Painting & Coating Industry (PCI) logo Powder coating summit logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • MATERIALS
  • TECHNOLOGIES
  • FINISHING
  • RESOURCES
  • EVENTS
  • DIRECTORIES
  • EMAGAZINE
  • CONTACT
cart
facebook twitter linkedin youtube
  • NEWS
  • Latest News
  • Market Trends & Reports
  • Price Alerts
  • Subscribe to eNewsletters
  • Global Top 10/ PCI 25
  • Weekly Featured Article
  • COATLE Word Game
  • PRODUCTS
  • Product News
  • Must See Products and Services
  • MATERIALS
  • Additives
  • Resins/Polymers
  • Pigments
  • Equipment
  • Distributors
  • TECHNOLOGIES
  • Adhesives
  • Architectural Coatings
  • Industrial Coatings
  • Nanotechnology
  • Powder Coatings
  • Solventborne
  • Special Purpose Coatings
  • Sustainability
  • UV Coatings
  • Waterborne
  • Waterborne
  • FINISHING
  • Finishing News
  • Finishing Technologies
  • Finishing Equipment
  • RESOURCES
  • Columns
  • Blogs
  • Coatings Supplier Handbook
  • Podcasts and Videos
  • PCI Store
  • eBooks
  • Sponsor Insights
  • White Papers
  • COATLE Word Game
  • Columns
  • Ask Joe Powder
  • Did you know?
  • Distribution Dive
  • Focus on Canada
  • Formulating With Mike
  • Innovation Insights
  • Moody's Coatings Conundrums
  • Powder Coating Perspectives
  • Target the Market
  • TiO2 Insider
  • Blogs
  • Editor's Viewpoint
  • Industry Insights
  • Podcasts and Videos
  • COAT-IT! Podcast
  • Videos/PCI TV
  • EVENTS
  • Coatings Trends & Technologies Summit
  • Paint and Coatings Academy
  • Webinars
  • Calendar of Events
  • Lifetime Achievement Award
  • DIRECTORIES
  • Buyer's Guide
  • Equipment Directory
  • Materials Directory
  • EMAGAZINE
  • Current Issue
  • eMagazine Archive
  • China Issue Archive
  • Editorial Advisory Board
  • CONTACT
  • Contact Us
  • Advertise
  • Subscribe to eMagazine
  • Subscribe to eNewsletters
Painting & Coating Industry (PCI) logo Powder coating summit logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Painting & Coating Industry (PCI) logo Powder coating summit logo
  • NEWS
    • Latest News
    • Market Trends & Reports
    • Price Alerts
    • Subscribe to eNewsletters
    • Global Top 10/ PCI 25
    • Weekly Featured Article
    • COATLE Word Game
  • PRODUCTS
    • Product News
    • Must See Products and Services
  • MATERIALS
    • Additives
    • Resins/Polymers
    • Pigments
    • Equipment
    • Distributors
  • TECHNOLOGIES
    • Adhesives
    • Architectural Coatings
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • Sustainability
    • UV Coatings
    • Waterborne
    • FINISHING
      • Finishing News
      • Finishing Technologies
      • Finishing Equipment
    • RESOURCES
      • Columns
        • Ask Joe Powder
        • Did you know?
        • Distribution Dive
        • Focus on Canada
        • Formulating With Mike
        • Innovation Insights
        • Moody's Coatings Conundrums
        • Powder Coating Perspectives
        • Target the Market
        • TiO2 Insider
      • Blogs
        • Editor's Viewpoint
        • Industry Insights
      • Coatings Supplier Handbook
      • Podcasts and Videos
        • COAT-IT! Podcast
        • Videos/PCI TV
      • PCI Store
      • eBooks
      • Sponsor Insights
      • White Papers
      • COATLE Word Game
    • EVENTS
      • Coatings Trends & Technologies Summit
      • Paint and Coatings Academy
      • Webinars
      • Calendar of Events
      • Lifetime Achievement Award
    • DIRECTORIES
      • Buyer's Guide
      • Equipment Directory
      • Materials Directory
    • EMAGAZINE
      • Current Issue
      • eMagazine Archive
      • China Issue Archive
      • Editorial Advisory Board
    • CONTACT
      • Contact Us
      • Advertise
      • Subscribe to eMagazine
      • Subscribe to eNewsletters
    Global Top 10 and PCI 25Company News

    PPG Reports Record Second Quarter Net Sales and Earnings Per Share

    CompanyNews-95996740.jpg
    July 19, 2015

    PITTSBURGH – PPG Industries reported record second quarter 2015 net sales from continuing operations of $4.1 billion, up $18 million, or about 1 percent, versus the prior-year figure of $4.08 billion. Net sales in local currencies increased by 8 percent, or approximately $340 million, year-over-year, which included a 7 percent contribution from acquisition-related sales and a 1 percent improvement in sales volume. Unfavorable foreign currency translation reduced year-over-year net sales by more than 7 percent, or nearly $320 million.

