PPG Reports Record Fourth-Quarter Sales, Earnings Per Share
PITTSBURGH – PPG Industries reported record sales for the fourth quarter 2010 of $3.4 billion, an increase of 8 percent versus the prior year’s fourth quarter. Reported net income for the quarter increased to $205 million, or $1.24 per share. Fourth quarter 2009 sales were $3.1 billion, and reported net income was $142 million, or 85 cents per share.
PPG’s fourth-quarter 2010 adjusted net income was $207 million, or $1.25 per share. Fourth-quarter 2009 adjusted net income was $144 million, or 86 cents per share. Both years include an after-tax charge of $2 million, or 1 cent per share, reflecting the net increase in the current value of the company’s obligation under its proposed asbestos settlement, which is pending court proceedings.
PPG’s annual sales for 2010 were $13.4 billion, an increase of 10 percent versus 2009 sales of $12.2 billion. PPG’s full-year 2010 adjusted net income was $862 million, or $5.18 per share, compared with full-year 2009 adjusted net income of $485 million, or $2.94 per share. Reported net income for 2010 increased to $769 million, or $4.63 per share. Full-year 2009 reported net income was $336 million, or $2.03 per share.
Performance Coatings segment sales in the fourth quarter 2010 increased $76 million, or 7 percent, versus last year’s fourth quarter as a result of higher selling prices and volumes that improved in every region. Sales were aided by double-digit percentage growth in the aerospace and protective and marine coatings businesses and solid growth in the automotive refinish business. Volumes in the architectural coatings – Americas and Asia/Pacific business were flat. Segment earnings grew $21 million, or 14 percent, to a record $170 million as a result of the volume gains and a lower cost structure.
Industrial Coatings segment sales for the quarter rose $90 million, or 10 percent, versus improving prior-year results. Volume recovery continued in several industrial end-use markets, particularly in the automotive OEM coatings business, where the recovery was supplemented by share gain. Asia/Pacific remained the strongest growth region, as total segment sales in that region surpassed those in the United States and Canada for the quarter. Segment earnings for the quarter were $79 million, a decrease of $10 million from the prior year’s fourth quarter. The benefit from improved volumes, lower costs and pricing did not fully offset raw material cost inflation.
Sales for the Architectural Coatings – EMEA (Europe, Middle East and Africa) segment for the quarter decreased $31 million, or 7 percent, versus the prior year due to negative currency conversion of $28 million and mid-single-digit volume declines, partly countered by solid pricing gains. Segment earnings declined $9 million due to the lower sales volumes.
The Optical and Specialty Materials segment delivered record fourth-quarter sales and earnings. Segment sales for the quarter increased $23 million, or 9 percent, versus the prior year as a result of double-digit percentage volume growth, offset slightly by negative currency conversion. Segment earnings improved $10 million to $57 million, primarily as a result of the higher sales volumes, offset slightly by increased selling and advertising costs to support the sales growth.
Commodity Chemicals segment sales for the quarter increased $70 million, or 23 percent, versus the prior year due to higher pricing. Segment earnings grew $65 million due to the improved pricing, partially offset by higher maintenance costs.
Glass segment sales increased $35 million, or 16 percent, compared with the prior year as a result of improved volumes and pricing. Segment income was $29 million, an improvement of $28 million due to lower manufacturing costs, higher volumes and the impact of higher pricing.
PPG’s fourth-quarter 2010 adjusted net income was $207 million, or $1.25 per share. Fourth-quarter 2009 adjusted net income was $144 million, or 86 cents per share. Both years include an after-tax charge of $2 million, or 1 cent per share, reflecting the net increase in the current value of the company’s obligation under its proposed asbestos settlement, which is pending court proceedings.
PPG’s annual sales for 2010 were $13.4 billion, an increase of 10 percent versus 2009 sales of $12.2 billion. PPG’s full-year 2010 adjusted net income was $862 million, or $5.18 per share, compared with full-year 2009 adjusted net income of $485 million, or $2.94 per share. Reported net income for 2010 increased to $769 million, or $4.63 per share. Full-year 2009 reported net income was $336 million, or $2.03 per share.
Performance Coatings segment sales in the fourth quarter 2010 increased $76 million, or 7 percent, versus last year’s fourth quarter as a result of higher selling prices and volumes that improved in every region. Sales were aided by double-digit percentage growth in the aerospace and protective and marine coatings businesses and solid growth in the automotive refinish business. Volumes in the architectural coatings – Americas and Asia/Pacific business were flat. Segment earnings grew $21 million, or 14 percent, to a record $170 million as a result of the volume gains and a lower cost structure.
Industrial Coatings segment sales for the quarter rose $90 million, or 10 percent, versus improving prior-year results. Volume recovery continued in several industrial end-use markets, particularly in the automotive OEM coatings business, where the recovery was supplemented by share gain. Asia/Pacific remained the strongest growth region, as total segment sales in that region surpassed those in the United States and Canada for the quarter. Segment earnings for the quarter were $79 million, a decrease of $10 million from the prior year’s fourth quarter. The benefit from improved volumes, lower costs and pricing did not fully offset raw material cost inflation.
Sales for the Architectural Coatings – EMEA (Europe, Middle East and Africa) segment for the quarter decreased $31 million, or 7 percent, versus the prior year due to negative currency conversion of $28 million and mid-single-digit volume declines, partly countered by solid pricing gains. Segment earnings declined $9 million due to the lower sales volumes.
The Optical and Specialty Materials segment delivered record fourth-quarter sales and earnings. Segment sales for the quarter increased $23 million, or 9 percent, versus the prior year as a result of double-digit percentage volume growth, offset slightly by negative currency conversion. Segment earnings improved $10 million to $57 million, primarily as a result of the higher sales volumes, offset slightly by increased selling and advertising costs to support the sales growth.
Commodity Chemicals segment sales for the quarter increased $70 million, or 23 percent, versus the prior year due to higher pricing. Segment earnings grew $65 million due to the improved pricing, partially offset by higher maintenance costs.
Glass segment sales increased $35 million, or 16 percent, compared with the prior year as a result of improved volumes and pricing. Segment income was $29 million, an improvement of $28 million due to lower manufacturing costs, higher volumes and the impact of higher pricing.
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