PPG Reports Record Third Quarter Earnings
October 21, 2010

PPG Industries today reported sales for the third quarter of $3.5 billion, an increase of 7 percent versus the prior year's third quarter. Third quarter reported net income was $262 million, or $1.58 per share. Third quarter 2009 sales were $3.2 billion, and reported net income was $159 million, or 96 cents per share.

Adjusted net income for the quarter was $1.59 per share. Third quarter 2009 adjusted net income was 97 cents per share. Both periods include an aftertax charge of 1 cent per share to reflect the net increase in the current value of the company's obligation under its proposed asbestos settlement, which is pending court proceedings.

"Our record third quarter earnings reflect the benefits of the strategic initiatives we've undertaken to broaden our geographic footprint - especially in high-growth emerging regions - and the diversity of the end-use markets we serve," said Charles E. Bunch, PPG chairman and chief executive officer. "In addition, our lower overall cost structure has enabled us to leverage the ongoing, gradual global industrial recovery. We achieved these record results despite persistent raw material cost inflation and anemic construction markets in the developed economies of the world."

Bunch said PPG's third quarter segment earnings grew by more than 35 percent versus the same period last year and the company's overall sales volumes grew 6 percent over 2009 - even with a decline in the company's architectural coatings businesses serving the mature regions.

Looking at the glass segment specifically, the company says sales increased $37 million, or 17 percent, compared with the prior year as a result of improved fiber glass volumes and price gains. Segment income was $32 million, an improvement of $38 million due to higher volumes, lower manufacturing costs, and higher equity earnings and royalty income.

Performance Coatings segment sales in the third quarter 2010 increased $28 million, or 3 percent, versus last year's third quarter as a result of higher selling prices. Volumes were flat as declines in the North American architectural coatings business offset solid growth in several of PPG's top-performing businesses, including automotive refinish, aerospace, and protective and marine coatings, and growth in the Asia/Pacific region.

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