    Second quarter 2015 reported net income from continuing operations was $337 million, or $1.23 per diluted share, and adjusted net income from continuing operations was $458 million, or $1.67 per diluted share. Net income from continuing operations for the second quarter 2015 includes an after-tax business restructuring charge of $106 million, or 39 cents per diluted share, and portfolio transformation transaction-related costs of $15 million, or 5 cents per diluted share. Second quarter 2014 reported net income from continuing operations was $393 million, or $1.40 per diluted share, and adjusted net income from continuing operations was $398 million, or $1.42 per diluted share. Net income from continuing operations for the second quarter 2014 included after-tax portfolio transformation transaction-related costs of $2 million, or 1 cent per diluted share, and pension settlement costs of $3 million, or 1 cent per diluted share.

    During the second quarter 2015, the adjusted effective tax rate from continuing operations increased to 24.5 percent versus 24.1 percent in the second quarter 2014, resulting principally from the inclusion of income from the Comex acquisition.

    “We delivered all-time-record adjusted earnings per share, up 18 percent, supported by second quarter earnings records in each of our coatings segments and expanded year-over-year earnings in our glass segment,” said Charles E. Bunch, PPG Chairman and Chief Executive Officer. “We achieved these records despite the significant impact of unfavorable foreign currency translation, and the records demonstrate the strength of our transformed business portfolio, our strong operational focus and the benefits from our continuing cash deployment.

    “Sales volumes grew 1 percent year-over-year, similar to the first quarter, reflecting modest global economic growth. Regionally, in comparison with last quarter, our growth rates improved in Europe and the U.S., moderated in Asia and remained unfavorable in South America,” Bunch said.

    “We achieved our strongest organic sales growth in our automotive OEM (original equipment manufacturer), packaging and automotive refinish coatings businesses. This sales growth was supplemented by acquisitions, primarily our Comex acquisition, which continued to deliver excellent performance with year-over-year organic sales growth of high-single-digit percentages,” Bunch added.

    “Looking ahead, we anticipate global economic growth to continue but remain uneven,” Bunch said. “We will continue our heritage of aggressive cost management, which includes execution of the restructuring actions we announced in April. Despite modest economic growth, we anticipate increased benefits from a lower cost structure and higher earnings leverage on incremental volume growth. Also, based on current foreign exchange rates and the seasonality of our businesses, we expect negative foreign currency translation impacts to remain sizable but to moderate in the second half of the year.

    “Lastly, we remain committed to and on track with our previously announced earnings-accretive cash deployment targets. Year-to-date, we have closed or announced business acquisitions with an aggregate purchase price of about $400 million, and we have repurchased $350 million in PPG stock,” Bunch concluded.

    In April, the company announced a business restructuring program that includes actions necessary to adjust employee levels and production capacity in certain businesses and regions and to achieve cost synergies related to recent acquisitions. Second quarter 2015 financial results include a business restructuring charge totaling $140 million on a pretax basis, or $106 million after-tax. The company expects these restructuring actions will result in full-year pretax savings of $100 million to $105 million by 2017, including 2015 partial-year savings of $15 million to $20 million.

    Second Quarter 2015 Reportable Segment Financial Results

    Performance Coatings segment net sales for the quarter were $2.41 billion, up about 3 percent year-over-year. Acquisition-related sales, including Comex and several smaller acquisitions, added about $235 million to net sales, or about 10 percent. Unfavorable foreign currency translation reduced net sales by about $200 million, or about 9 percent. Segment sales volumes grew 1 percent year-over-year. Organic sales growth continued in the aerospace and automotive refinish coatings businesses, reflecting continued end-use-market adoption of leading PPG technologies and growing demand. Architectural coatings volumes in the U.S. and Canada grew by low-single-digit percentages, with growth in the company-owned stores and national retail (do-it-yourself) channels partly offset by modestly lower sales in the independent dealer channel. Architectural coatings – EMEA (Europe, Middle East and Africa) sales volumes were flat versus the prior-year period and varied by country, although aggregate year-over-year growth rates improved in comparison to the first quarter 2015. Protective and marine coatings volumes also improved, led by North American gains, which included initial Comex acquisition-related sales synergies. Segment income was $411 million, up $38 million, or 10 percent, year-over-year, driven primarily by acquisition-related income and improved operating performance in all businesses. Unfavorable foreign currency translation reduced segment income by about $25 million.

