The Sherwin-Williams Company Reports Third Quarter 2006 Earnings Results

The Sherwin-Williams Company (NYSE:SHW) announced its financial
results for the third quarter and nine months ended September 30,
2006. Compared to the same periods in 2005, consolidated net sales
increased $140.0 million, or 7.1%, to $2.1 billion in the quarter and
$534.6 million, or 9.8%, to $6.0 billion in nine months due primarily
to strong paint sales by the Global Group and by stores open for more
than twelve calendar months in the Paint Stores Group. Consolidated
net income increased $27.5 million, or 18.1%, to $179.1 million in the
quarter and $89.3 million, or 23.0%, to $477.4 million in nine months.
As a percent to net sales, consolidated net income improved to 8.5%
from 7.7% in the quarter and to 7.9% from 7.1% in nine months due
primarily to improved profitability of operations. Diluted net income
per common share increased 21.5% in the quarter to $1.30 per share
from $1.07 per share in 2005 and 26.7% in nine months to $3.46 per
share from $2.73 per share last year.

Effective January 1, 2006, the Company changed its reportable
operating segments based on changes in its management structure to the
following segments: Paint Stores Group, Consumer Group and Global
Group. Historical business segment information has been updated to
reflect this change in reportable operating segments.

Net sales in the Paint Stores Group increased $116.7 million, or
9.5%, to $1.3 billion in the quarter and $436.9 million, or 13.3%, to
$3.7 billion in nine months due primarily to strong domestic
architectural paint sales to contractors in the first half of 2006
that softened slightly in the third quarter and improved industrial
maintenance product sales. Net sales from stores open for more than
twelve calendar months increased 7.2% in the quarter and 11.1% in nine
months. Paint Stores Group segment profit increased $48.3 million, or
27.1%, to $226.7 million in the quarter and $121.1 million, or 27.8%,
to $557.2 million in nine months. Paint Stores Group segment profit as
a percent to net sales increased to 16.8% from 14.5% in the quarter
and to 14.9% from 13.2% in nine months due primarily to increased
paint sales volume, effective SG&A expense control, and increased
selling prices on paint and all non-paint categories of products sold.

Net sales of the Consumer Group decreased $5.3 million, or 1.5%,
to $355.0 million in the quarter and $15.3 million, or 1.4%, to $1.09
billion in nine months. The sales declines were due primarily to lower
sales to certain major retail customers of this Group as they continue
to drive up inventory turns, sluggish Do-It-Yourself (DIY) sales at
other customers and the elimination of a portion of a paint program
with a large retail customer that most significantly impacted the
first half of 2006. Consumer Group segment profit increased $6.2
million, or 11.4%, to $60.3 million in the quarter and $21.7 million,
or 12.6%, to $193.3 million in nine months. As a percent to net sales,
this Group's segment profit increased to 17.0% from 15.0% in the
quarter and to 17.8% from 15.6% in nine months due to selling price
increases, tight spending control and better factory utilization
resulting from higher volume shipments to the Paint Stores Group that
offset continuing selected raw material cost increases.

Net sales of the Global Group increased $28.5 million, or 7.4%, to
$412.0 million in the quarter and $112.7 million, or 10.4%, to $1.2
billion in nine months when stated in U.S. dollars. This Group's net
sales stated in local currency increased 5.6% in the quarter and 7.5%
in nine months due primarily to selling price increases and volume
gains in all its operations worldwide. The Global Group's segment
profit improved $19.2 million, or 81.5%, to $42.7 million in the
quarter and $39.4 million, or 56.5%, to $109.2 million in nine months.
Global Group's segment profit as a percent to net sales increased to
10.4% from 6.1% in the quarter and to 9.2% from 6.5% in nine months.
This Group's segment profit was favorably impacted by increased sales,
improved operating efficiencies related to additional manufacturing
volume and expense control. There was no significant impact on Global
Group segment profit in the quarter due to currency exchange
fluctuations. This Group's third quarter segment profit last year was
negatively impacted by a loss of $7.9 million resulting from the
disposition of its majority interest in an automotive joint venture in
China.

Commenting on the third quarter and nine months results,
Christopher M. Connor, Chairman and Chief Executive Officer, said, "We
are pleased that the Paint Stores Group continues to achieve improved
net sales in spite of some recent slowing in the new-home market and
softness in D-I-Y customer demand. We are also pleased with the Paint
Stores Group's increased productivity that has helped increase
profitability while absorbing costs associated with opening 69 net new
stores during the first nine months of this year - an increase of 25%
over the same period in 2005.

"We are encouraged that our Consumer Group management continues to
drive efficiencies that have helped to partially offset that Group's
sales reductions while they continue to adjust to their customers'
inventory management practices. Although the Consumer Group's gross
margins continue to feel the pressure of certain persistent raw
material cost increases, our outlook is optimistic that this Group
will continue to manage through such cost increases and maintain its
profitability.

