PPG Reports Record Fourth Quarter Sales
PPG Industries recently reported record fourth quarter 2013 net sales from continuing operations of $3.7 billion, up 14%, or $459 million, vs. the prior year. Fourth quarter 2013 reported net income from continuing operations was $254 million. Fourth quarter 2012 reported net income from continuing operations was $191 million.
Performance Coatings segment net sales for the quarter were $1.4 billion, an increase of 25%, reportedly due primarily to acquired-business sales, partly offset by a 3% decline in segment volumes. Aerospace net sales growth continued, aided by ongoing industry growth and sales from acquired businesses. Automotive refinish net sales grew in all major regions, including continued volume gains in emerging regions and a return to growth in Europe.
Industrial Coatings segment net sales for the quarter were $1.2 billion, increasing 10%, or $108 million, vs. the prior year, primarily due to strong volume improvement, with acquisition-related gains also contributing. Volumes in automotive original equipment manufacturer (OEM) coatings grew by more than 10% globally, reportedly outpacing a global industry growth rate of about 3%, with each major PPG region delivering similar growth rates. The industrial coatings business also grew volumes globally, led by North American gains, growth in Asia that remained varied by end-use market, and initial volume recovery in European demand that led to a flat year-over-year comparison for that region.
Architectural Coatings–EMEA (Europe, Middle East and Africa) segment net sales for the quarter were $466 million, up $1 million compared to the prior-year quarter, primarily due to favorable foreign currency translation. Fourth quarter volumes declined by 4% year over year, consistent with the previous quarter and a significant improvement compared to the first half 2013, when year-over-year volume declines averaged 10%.
Glass segment net sales were $264 million for the quarter, up $23 million year over year. Segment volumes grew 8% on improved global fiber glass demand. Flat glass pricing increased, as did commercial construction-related demand. Segment earnings were $22 million, an increase of $14 million vs. the prior-year quarter. Segment earnings improved due to higher net sales and manufacturing cost improvements, partly offset by the negative impact of cost inflation, including higher transportation and natural gas costs.
“Our record fourth quarter financial performance caps off one of the most successful years in the company’s history, both financially and strategically,” said Charles E. Bunch, chairman and CEO. “With the 45% increase in earnings per share vs. last year, we have now delivered 14 consecutive quarters of record adjusted earnings, illustrating the benefits of our strong coatings portfolio, broad global footprint, prudent cash deployment and measurable results from our strategic actions.”
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