Document 5D6xDGe4ynLa4wragjpw1O1M4
1
196 4
OUR NINETY-EIGHTH YEAR
THE SHER WIN -WILLIAMS COMPANY
--------------------------.
-- -------------- ----------- 0007-SWP-034912 1
THE SH ERWIN-WIlCl AMS COMPANY AND CONSOLIDATED SUBSIDIARIES
FINANCIAL HIGHLIGHTS August 31.1964, sod 1963
Set tales.
ran $313,311,236
1 mi 3291,531,896
Income Mon taxes on income Tim on income--United States end toreifn
J 33,619,BIT - 29,885,814
i.
J 16,552,763
14,863,074
Net income Per share of common stock. ...
Cash dividends declared:
rTWTmQ
...
Common.......................
...............
l I j
17,067,054 6.4B '
406,401 7.708,291
' 1 I
:
15,022,740 5.68
436,796 7,701,996
Working capital.......................................
116,386,560
112,026,735
Ratio cl current amts to current liabilities . . . .
4.94(01
4.87 to I
Expenditures for plant addition*
9,395,018
5,125,063
Provision Ear deproeiatioo......................................
4,082,493
3.964,817
Shareholder* equity:
Ptefeirad -- at tnrirmprion price of tlOS a shin
.......................
10,406,550 167,031,732
11,251,485 157,631,243
Outstanding shares at Angum 31:
99,110 2,572,399
107,157 2,567,332
Number a* tharehaldm at August 31:
255 6,577
276 6,286
Number ot employ-- at Augtat 31
15,497
15,115
I
0007-SWP-034913
0007-SWP-000116333
hni
LETTER TO SHAREHOLDERS
Herewith are presented the Contolideted Balance Sheet and the Caiuolidated Income and Earned Surplus Statements tjfThe Sherwin-Williams Com pany and consolidated subsidiaries for the Steal year ended Au |u h 31.1964.
The consolidated earnings amounted to 317,06".OS-t at compared with S15.022.740 far 1963. After deducting $4b.40t far Preferred Dividends, the earnings for 1964 are equivalent to 36.48 per than- on the 2-5',2.399 shares of Common Stock outviendin* at August 31, at compared with 33.68 last year, an increase of 14.1%.
Consolidated net sales amounted to 3313,311.226. That it the hifhest tales total in the Compaoy't histary and is 7.43% over the previoue high of last year.
The generally high level of the economy exerted a constructive influence on tales, at did favorable weather on the Trade Sales sector. The fain in talcs was, in the main, consistent throughout all divisions of the business.
The increase in final operating margin* resulted from the combination of added talcs volume and effective cost control in both manidhcturing and distribution.
The pan year witnamed continuing changes and expansion by the Company in marketing and distribution. Further concentration was placed on take to selected mam marketing outlets and, additionally, a number of contracts wait negotiated far the operation of leased paint departments in established outlets. These mown were taken to ateure our products being featured and sold where retail traffic is heavy. At the end of the fiscal year the Company and it* consoiidatod mbsidiaries were operating 1.934 branches, including the leased paint departments istated to above. Further growth in this area is anddpamd during the new year.
Among other factors contributing to increased sales during the year was intennhed advtrthtag and promotional effert, particularly through the tdevision medium, featuring Super Kern-Tone latex watt paint. Kern-do enamel, SWF exterior oil base palm and A-100 latex exterior paint. Special emphasis was also given to promotion directed at pcofastonal painting con tractors and arektMCtt.
To capture an overeating share of the Trade Sake market, we developed and arc cuitendy introducing the "Exeetto'* line. This line is designed to attract thees "budget-minded" consumers who hcritate to poichaet the highest quglfay pekue traditionally tteorieted with the Sherwin-Williams rrarts mask "Excciio" peina will be marketed uniter the Sherwin-Williams name but not under the `CatiMlihEank" mde-mark. That tndc-mark will continue so be reserved to identify the higfacM quality pains available, whik "ExeeUef will identity the "next-to-the-highest-quality" paints. All
0007-SWP-034914
0007-SWP-000116334
domestic subndlariet are alio ukine this dual route to the Trade Sale* mar ket. using their established 'race-marks and companv name* in a similar pattern. Thi* broadened auproach 01 two price leveli is in keeping with today * merehandisinf trend*.
