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
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
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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