By Will Feuer


Sherwin-Williams Co. issued lackluster sales and earnings guidance for 2023 as the company braces for macroeconomic pressures to weigh on demand.

The maker of paint and coatings is targeting adjusted earnings of $7.95 a share to $8.65 a share for the year, below the $10.12 a share expected by Wall Street.

Sales for 2023 are expected to be flat to down by a mid-single-digit percentage. Analysts were expecting growth, according to FactSet.

In the current quarter, the company projects sales to be flat or up by a mid-single-digit percentage.

"We will not be immune from what we expect to be a very challenging demand environment in 2023," Chief Executive John Morikis said. "Visibility beyond our first half of the year is limited."

The U.S. housing market will be under substantial pressure, he said, and industrial sales in Europe have already slowed down. "The same is beginning to appear in the U.S. across several sectors," he said.

The company expects raw-material costs to fall by a low-to-mid-single digit percentage, he said, while other costs, including wages, are expected to rise by a mid-to-high single digit percentage.

Shares have slipped 9%, to $225, in premarket trading.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

01-26-23 0800ET