PPG Reports Record First Quarter Earnings Per Share
April 21, 2011
PPG Industries reported its sales for the first quarter of 2011 were $3.5 billion, an increase of 13 percent versus the prior year’s first quarter. Glass segment sales increased $38 million, or 17 percent, compared with the prior year. Segment income was $26 million, an improvement of $29 million due to the impact of higher volumes and pricing, as well as lower manufacturing costs and improved equity earnings.
The company posted double-digit percentage sales increases in each major region, and all reporting segments achieved higher sales volumes and pricing. Reported net income for the quarter increased to $228 million, or $1.40 per diluted share. First quarter 2010 sales were $3.1 billion, and reported net income was $30 million, or 18 cents per diluted share.
First quarter 2010 adjusted net income was $115 million, or 69 cents per diluted share. First quarter 2010 net income included an aftertax charge of $85 million, or 51 cents per diluted share, as a result of a change in U.S. tax law that was part of the U.S. Patient Protection and Affordable Care Act enacted in March 2010. A Regulation G Reconciliation of adjusted net income to reported net income is included below.
“We’ve continued our strong earnings momentum and have posted our third consecutive quarterly record,” says Charles E. Bunch, PPG chairman and chief executive officer. “Each of our reporting segments delivered higher year-over-year earnings driven by continued volume growth from a broadening global industrial recovery, including strengthening conditions in Europe.”
Bunch stated that construction activity remained low in developed regions and that there were no signs of imminent improvement. Despite this market weakness, the company says it achieved modest year-over-year volume gains in these markets. Bunch adds that the company’s Commodity Chemicals and Glass segments benefited from higher pricing resulting in substantially higher earnings versus the recession-impacted first quarter of last year.