) said that the presiding judge in a proceeding in the Superior
Court of the State of California, County of Santa Clara, has
issued an order setting the lead paint trial to commence on Jul
15. Earlier, in May, the judge postponed the previous trial date
of Jun 24.
Sherwin-Williams is among the defendants in a proceeding
involving a claim of public nuisance brought by ten of
California's largest cities and counties. They claimed that the
presence of lead pigments in residential paints and coatings
constituted a public nuisance and endangered the health of
millions in the state. The plaintiffs seek the abatement of the
alleged public nuisance and recovery based on various legal
Lead paint legal proceedings were also brought by the state of
Rhode Island, the city of St. Louis, Mo., various cities and
counties in the State of New Jersey, the state of Ohio and
various cities in the state of Ohio, the city of Chicago, Ill.,
and the city of Milwaukee, Wis. These include claims by children
allegedly injured from ingestion of lead pigment or
lead-containing paint and claims for damages incurred by the
children's parents or guardians.
However, except for the Santa Clara case, all other
proceedings have been concluded in favor of Sherwin-Williams and
other defendants. As such, investors will be closely watching the
outcome of the Santa Clara lead trial.
Sherwin-Williams, which is among the major paint companies
Akzo Nobel NV
), follows a strategy of growth through acquisitions and internal
initiatives such as efficient working capital management and
innovation. Its philosophy is to diversify its customer base and
expand its operations into various geographies.
Sherwin-Williams continues to invest in its Paint Stores
Group segment to boost market share. It is also implementing
effective pricing strategies to offset higher raw material
In addition, the acquisition of Consorcio Comex S.A. de C.V.
should usher in significant opportunity. The acquisition will
enable Sherwin-Williams to expand its architectural paint
business in the Americas.
However, Sherwin-Williams remains exposed to currency
headwinds. Its consumer and paint stores businesses still remain
impacted by the U.S. economic weakness. A material recovery in
the housing and commercial construction markets is not expected
in the near term.
Sherwin-Williams carries a Zacks Rank #3 (Hold).
Other specialty chemicals companies with favorable Zacks Rank
OM Group Inc.
). While OM Group holds a Zacks Rank #1 (Strong Buy), Ferro
retains a Zacks Rank #2 (Buy).
AKZO NOBEL NV (AKZOY): Get Free Report
FERRO CORP (FOE): Free Stock Analysis Report
OM GROUP INC (OMG): Free Stock Analysis
SHERWIN WILLIAM (SHW): Free Stock Analysis
To read this article on Zacks.com click here.