An established paint manufacturer ut Peru was licensed to produce our product* in that Latin American country. The Puerto Rican company came into production. Sherwin-Williams (Europe) S.A.. baaed at Antwerp, con cluded it* tint tear of operation and achieved tadafactory progress. The ext sruion of international market* will receive increasing attention in the coining year.
Research and development continued to be strongly emphasised. Outlavs in this area nee 8.7J over the previous year. In addition to the "Eaeello" line, new products to meet the sneeiaiiaed needs of professional painting contractors and architects also were developed and improvements made in existing products. In Chemical Coolings, farther mashed progress was made in materials for pre-finishing natural and compounded wood, aluminum and steei. end newly-developed "Therm-O-CM'* insulating varnishes farther enhanced our paeitkm in the ciecirkal and electronics held. The "Verntyl" line of flushed colors maikcted by the Pigment, Color and Chemical Depart ment met with immediate acceptance in the printing ink industry.
Expenditures far plant in the past year were $9,395,01$ wish a major portion being invested primarily n> improve cost cfllckncy and cutcomar service. A collateral aim and benefit was the addition of needed manufac turing capacity. Tbo largo pains consolidarion project at Chicago is prac tically completed and rfllrirnries in operation are already apparent Similar but smaller program* were completed at Cleveland, Detroit Oakland and Garland. A new warehouse at Oakland became fully operative in the summer. Land has been pntrhamd at Newark far an addloonal facility to relieve present physical limitations as that location. The ealaifeutn* of the Fhthaiocyaaina Blue Plant at Chicago la well under way. Thii wfll increase the usable capacity of this unit subRandaBy and d* advantages will begin to be fait in the new heal year.
Principal plant expenditures in the coming year will continue n ha directed toward modemssaijan and coat eflcieadea fas manufacturing.
Once again the Management expretws in thanks to the mdse organisa tion far the loyal eflart and cathutiaM that have mada efain year's resulu
I
CMhaea / rihr Bm4
Cleveland, Ohio October 22,1994
Arndmt .. Hmi
0007-SWP-034915
0007-SWP-000116335
THE SHERWIN-WILLIAMS COMPANY AND (
Consolidated Balance Sheets, August 3*
Amts
Curmt Attth
Caih 0. S. Trea*ury bill*--u c m Trad* account* receivable, la* allow.
ancctfordoubtful account* ofSA14,652 in 1964 and S6tl.61t in 1963. . Inventorie*--principally at lower of coat (average or 6nt-in, Snt-out method) or market:
Finiahed merchandiae . . . Work in pence**, raw material*, and
aupplie*......................................
To t al CuaaaxT Amaia
/ wihanif and 06Lr Aatk
Common dun* ofTRa Sh*rwio>WUiiam*
Company ofCanada, Limited--
at c m--Note A
...................
Receivable*, advance*, and mi*ccUandmt* other amen. .
Pnftrfy, ffad end JSpqpmeaf -- on the baai* of CM fanH........................................... tatUiiy Mirhinwy and equipment............. Lea allowanca far depredation. . .
Dtfnrti Otmrpt Adverddng nochand mppUm ... Prepaid manure and other Iteca*. .
' ' ' ..............................................
196/ I9U
S 20.482,061 *.359,337
5 22,416,518 10.169,059
l J4.007.117
32,906,090
S 56.832.031
24.823,721 t 11,655.752 1145,904,347
S 50.947,-34
25,166,935 I 74,814469 8141,006436
I S *,182.766
1493,537 5 5,476403
8 4,182.766
1.123.180 8 3,305.946
1 2,458,8*9 30485,796
' 73,654,632 49.749459
8 56449,660
3 1.673427 1,654,138
I 3427.965
8210,958403
8 2,138,422 29,474.023 67,024,780 47,044,069
8 51.593.156
8 1.493.941 1,811,040
8 3,304,981
8201410.419
t if
0007--SWP-034916
1
0007-SWP-000116336
vtPANY AND CONSOLIDATED SUBSIDIARIES
e Sheoti, August 31,1964, and 1963
Liabilities, Capital Stock, and Surplus
------ :--i
l>U 1i
7PU
Current LitUihn
is
Trade accounts payable
S 5,805.960
S 7,6:3.073
59 Payroll*, compensation, and ocher
accruals.......................
