PPG Third Quarter Report Reveals a Decline in Glass Segment SalesOctober 19th, 2012 by DWM Magazine
Glass segment sales from 2012 fell $11 million from the year prior to $262 million, according to PPG Industries’ third-quarter report. Lower pricing and a negative foreign currency translation counterbalanced rising flat glass volumes. Segment earnings rose $1 million from the prior-year quarter, to $24 million.
The report goes on to note segment sales of architectural coatings in Europe, the Middle East and Africa (EMEA) fell $9 million, or 2 percent from last year from $573 million to $564 million. Despite the January acquisition of Dyrup which increased sales 8 percent, currency translation negatively impacted sales by an estimated 11 percent. In addition the report states the higher global protective coatings volume offsets the weakening architectural demand and marine new build progress.
Segment earnings increased to $203 million by 7 percent. The nine months ended September 30, 2012 ended with business restructuring charges of $46 million for the industrial coatings segment and $63 million for the architectural coatings of EMEA. The daily sales of U.S. architectural coatings slightly increased with low- to mid-single-digit percentages. The strongest of these results comes from company-owned stores. Industrial coatings segment sales for the quarter also saw growth and were up 5 percent at a total of $1.1 billion, an increase from the year prior of $51 million.
As a whole, PPG’s net income improved from 2011′s $311 million, $1.96 per diluted share, to 2012′s quarter net income of $339 million, $2.18 per diluted share. This total includes nonrecurring charges. Net sales remain unaffected from its 2011 third quarter to the 2012 quarter at $3.8 billion.