Painting & Coating Industry (PCI) logo Powder coating summit logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • MATERIALS
  • TECHNOLOGIES
  • RESOURCES
  • EVENTS
  • DIRECTORIES
  • EMAGAZINE
  • CONTACT
  • SIGN UP!
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
  • FINISHING
  • Industrial Coatings
  • Nanotechnology
  • Powder Coatings
  • Solventborne
  • Special Purpose Coatings
  • Sustainability
  • UV Coatings
  • Waterborne
  • FINISHING
  • Finishing News
  • Finishing Technologies
  • Finishing Equipment
  • Finishing Today
  • RESOURCES
  • Columns
  • Blogs
  • Coatings Supplier Handbook
  • Podcasts and Videos
  • PCI Store
  • Classifieds
  • 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
    • FINISHING
      • Finishing News
      • Finishing Technologies
      • Finishing Equipment
      • Finishing Today
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • Sustainability
    • UV Coatings
    • Waterborne
  • 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
    • Classifieds
    • 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
  • SIGN UP!
Breaking NewsIndustry News

INDUSTRY NEWS EXTRA: Business Pulse
First-Quarter Reports Reflect Deliberate Pace of Economic Recovery

May 31, 2002
First-quarter financial reports from major coatings manufacturers suggest that the uneven pace of the economic recovery is resulting in subdued growth in key coatings markets, with the industrial sector appearing to lag behind the architectural segment in rebounding from the 2001 downturn.

The Sherwin-Williams Co., PPG Industries Inc., DuPont Co., ICI plc, and Ferro Corp. reported declines in first-quarter earnings and sales from the same period a year earlier, and PPG announced additional restructuring moves aimed at reducing costs. Akzo Nobel said net income rose from the prior year, but operating income for the company's Coatings business fell slightly.

On the plus side, Rohm and Haas Co. reported a 20% increase in earnings, attributed in part to cost-reduction moves, while The Valspar Corp. said net income for its second quarter ended April 26 rose 45% from the prior-year period.

Executives with several companies are forecasting improved financial results in the second half of this year. But the companies said the strength of economic recovery appears to be uncertain, and indicated they are continuing to reduce costs and take other measures to address sales volumes that generally remain below levels of a year earlier. Also mentioned as a drag on results is the economic situation in Latin America, particularly in Argentina where a severe downturn has led to a devaluation of the peso.

In comments on his company's first-quarter results, Sherwin-Williams Chairman and CEO Christopher M. Connor said "some signs of a strengthening domestic economy are beginning to appear in certain markets in which we participate." But he added that "the broader economic recovery will be slow and will continue to impact our sales and profit improvements." The company reported first-quarter net income excluding accounting changes of $34.8 million, a 5.8% decline from the first quarter of 2001. Sales for the quarter fell 0.8%, to $1.15 billion.

Connor said the company anticipates "only a slow pick-up in the industrial and OEM markets" during the rest of the year.

DuPont said it expects business conditions in the United States and possibly in Europe to continue to improve during the second quarter, generating volume increases for most of its businesses. But a "significant period of demand growth is needed to absorb capacity before pricing strengthens in the manufacturing sector," the company said. Volume gains and lower raw material costs will be mitigated by a continued strong dollar and a "difficult price environment," the company said.

DuPont reported net income of $552 million excluding one-time items, a decline of 2.6% from the first quarter of 2001. Sales for the quarter fell 11%, to $6.8 billion. Key factors in earnings declines included selling prices that were 4% lower in local regions, a stronger U.S. dollar and reduced volumes, partially offset by lower raw-material costs, the company said. Net income including one-time items was $479 million, a decline of 4% from the prior-year period.

For DuPont's Coatings & Color Technologies segment, first-quarter operating income was $85 million, a decline of 39.3% from the prior-year period. Sales for the segment fell 5.6%, to $1.137 billion, with the decline resulting primarily from lower prices for OEM coatings and titanium dioxide pigments.

Other companies echoed the views expressed by executives with Sherwin-Williams and Du Pont. Results for those companies included the following:

  • Akzo Nobel reported first-quarter net income of 234 million euros (EUR), a 9% increase from the first quarter of 2001. Sales for the quarter rose less than 1%, to EUR 3.488 billion. For the company's Coatings business, operating income was EUR 87 million, a decline of 1.1% from the prior-year period. Coatings sales rose 2%, to EUR 1.337 billion. Sales rose for decorative, marine and protective and auto-refinish coatings, while sales for industrial coatings were described as "mixed." The company last year launched a restructuring of its coatings and chemicals operations, a program that is expected to eventually reduce the company's worldwide work force by 3,500 positions, or 5% of the employment total.

  • PPG reported first-quarter net income of $34 million, including one-time after-tax charges of $55 million for restructuring and $9 million for the cumulative effect of a required accounting change. Net income declined 40% from the first quarter of 2001, including a $71 million after-tax restructuring charge in the 2001 quarter. Sales for this year's first quarter declined 9.5%, to $1.9 billion.

