PPG reports sales up in fourth quarter
PPG Industries reported net sales for the
fourth quarter 2011 of $3.5 billion, an increase of four percent versus the prior
year’s fourth quarter. Net income for the
quarter increased to $216 million, or $1.39
per diluted share. Fourth quarter 2010 net
sales were $3.4 billion, and net income was
$205 million, or $1.24 per diluted share.
Performance Coatings segment sales
for the quarter were $1.1 billion, up $34
million versus the prior year. Higher selling
prices were realized in each business, while
segment volumes declined two percent ver-
sus last year. The aerospace business con-
tinued to deliver excellent growth.
Automotive refinish volumes fell modestly
due to customer inventory management
and softer European economic conditions.
U.S. architectural coatings sales improved,
including company-owned same-store
sales gains of high-single-digit percentages,
due to higher pricing, while volumes re-
mained flat. Architectural coatings vol-
umes in emerging regions declined by mid-
to high-single-digit percentages, including
lower demand in China, and marine vol-
umes declined by mid-single-digit percent-
ages due to reduced shipbuilding activity.
Segment earnings were down $30 million
from the prior year due primarily to the
lower marine and architectural coatings
results, including the lower activity levels,
higher inflation levels versus pricing and
higher costs. The cost increase included
higher year-over-year marine customer
claims expense and additional selling and
marketing costs in architectural coatings.
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