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PPG Reports 2nd Quarter 2018 Financials

PPG (NYSE:PPG) reported second quarter 2018 net sales of about $4.1 billion, up nearly 9 percent versus the prior year. Net sales in local currencies grew approximately 6 percent year-over-year aided by higher selling prices of more than 2 percent, sales volume growth of more than 3 percent and acquisition-related sales, net of divestitures, of nearly 1 percent. Favorable foreign currency translation improved net sales by more than 2 percent, or about $93 million.

• Net sales of approximately $4.1 billion, up nearly 9 percent versus prior year

• Reported earnings per diluted share from continuing operations of $1.51

• Second quarter adjusted earnings per diluted share from continuing operations of $1.90, up nearly 6 percent from prior year, including benefit of lower tax rate

• Sales volume growth of more than 3 percent

• Continued to achieve higher selling prices; partially offsetting persistent raw material and heightened logistics cost inflation

• Initiated new restructuring program targeting about $85 million in annual cost savings

• Share repurchases of about $460 million in the second quarter and $1.1 billion year to date

“During the quarter, we delivered strong net sales growth in local currencies of about 6 percent,” said Michael McGarry, PPG chairman and chief executive officer. “This growth was achieved through solid volume growth and higher selling prices. Our sales volumes grew more than 3 percent with solid contributions from both of our reporting segments including higher activity in emerging regions…U.S. architectural company-owned stores delivered another strong quarter achieving high-single-digit same-store sales growth…”

“As we look ahead, we currently do not anticipate any relief from inflationary cost pressures in the third quarter. We expect aggregate global economic growth to remain positive with end-use market activity comparable to the second quarter, adjusted for traditionally lower seasonal demand. However, uncertainties exist regarding global trade policies, which may create uneven demand by region and in certain industries. Specific to PPG, we expect that the previously announced architectural customer assortment change will lower our third quarter year-over-year sales volume growth rate by between 120 and 150 basis points. We remain confident that our leading-edge technologies and products, which are bringing value to our customers, will facilitate our growth going forward,” McGarry said.

Architectural coatings – Americas and Asia-Pacific organic sales advanced a mid-single-digit percentage year-over-year, with differences by channel and region. In the U.S. and Canada, same store sales in company-owned architectural stores grew by a high-single-digit percentage. Aggregate sales volumes in the national retail (DIY) accounts and independent dealer channels declined a low-single-digit percentage versus the prior year, including the unfavorable partial quarter impact from a customer assortment change.

Second quarter corporate expenses were lower due to decreased compensation and benefit costs, including lower pension and other post-employment benefit costs stemming from actions that the company has taken in recent years.

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $14.7 billion in 2017. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

https://news.ppg.com/press-release/business-unit/ppg-reports-second-quarter-2018-financial-results

Contact Information

PPG Industries, Inc.
PPG Industries, Inc.

One PPG Place
Pittsburgh, PA, 15272

tele: 412-434-3131
http://www.ppg.com/

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