11,013,130
9,740,135
>0
Dividend payable on frtfuitd Stock .
99,110
100,282
Deposits--employee* and ofliecn
047,243
[.031,014
Taxes, other than raxes on income
1,790.093
t,890,048
>4
Taxes on income .
..
9.953.543
8.537.049
55
To t a l Qmaairr LtABtuna*
$ 29,517,707 - $ 28,9*9,601
59
56
For deferred federal taxes on income
I 2,671,100
o 2,or,ooo
For pensions and other in
1,331,114 S 4,002414
1,311,090 0 3,348,090
56 Cmpiitl jad end Seerptut
Capital nack: 50 Preferred--authorised 395,500 shaiaa, 16 par vain* 0100 par share:
Cumubdve Preferred 4% series (4,950 fears* rsrlssmahls snnually at >105 a share):
---- in 1984 and 107,157 dam in 1M3 ...
S 9,911,000
8 10,715,700
airtboriaed 5,000,000 fear**, par value II2J0 par chare--Note B:
:6 Owwanriint--2472499 shares in
1964 and 2J67J32 shares in
1963-statsd capital
33.580J44
33,172,851
*1
Earned surplus......................................
133,946,730
124,994,377
10
0177.431482
8160482,728
iT
8210,950483
>201410.419
19
See notes u financial sun
ho
0007-SWP-034917
0007-SWP-000116337
THE SHERWIN-WILLIAMS COMPANY
ramMulMI
EXECUTIVE OFFICES 101 Pe o imc t Av e.'iit , N. VV.. Cl x v il a n p . Oh io -M-115
Ancon
E. C. Ba l d w in
J. X. Bal -man 5. B. Coousec E. A. Da h h u C. S. Ea t o n CtOWI GCNO W. X. Ha mm*
R.. F. Hs n s m
H. D. Lu t M J. S. Puicorr A. W. Sk i/DEL W. VI. St v as t B. M. Van Cl s v s C. M. Wh it s J. D. Wn io h t
Offian a . W. St il u s l . . .
E. C Ba l o w m . S. B. Coocaos. . It t. Hons . . R. H. He u . . . . H.D.Lwu. . . J. S. Psncorr &. H. Va n Cl s v s . W.C.Fws . . V. A. Ho l l b . . .
CAo k mn / tit imi miChitffiwntfir# OJkm
...
toaJaU
. . Cue totidat
. . Via tondr*
..................Vinton**
Fin toadm md Trmtma
(7
Via tondml
. Sammy
Aautaut Strmmy
Trmmftr Agnk Tn s Cl ev el an d Tr u s t Co mpan y , Cleveland, Ohio Ba n s s mTs u s t Co mpan y , New York, N.Y.
Kigutmn Ce n t b a l Na t io n a l Ba n s or Cl e v e l a n d ,
Ctawbad, Ohio
Mo o b a n Cv a e a n t v Tk l t t Co mp an y of Ne w Yo s k , New York. N.Y.
0007-SW-034918
0007-SWP-000116338
PRINCIPAL PRODUCTS Pum, Ek a k iu . Va a x b mu , Lac ^x u . St a im. Zotc PBMXyn. Dtv Co l o r *. LrmotQM. Or cAtc CtnwcAH. Co m. Tar a.v o Px t r o u l t i Nt r a mib u t u , Bar iu m Cmmc a u . Lh u Ou_ Mit a l Caj o , imenaats, Bavimi, Roun* ak Ot mu Pa w t ik o AeOMOMti.
