Sherwin-Williams Company (SHW) has reported a 2.53 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $203.03 million, or $2.15 a share in the quarter, compared with $198.02 million, or $2.11 a share for the same period last year.

Revenue during the quarter grew 6.83 percent to $2,782.59 million from $2,604.60 million in the previous year period. Gross margin for the quarter contracted 87 basis points over the previous year period to 49.90 percent. Total expenses were 87.73 percent of quarterly revenues, down from 87.79 percent for the same period last year. This has led to an improvement of 7 basis points in operating margin to 12.27 percent.

Operating income for the quarter was $341.50 million, compared with $317.91 million in the previous year period.

Commenting on the financial results, John G. Morikis, chairman, president and chief executive officer, said, "It is gratifying to report another year of record performances in sales, net income, earnings per share, and earnings before interest, taxes, depreciation and amortization. "We now expect a divestiture will be required to gain approval from the FTC to complete the acquisition of Valspar. We are moving forward on a divestiture that we believe will allow us to gain approval from the FTC. The expected divestiture has revenues below the $650 million threshold, and we expect to negotiate the divestiture and complete the Valspar transaction at $113 per common share within 90 days. "In the first quarter of 2017, we anticipate our consolidated net sales will increase a mid to high single digit percentage compared to the first quarter of 2016. At that anticipated sales level, we estimate diluted net income per common share in the first quarter of 2017 will be in the range of $1.45 to $1.55 per share compared to $1.75 per share earned in the first quarter of 2016, restated for the early adoption of a new accounting standard (ASU 2016-09)."

For financial year 2017, Sherwin-Williams Company forecasts diluted earnings per share to be in the range of $13 to $13.20 and forecasts diluted earnings per share to be in the range of $13.60 to $13.80 on adjusted basis.

For the first-quarter 2017, Sherwin-Williams Company forecasts diluted earnings per share to be in the range of $1.45 to $1.55. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $2.03 to $2.13.