    Industrial Coatings segment net sales for the quarter were $1.41 billion, down 3 percent year-over-year. Segment sales volumes grew more than 2 percent, and acquisition-related sales, primarily from REVOCOAT, added about 3 percent, offset by unfavorable foreign currency translation that reduced net sales by approximately $110 million. The automotive OEM coatings business delivered higher sales volumes in all regions, growing in aggregate by mid-single-digit percentages, which exceeded the global industry growth rate of about 1 percent for the quarter. Volumes in the industrial coatings and specialty coatings and materials businesses declined about 2 percent, with wide disparity across the various general industrial end-use markets supplied globally. Global industrial demand was weak early in the quarter but improved as the quarter progressed. Packaging coatings sales volumes increased by high-single-digit percentages, with strong growth in all regions driven by customer adoption of new PPG technologies. Total segment income for the quarter was $260 million, up $3 million, or 1 percent, year-over-year. Segment income benefited from acquisition-related gains and manufacturing cost improvements, which were partly offset by approximately $15 million of unfavorable foreign currency translation.

        Glass segment net sales were $279 million for the quarter, down $10 million, or 3 percent, year-over-year. Improved pricing in both businesses was offset by unfavorable foreign currency translation that impacted sales by about $10 million. PPG’s sale of a flat glass production facility in 2014 resulted in lower flat glass volumes year-over-year, but it improved the business’s value-added product mix. Fiber glass volumes were consistent with the prior-year quarter. Segment income was $37 million, up $26 million year-over-year primarily due to the favorable flat glass product mix and lower manufacturing costs stemming from the facility sale, partly offset by higher year-over-year pension expense and a modest unfavorable foreign currency translation impact.

    KEYWORDS: financial reports Paint and Coating Manufacturers

    Share This Story

    Looking for a reprint of this article?
    From high-res PDFs to custom plaques, order your copy today!

    Recommended Content

    JOIN TODAY
    to unlock your recommendations.

    Already have an account? Sign In

    • PCI-0724-Global10-Feature-1440.png

      2024 Global Top 10: Top Paint and Coatings Companies

      Who ranks on top? PCI’s annual ranking of the top 10...
      Global Top 10 and PCI 25
      By: Courtney Bassett
    • PCI-0724-PCI25-Feature-1440.png

      2024 PCI 25: Top Paint and Coatings Companies

      PCI's annual ranking of the top 25 North American paint...
      Global Top 10 and PCI 25
      By: Courtney Bassett
    • pci1022-Kinaltek-Lead-1170.jpg

      A Novel Pigment Production Technology

      Following an extensive R&D program that demonstrated...
      Paint and Coating Pigments
      By: Jawad Haidar and Nitin Soni
    You must login or register in order to post a comment.

    Report Abusive Comment

    Subscribe For Free!
    • eMagazine
    • eNewsletter
    • Online Registration
    • Subscription Customer Service

    The Coatings Minute: Your Inside Look at PCInnovations

    The Coatings Minute: Your Inside Look at PCInnovations

    The Coatings Minute: Print Returns with PCI’s New Showcase Issue

    The Coatings Minute: Print Returns with PCI’s New Showcase Issue

    CTT Registration Now Open

    CTT Registration Now Open

    The Coatings Minute: Why Industry News Matters More Than Ever

    The Coatings Minute: Why Industry News Matters More Than Ever

    More Videos

    Sponsored Content

    Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the PCI audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of PCI or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

    close
    • Modern arapartment complex painted in bright colors.
      Sponsored byEPS - Engineered Polymer Solutions

      Architectural Polymers Leading the Way in Coatings Innovation

    • paint sprayer in a workshop
      Sponsored byallnex

      Enabling Performance and Compliance: allnex Introduces a New Line of VOC Exempt Solvent-Borne Resins

    Popular Stories

    No. 3 AkzoNobel

    AkzoNobel to Close Two Manufacturing Sites

    A collage of products using non-PFAS

    A Surge in Non-PFAS Releases

    Modern living room interior with green plants, sofa and green wall

    Reimagining Architectural Paints with Plant-Based Acrylic Binders



    PCI Buyers Guide

    Submit a Request for Proposal (RFP) to suppliers of your choice with details on what you need with a click of a button

    Start your RFP

    Browse our Buyers Guide for manufacturers and distributors of all types of coatings products and much more!