DOMESTIC PLANTS Sou* Br o o k . N'c w Jimb v Ck k a o o , Iu u h > (t w o ) Cu v il ams .Oh j o (t w o ) Comrvnx*, Ka ma* Day t o m, One Dr MLIK. Owo Dtraorr. MonoAM Ea *t Nr w a r k . N'w Jr r my Ca u ma Timi Cniom, Ntwjtanv Hw a m, Oh m Lot Amo r l m, CttMMt New ar k , Niwjuat Oa il a M) Ca u iq in u PmWMH. PtaMtVLVAMA
f RaMWA[ ruIRHRfA
rORXIGN PLANTS Bav ah o h , Pnim In Irniot Ann. Amu r w a StAVtiracair. Cai a MaaeoCRV.Mnes MoKiut, Caaab a (mh I ItM MlU| C/iiAM Sao Pa u l s , SsAn. To r o n t o , Ca ma s a Vamo o u v r e , Ca ma s a Wounaao, Camas a
RESEARCH CENTER Cibc ao s . iLuaoa
PRINT1N0 DIVISION Noam Ouoras, Omo
0007-SHP-034919
0007-SWP-000116339
CONSOLIDATED SLRSIDIARIES
Ac h s Q:a u t y Pain t *, In c . Dttt+i. .tfiMifn
Th * Cu . Gn ah ah Pa r t A U u.Lr*ni Co u mm tlVAtu. A'am
ClMPAYM $MHmAVltUAMt. S.A o ( C V \Us h * Cili. .tlnw
Donut Pumm In c . 0>tMrr. 0*i
Th * L'* B*"Tn m* f<w O^tw, *)*
Jq mn Lc c m k Co n pas iv . l.\cimroArto Au j n W^u . trmsjhmm.......................
IV. W, Lam-u n c i I Ciw my AMWrfO, fnmgirma
Tm Mao t in -Sc n o c t i Co mpan y Ckmagt, Blnmi
Ko mi Pa m* Ptoocci*, In c . Aw .UWAfni
Hit h u t Omp a x t ** .Vmt, Anr Jmn
Riimu t t Ch mt iCa n a d a* Lontno ftwWM. CnWi....................................................
R. C. Van Ma w In c . Art MmA .Vor W
SmAwm-lVimua (Ector*) Socan An o n y m* .lank Btignm
Th * Smw w imAViu ia mi Co. or Ph o t o Ric o . lire
Sm Jam
Kin
Tn Sn b*w w AViu mw .Co . (Wor In w d I Lt b. Kiafmm, Jammn
CNCONSOLIDATED SUBSIDIARIES
fanMcWfeUM AMMUA, iNMYTMAt V Co'MDCM.S.A.
i--a Awn, Argmlm
Saanrur-WiuiAta n Bd aml S/A Ton** t Vann Sm Kmk, Sn&l
TnSwmwwWiuiAMCoMrAirv orCan ad a, Lu mt *d Mn mA CmaJa
Tn Can ad a Pa in t Con an y lum* .IfrtQW. CooM*
Tm Ma mb i'Sw w b * Co mpan y Una .Umknt, AW
Tm* Ww n w Pa in t A Cu m Co mpan y , Imr u Camit
Tm Lamm Btorm* Co mpan v , Un h id rwAM*
Tn L Ha mm Co mpan y Lmmi*b ^ Tmw CmW......................
Tm Cad *** Wn r i Ls a* Co mpan y or Can ad a I mo m (MB* own*--u n c o h mo u d at ib )
Pwi*
0007-STO-034920
0007-SWP-000116340
THE SHE0WIN-W1UIAMS COMPANY OF CANAOA, UMITCO ANO SUOSIOIAOIES
CONSOLIDATED IAIANCI SHEETS, AUGUST 31. 1164, AND IMS ((iprtliN in Ctnsditn Oalltn)
CMNiaN Cub
TnO* amuiia moimMo. loa allowoncn hr 4ooMul tcsauna f 1140,0*4 la 17*4 mat 7)47-200 a 1741
IwonioriM--priacipiUr u luaor of coot (avtrift or Ontua. Iw w aoHwO) or airtti: ' rinihri nnrrtr-1lin Work n prison, raw maaiioh, saO Mfftioi .
