PPG Posts Flat Third Quarter Results
PPG Industries recently reported third quarter 2012 net sales of $3.8 billion, the same figure reported in the prior year’s third quarter. Net income for the quarter was $339 million, down compared to last year’s third quarter net income of $311 million. Adjusted net income for the quarter was $348 million.
Glass segment sales were $262 million for the quarter, down $11 million from the prior year. Higher flat glass volumes were reportedly offset by lower pricing and the negative impact of foreign currency translation. Fiber glass pricing declined from prior-year levels, driven by reduced industry demand in Europe and Asia. Segment earnings were $24 million, an increase of $1 million from the prior-year quarter, as strong manufacturing cost improvements were partly offset by the lower pricing and lower fiber glass equity earnings.
“We delivered record third quarter earnings per share despite uneven demand among regions and end-use markets,” said Charles E. Bunch, chairman and CEO. “Our coatings segments drove the record performance on improved local currency sales and 20% earnings growth.
“North American sales activity remained strongest, highlighted by excellent automotive OEM and refinish coatings growth,” he said. “Business levels in Asia and Latin America were flat in aggregate but mixed by end-use market, including growth in our automotive OEM and packaging coatings businesses that was offset by weakening coatings demand due to lower marine new builds. European volume remained below the prior-year quarter, but the trend improved notably in comparison with second quarter year-over-year results due to less customer inventory destocking. Sales declined in our Optical and Specialty Materials segment in all regions due to customer inventory management actions stemming from lower growth rates in the optical channel and in anticipation of the upcoming introduction of our next-generation TRANSITIONS(R) lenses.”
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