PPG Fourth Quarter Sales Flat; Coatings Earnings Grow 30%
PPG Industries recently reported fourth quarter 2012 net sales of $3.6 billion. Annual sales for 2012 were $15.2 billion, up 2% compared to $14.9 billion in 2011. The company’s full year 2012 net income was $941 million, vs. $1.1 billion the previous year.
“Our record fourth quarter results capped off an exceptional year for the company, driven by excellent operating performance and several significant strategic actions that have accelerated the pace of our portfolio transformation,” said Charles E. Bunch, chairman and CEO. “During the quarter, as we did during the first nine months, we grew our sales and earnings despite moderate overall economic conditions that varied by region and end-use market, and continued negative impacts from currency translation.”
Performance Coatings segment sales for the quarter were $1.2 billion, up 1% compared to the prior year. Segment sales reportedly benefited from continued strength in aerospace demand, high single-digit percentage growth in U.S. architectural coatings sales and modest organic sales gains in automotive refinish. Sales in the quarter were negatively impacted by further weakening in marine new-build activity and lower architectural coatings volumes in emerging regions.
Industrial Coatings segment sales for the quarter were $1.1 billion, up 9% compared to the prior year. Strong volume growth reportedly continued in North America and emerging regions, more than offsetting persistently weak European demand. Volume growth remained the strongest in automotive OEM coatings, with company results continuing to outpace industry growth.
Architectural Coatings – EMEA (Europe, Middle East and Africa) segment sales for the quarter were $465 million, up 4% vs. the prior year. Sales volumes declined 2% and currency translation was negative, but these declines were reportedly countered by increased sales related to the Dyrup acquisition, which added about 4% to segment sales, and improved pricing.
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