17.9% 18.2% 17.7%Earnings before interest, taxes, depreciation and amortization (ebitda) (1) $ 627,174 $ 717,503 $ 707,030Free cash flow (3) $ 388,090 $ 242,442 $ 271,941Total debt to capitalization 29.3% 33.5% 30.4%Interest coverage (1) 8.8x 9.0x 9.0xCurrent ratio 1.3 1.4 1.4Total technical expenditures (4) $ 86,222 $ 83,627 $ 78,1896000500040003000322041334881Sales(millions of dollars)493450045212506620001000019951996199719981999200020012.01.51.18Net income per share - diluted (1)1.901.801.501.571.331.681.00.50.01995199619971998199920002001(1) Based on net income before the impairment of long-lived assets charge in 2000, net of tax. See Note 2, page 35.(2) Based on income before taxes, and the impairment of long-lived assets charge in 2000, divided by average net accountsreceivable, inventories, property, plant and equipment and accounts payable.(3) Net operating cash less capital expenditures and payments of cash dividends.(4) See Note 1, page 34, for a description of technical expenditures.3