    Find Suppliers

    Events

    September 3, 2025

    Coatings Trends & Technologies Summit

    The Coatings Trends & Technologies (CTT) Summit is an annual conference for both liquid and powder coatings formulators and manufacturers to discuss innovations in coatings technology. This event combines high-quality technical presentations, a resource-rich exhibit hall, and dedicated networking opportunities to connect scientific minds, foster innovation, and cultivate game-changing new ideas!

    January 1, 2030

    Webinar Sponsorship Information

    For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

    View All Submit An Event

    Poll

    Longest-running laboratory experiment

    What is the longest-running laboratory experiment?
    View Results Poll Archive

    Products

    CTT Summit Short Courses (Live 9/3/25)

    Coatings Trends & Technologies Summit is expanding its offerings with four short courses. These short courses will offer an extensive day of interactive learning.

    See More Products
    pci  webinar april 2025

    PCI CASE EBOOK

    Related Articles

    • PPG Reports Record Fourth-Quarter Sales, Earnings Per Share

      See More
    • NEWS

      PPG Posts Record Earnings Per Share in 2011

      See More
    • NEWS

      RPM Reports Record Sales for Second Quarter

      See More

    Related Products

    See More Products
    • pci april 2020

      PCI April 2020 Issue

    See More Products
    ×

    Keep the info flowing with our eNewsletters!

    Get the latest industry updates tailored your way.

    JOIN TODAY!
    • RESOURCES
      • Advertise
      • Contact Us
      • Directories
      • Store
      • Want More
    • SIGN UP TODAY
      • Create Account
      • eMagazine
      • eNewsletters
      • Customer Service
      • Manage Preferences
    • SERVICES
      • Marketing Services
      • Reprints
      • Market Research
      • List Rental
      • Survey & Sample
    • STAY CONNECTED
      • LinkedIn
      • Facebook
      • Youtube
      • X (Twitter)
    • PRIVACY
      • PRIVACY POLICY
      • TERMS & CONDITIONS
      • DO NOT SELL MY PERSONAL INFORMATION
      • PRIVACY REQUEST
      • ACCESSIBILITY

    Copyright ©2025. All Rights Reserved BNP Media.

    Design, CMS, Hosting & Web Development :: ePublishing

    Painting & Coating Industry (PCI) logo Powder coating summit logo
    search
    cart
    facebook twitter linkedin youtube
    • Sign In
    • Create Account
    • Sign Out
    • My Account
    Painting & Coating Industry (PCI) logo Powder coating summit logo
    • NEWS
      • Latest News
      • Market Trends & Reports
      • Price Alerts
      • Subscribe to eNewsletters
      • Global Top 10/ PCI 25
      • Weekly Featured Article
      • COATLE Word Game
    • PRODUCTS
      • Product News
      • Must See Products and Services
    • MATERIALS
      • Additives
      • Resins/Polymers
      • Pigments
      • Equipment
      • Distributors
    • TECHNOLOGIES
      • Adhesives
      • Architectural Coatings
      • Industrial Coatings
      • Nanotechnology
      • Powder Coatings
      • Solventborne
      • Special Purpose Coatings
      • Sustainability
      • UV Coatings
      • Waterborne
      • FINISHING
        • Finishing News
        • Finishing Technologies
        • Finishing Equipment
      • RESOURCES
        • Columns
          • Ask Joe Powder
          • Did you know?
          • Distribution Dive
          • Focus on Canada
          • Formulating With Mike
          • Innovation Insights
          • Moody's Coatings Conundrums
          • Powder Coating Perspectives
          • Target the Market
          • TiO2 Insider
        • Blogs
          • Editor's Viewpoint
          • Industry Insights
        • Coatings Supplier Handbook
        • Podcasts and Videos
          • COAT-IT! Podcast
          • Videos/PCI TV
        • PCI Store
        • eBooks
        • Sponsor Insights
        • White Papers
        • COATLE Word Game
      • EVENTS
        • Coatings Trends & Technologies Summit
        • Paint and Coatings Academy
        • Webinars
        • Calendar of Events
        • Lifetime Achievement Award
      • DIRECTORIES
        • Buyer's Guide
        • Equipment Directory
        • Materials Directory
      • EMAGAZINE
        • Current Issue
        • eMagazine Archive
        • China Issue Archive
        • Editorial Advisory Board
      • CONTACT
        • Contact Us
        • Advertise
        • Subscribe to eMagazine
        • Subscribe to eNewsletters