PPG Industries has reported sales for the third quarter of $3.5 billion, an increase of seven percent versus the prior year’s third quarter.
PITTSBURGH – PPG Industries has reported sales for the third quarter of $3.5 billion, an increase of seven 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 after-tax charge of one 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.
Performance Coatings segment sales in the third quarter 2010 increased $28 million, or three 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. The protective and marine coatings business had a record quarter for sales and earnings. Segment earnings grew $19 million, or 12 percent, to a new quarterly record of $174 million as a result of the improved business mix and lower cost structure.
Industrial Coatings segment sales for the quarter rose $103 million, or 13 percent, due to volume growth of 14 percent, especially in the automotive coatings and industrial coatings businesses and in all regions. Segment earnings for the quarter were $86 million, an increase of $28 million from the prior year’s third quarter. The benefit from improved volumes and reduced costs due to prior restructuring actions was partially offset by raw material inflation.
Sales for the Architectural Coatings – EMEA segment decreased $47 million, or eight percent, due primarily to currency conversion. Segment earnings declined $9 million to $50 million, with about one-half of the decrease associated with currency conversion. The segment sales volume trend remained modestly negative at a level consistent with prior quarters this year.
The Optical and Specialty Materials segment delivered record third-quarter sales and earnings. Segment sales for the quarter increased $31 million, or 12 percent, as a result of double-digit percentage volume growth in both businesses. Segment earnings improved $15 million to $82 million as a result of the higher sales volumes, countered slightly by increased selling and advertising costs to support the sales growth.
Commodity Chemicals segment sales for the quarter increased $83 million, or 29 percent, due to higher volumes and prices. Segment earnings grew $41 million due to the improved pricing and volumes, partially offset by higher maintenance costs.
Glass segment sales increased $37 million, or 17 percent, compared with the prior year as a result of improved fiberglass 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.
PPG Reports Improved Third-Quarter Earnings
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