    PPG's Coatings segment reported a 14.1% gain in first-quarter operating income, to $71 million, despite a 4.8% decline in sales, to $1.052 billion. The company said the drop in sales was the result of declines in automotive OEM and refinish coatings and industrial and aerospace-coatings volumes, with the sharpest retreats occurring in Europe. The operating-income gain was attributed to cost-cutting and lower raw-material costs.

  • Valspar reported net income of $34.534 million for the company's second quarter ended April 26, a 45% increase from the same period a year earlier. Sales for the quarter rose 8%, to $554 million. For the six-month period ended April 26, net income was $47.142 million, a 50.2% increase from the prior-year period. Sales for the six-month period rose 16%, to $985.042 million.

  • ICI reported first-quarter net income of ¿45 million (approximately $66 million U.S.), a 15% decline from the first quarter of 2001. Sales for the quarter fell 10.1%, to ¿1.474 billion ($2.1 billion), as sales growth in Asia was offset by declines in Europe and the Americas.

    For ICI's Paints business, first-quarter earnings were unchanged at ¿38 million ($55.6 million), while operating profit rose 6%, to ¿25 million ($36.6 million). Sales for the quarter declined 2%, to ¿509 million ($731 million).

  • Rohm and Haas reported first-quarter net income of $79 million, a 20% increase from the first quarter of 2001. Sales for the quarter fell 12%, to $1.34 billion. For the company's coatings segment, first-quarter net income from ongoing operations was $50 million, a 46% increase from the prior-year quarter. Sales for the segment declined less than 1%, to $425 million.

  • Ferro reported first-quarter net income of $7.2 million, a decline of 48.6% from the first quarter of 2001. Sales for the quarter rose 13.1%, to a record $426.8 million.

    Ferro's first-quarter coatings-segment operating income was $24.0 million, a gain of 8.9% from the prior-year quarter. Segment sales rose 24.5%, to $286.3 million, primarily as a result of the dmc2 acquisition.

  • 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

    • 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
    • pci global top 10

      2025 Global Top 10: Top Paint and Coatings Companies

      The following is PCI’s annual ranking of the top 10...
      Paint and Coating Market Reports
      By: Courtney Bassett
    • 2025 pci 25

      2025 PCI 25: Top Paint and Coatings Companies

      PCI's annual ranking of the top 25 North American paint...
      Paint and Coating Market Reports
      By: Courtney Bassett
    You must login or register in order to post a comment.

    Report Abusive Comment

    close

    1 COMPLIMENTARY ARTICLE(S) LEFT

    Loader

    Already a Registered User? Sign in now.

    Manage My Account
    • eMagazine
    • eNewsletter
    • Online Registration
    • Subscription Customer Service

    CTT Registration Now Open

    CTT Registration Now Open

    The Coatings Minute: Your Guide to the 2025 Coatings Supplier Handbook

    The Coatings Minute: Your Guide to the 2025 Coatings Supplier Handbook

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

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

    The Coatings Minute: Your Inside Look at PCInnovations

    The Coatings Minute: Your Inside Look at PCInnovations

    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’s $1.4B Divestment Signals Strategy Shift

    PCI voices from the top

    eBook | PCI Voices from the Top

    Mergers and Acquisitions

    RPM Expands Portfolio With Strategic Acquisition



    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 voices from the top ebook

    PCI CASE EBOOK

    Related Articles

    • INDUSTRY NEWS EXTRA: The Bottom Line for 2001
      Results Show Effect of Downturn, but Stronger Growth Trend is Forecast

      See More
    • INDUSTRY NEWS EXTRA: The Economy

      See More
    • NPCA's Industry Pulse Newsletter Analyzes Key Economic Variables Affecting the Paint and Coatings Industry

      See More

    Related Products

    See More Products
    • durability.jpg

      Increasing the Durability of Paint and Varnish Coatings in Building Products and Construction 1st Edition

    • handbook-of-ad-and-surface-

      Handbook of Adhesives and Surface Preparation

    • failiure-analysis-of-paints

      Failure Analysis of Paints and Coatings, Revised Edition

    See More Products

    Events

    View AllSubmit An Event
    • September 5, 2024

      Panel Discussion: Navigating ‘Materials of Concern’ in the Coatings Industry

      On Demand Join us as industry experts from across the coatings value chain collaborate to discuss the debate surrounding these materials, how the restrictions are affecting their business, what innovative replacement products are under development, and what the future holds for some of these highly irreplaceable chemicals.
    View AllSubmit An Event
    ×

    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
      • FINISHING
        • Finishing News
        • Finishing Technologies
        • Finishing Equipment
        • Finishing Today
      • Industrial Coatings
      • Nanotechnology
      • Powder Coatings
      • Solventborne
      • Special Purpose Coatings
      • Sustainability
      • UV Coatings
      • Waterborne
    • 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
      • Classifieds
      • 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
    • SIGN UP!