"We are pleased with the continued strong improvements in sales
and operational performance in every one of the businesses and
geographic areas of our Global Group. We are encouraged by the
increasing market penetration being achieved by our international
businesses and the continued growth of our domestic automotive and
product finishes sales.

"In the fourth quarter of 2006, we anticipate achieving an
increase in consolidated net sales between 5% and 7% over last year's
fourth quarter. With sales at that level, we expect diluted net income
per common share for the fourth quarter to be in the range of $.63 to
$.68 per share compared to $.54 per share last year. For the full year
2006, we anticipate an increase in our annual consolidated net sales
between 8% and 9% over the full year 2005. With annual sales at that
level, we estimate diluted net income per common share for the full
year 2006 will be in the range of $4.10 to $4.15 per share, including
an estimated $.08 per share charge for additional expense relating to
stock options, compared to $3.28 per share earned in 2005."

The Company will conduct a conference call to discuss its
financial results for the third quarter and its outlook for the fourth
quarter and full year 2006, at 11:00 a.m. ET on October 19, 2006. The
conference call will be webcast simultaneously in the listen only mode
by Vcall. To listen to the webcast on the Sherwin-Williams website,
www.sherwin.com, click on Press Room, then choose Corporate Press
Releases in the Corporate Information box and click on the webcast
icon following the reference to the October 19th release. The webcast
will also be available at Vcall's Investor Calendar website,
www.investorcalendar.com. An archived replay of the webcast will be
available at www.sherwin.com beginning approximately two hours after
the call ends and will be available until Monday, October 30, 2006 at
5:00 p.m. ET.

The Sherwin-Williams Company, founded in 1866, is one of the
world's leading companies engaged in the manufacture, distribution and
sale of coatings and related products to professional, industrial,
commercial and retail customers.

This press release contains certain "forward-looking statements",
as defined under U.S. federal securities laws, with respect to sales,
earnings and other matters. These forward-looking statements are based
upon management's current expectations, estimates, assumptions and
beliefs concerning future events and conditions. Readers are cautioned
not to place undue reliance on any forward-looking statements.
Forward-looking statements are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control
of the Company, that could cause actual results to differ materially
from such statements and from the Company's historical results and
experience. These risks, uncertainties and other factors include such
things as: general business conditions, strengths of retail and
manufacturing economies and the growth in the coatings industry;
changes in the Company's relationships with customers and suppliers;
changes in raw material availability and pricing; unusual weather
conditions; and other risks, uncertainties and factors described from
time to time in the Company's reports filed with the Securities and
Exchange Commission. Since it is not possible to predict or identify
all of the risks, uncertainties and other factors that may affect
future results, the above list should not be considered a complete
list. Any forward-looking statement speaks only as of the date on
which such statement is made, and the Company undertakes no obligation
to update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.

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The Sherwin-Williams Company and Subsidiaries
Statements of Consolidated Income (Unaudited)

Three months ended Nine months ended
September 30, September 30,
-------------------------- --------------------------
Thousands of
dollars,
except per
share data 2006 2005 2006 2005
------------ ------------ ------------ ------------

Net sales $ 2,116,711 $ 1,976,728 $ 6,015,209 $ 5,480,631
Cost of goods
sold 1,180,933 1,136,983 3,371,432 3,141,946
Gross profit 935,778 839,745 2,643,777 2,338,685
Percent to
net sales 44.2% 42.5% 44.0% 42.7%
Selling,
general and
administrative
expenses 648,920 602,517 1,888,067 1,737,177
Percent to
net sales 30.7% 30.5% 31.4% 31.7%
Interest
expense 16,437 12,092 50,624 37,612
Interest and
net investment
income (6,127) (1,329) (17,820) (3,090)
Other (income)
expense - net (143) 7,471 15,179 20,781
------------ ------------ ------------ ------------

Income before
income taxes
and minority
interest 276,691 218,994 707,727 546,205
Income taxes 97,579 66,970 230,352 156,726
Minority
interest 416 1,356
------------ ------------ ------------ ------------

Net income $ 179,112 $ 151,608 $ 477,375 $ 388,123
============ ============ ============ ============

Net income per
common share:
Basic $ 1.34 $ 1.11 $ 3.56 $ 2.82

Diluted $ 1.30 $ 1.07 $ 3.46 $ 2.73

Average shares
outstanding -
basic 133,622,166 136,911,347 134,196,870 137,618,594
============ ============ ============ ============

Average shares
and
equivalents
outstanding -
diluted 137,375,111 141,227,468 138,028,874 141,972,327
============ ============ ============ ============

Information regarding the Company's financial condition, operating
segment results and other information can be found on the Sherwin-
Williams website, "www.sherwin.com", by clicking on Press Room, then
choosing Corporate Press Releases in the Corporate Information box
and clicking on the reference to the October 19th release.
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