/nintan mtd Odm Atm* Immmtm ia timmi sanpiar 1 !! --m It iMm umi
Th u OnaiHt Mm
fttpmtj, Hmt, nt tfmfmm
UaO.
....
Mhn SfirEI--p Mi oquipnn 1 -- tMaincnt hr Ooproduha
... ...
CSfErrWOarju
A4wM|M|AllliN^fts
..................................
htp^taMMiaiiteriMi....................
fiftftf f*ml n/ Tir^fi
Cwww tiiWWia Tih Ic mmih ih ptyaMt.......................................................
AsainO --M.Hh*u--ul--a........................
TiMMiaiMMriaiMt............................................
CtfAft>| M m! Jwrptm
Torn. Oman* Th h iih
Cipinl mKks PnOmiO tou 7%turnMHm, pm nMo UMpAm;
OwMStaa^SMilllMi......................................
Cam dux* aa gar o*fen> AaAali^21Ufll Amb
0----^ IHiTW A--.....................................
t v p 4.344.22*
mi I 411.241
4.4IIJ9S
s xrsim U14.T40
< 7,307,727 IU.Uf.TS0
i mm 12170*
I J21T0S
S 1774.MS 2.3*041*
*4.117.701 U4*1
-Fo mm 71,007 1 2TM0T
> OMff OEMS 7,142.750 1.10*240
1 10*1233
0 021*11 4,1*SJ37 I.H1.IH 1171111
114(1111
t U2J71 121.510
1 30S.021 JJKUATW
t 170*7 70*3
1 2*4.430
t,*nm
i imt.sot 1,000)1 100,401 <IUH
1 XSIOM
$ 1711.7*7 TOUTS 1*1*71 4*5.723
*074,710
1 X400000
1 X440000
224,710 11.0UIM 111*11*4*
ISliSaS
224,730
11.447.03* >111317*4 117jU7j3*
to opmUn M Mi fm HI pMMA Capon** nmno Mr Mi aroam Aopiasll, IMVkmkooiiooiariM m mhm uUiOMoMfoM
r^tu
0007-SWP- 034921
0007-SWP-000116341
THl SHERWIN-WILLIAMS COMPANY OP CANADA. LIMITED AND SUBSIDIARIES
STATEMENTS OP CONSOLIDATED INCOME AND EARNEO SURPLUS Ytart Ended Aufust 11 1964, end 1961 a - Ctrsdiin Ooltsw
Net aha Otvtdaada ncaivad
(rirrmt
CaaiafpnducvaM TiFtf iinril ind adiaiaianaiin ntirm Alternant paid a rand aaplaiaat Sam
Lapailna
Prai inan lar dapmiariaa iaeNdad tdtrt mmmt m IHl'TI nltM a^ DTV4SI la IMS
antrd SurpUt
ha da par.
Cadi dMdmdi Eariarad:
Putmad--S7.00 par dnm.
-11.381
(IMS--1180)
Bataan at aad at pan JCan artaaaatal aaanana ippaan aa da Bataan daat
199*
n/m J 51.11* S3S.JS3JIO
numii I0.I33.K3
MUM us.an PS.048 ..... J*.4* UMU.M) I 1.1*4.92* ISOAIM UJILBf
199$
IU.9IP.IJI *1*000 11.4ft
S3J,03S,t26
120,400.9*3 I0.JJ9.J49
2S".OOJ l",J ttt.SU IT.1YJ SJI.SSS.7N
t 1.SOI,Ml 6*1.00"
^tUM
Stl.44P.0M tAtf.ur
S12.4*M*I
S MUM MUM
S SM.1M Stl.fM.iSS
iu.0H.it* IMAM
SI 1,91S.PM
t MUM U4.7S0
i tano tll.4af.AM
AUOITORS' REPORT
ftp--Nr IS. 1PM
0007-SWP-034922
0007-SWP-000116342
