PPG Industries reported net sales for the second quarter 2012 of $4 billion. Net income for the quarter was $362 million, or $2.34 per diluted share, including nonrecurring charges.
Like this article? Sign up to receive our weekly news blasts here.Adjusted net income for the quarter, excluding the nonrecurring charges, was $365 million, or $2.36 per diluted share. Second quarter 2011 net sales were $4 billion, and net income was $340 million, or $2.12 per diluted share.
“In the second quarter, PPG delivered the highest quarterly earnings per share in company history as a result of continued execution, strong cost discipline and effective cash deployment,” said Charles E. Bunch, PPG chairman and CEO. “These record earnings were achieved despite significantly weaker European and Latin American currency exchange rates and growth that varied by region and end-use market."
“Aerospace and automotive manufacturing remained our strongest end-use markets, delivering excellent growth, and recent acquisitions aided sales and earnings results,” Bunch noted.
Performance Coatings segment sales for the quarter were $1.2 billion, up 1 percent versus the prior year. The negative impact of foreign currency translation was offset by higher selling prices. The aerospace business delivered strong growth in all regions, and U.S. architectural coatings sales were seasonally stronger than the first quarter and improved by mid-single-digit percentages over a difficult prior-year comparison period that included channel stocking for the new OLYMPIC(R) ONE product. Protective and marine coatings volumes were muted, with gains in protective coatings offset by lower marine demand. Automotive refinish volumes declined due to lower European demand and customer destocking. Segment earnings for the quarter of $204 million were level with the prior-year period.
Second quarter 2012 results include after-tax charges of $3 million, or 2 cents per diluted share, for costs related to the company’s announced agreement to separate its commodity chemicals business and merge it with Georgia Gulf Corp. or its subsidiary.
According to Bunch, the negative currency impacts reduced overall sales by 5 percent and resulted in a negative 10 cents per share earnings impact versus the second quarter 2011.
