PPG Reports Increased Net Sales for Quarter
PITTSBURGH – PPG Industries reported record second quarter 2014 net sales from continuing operations of $4.1 billion, up $199 million, or 5%, versus the prior year. Second quarter 2014 reported net income from continuing operations was $393 million, or $2.80 per diluted share. Second quarter 2014 adjusted net income from continuing operations was $398 million, or $2.83 per diluted share, which excludes $3 million after-tax, or 2 cents per diluted share, for pension settlement costs and $2 million after-tax, or 1 cent per diluted share, for acquisition-related costs.
Second quarter 2013 reported net income and earnings per diluted share from continuing operations were $318 million and $2.19, respectively. Adjusted net income from continuing operations was $331 million, or $2.28 per diluted share, and excluded acquisition-related costs of $13 million, or 9 cents per diluted share.
Performance Coatings segment net sales for the quarter were $2.3 billion, up $84 million, or 4%, year-over-year. The segment achieved sales growth in all major regions except Latin America, primarily Brazil. Automotive refinish and aerospace continued to deliver higher sales, reflecting strong end-use market conditions. North American architectural coatings sales grew modestly, with results differing by distribution channel. Architectural coatings – EMEA (Europe, Middle East and Africa) sales volumes were up low-single-digit percentages versus an improving trend in the prior-year period, as demand recovery broadened in the region but remained uneven. Aggregate protective and marine coatings sales were down slightly as protective coatings volume growth was offset by weaker sales in the marine new-builds market. The marine decline was slight in comparison with recent periods. Segment earnings of $373 million were up $49 million, or 15%, as a result of the increase in net sales and additional realization of acquisition-related cost synergies.
Industrial Coatings segment net sales for the quarter were $1.5 billion, increasing $95 million, or 7%, over the prior-year period. Volume growth of 7% accounted for the net sales change, with volume improvement realized in all regions. Automotive original equipment manufacturer (OEM) coatings delivered higher volumes in all regions, growing in aggregate by high-single-digit percentages that surpassed a global industry demand growth rate of about 2%. The industrial coatings and specialty coatings and materials businesses also delivered solid volume growth, reflecting increased strength in certain end-use markets and emerging countries such as China and India. Packaging coatings sales were weaker due to lower European volume. Total segment earnings for the quarter were $257 million, up $39 million, or 18 percent, year-over-year as a result of the higher volumes supplemented by manufacturing cost improvements.
Glass segment net sales were $289 million for the quarter, up $20 million, or 7%, year-over-year. Segment sales volume grew 5%, with comparable rates in both businesses.