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“PPG today is well-positioned to capitalize on the continued recovery in the global economy,” Bunch said. “During the recession, we hunkered down, took significant restructuring actions, focused on reducing costs and generating cash, and also selectively invested for growth. We succeeded in each of these areas. Our efforts delivered resilient financial performance and superior returns to shareholders.”
In its most recent quarter, the company reported record adjusted earnings of $1.59 per share, despite overall volumes that were nearly 10% below pre-recession levels.
“Looking ahead, we plan to continue our strategy to grow and strengthen our coatings and specialty products businesses through innovation and expansion in emerging regions,” Bunch said. “We also intend to leverage our global capabilities and make selective investments.”
Bunch said that PPG is the only major company in the $90 billion coatings industry to have sizable market positions in all of the major coatings end-use markets. “About 70% of PPG’s coatings sales are from special-purpose coatings, which typically require higher technical competency and stronger customer partnerships,” he said.
Bunch singled out PPG’s optical products, automotive refinish and aerospace businesses as earnings growth drivers, and said he believes that excellent organic growth prospects remain in 2011 for most of the company’s businesses. “In addition, PPG’s expanding presence in emerging regions continues to reap benefits as we grow with higher overall industrial activity and capture a greater share of the growing aftermarkets in these regions,” Bunch said.
PPG’s sales in emerging regions have grown by more than $2.5 billion in the past decade and today account for more than 25% of the company’s sales, according to Bunch. “Asia is now the world’s largest coatings region, and we have become the second-largest coatings company there with a full complement of offerings and ample room to grow,” he said. A key driver in the emerging regions growth story is Asia, where PPG’s annual sales have grown from $600 million to more than $2 billion since 2005. In October, PPG announced that it would acquire the Chinese packaging coatings company Bairun.
For additional details, visit www.ppg.com.