work to do, including executing our re-
cently approved restructuring program.
We remain confident that we will deliver
the targeted $200 million of annual syn-
ergies over a three-year period, as previ-
ously outlined.”
PPG also announced that its board
of directors approved a $102 million
business restructuring program. The ap-
proved actions are focused on achieving
cost synergies related to the recent North
American architectural coatings acquisi-
tion, including actions in the acquired
business as well as in PPG’s legacy archi-
tectural business. Additionally, smaller
targeted actions were approved for busi-
nesses where market conditions remain
very challenging, most notably protec-
tive and marine coatings and certain
European businesses such as architectural
coatings and fiber glass. The restructur-
ing charge will be included in PPG’s third
quarter 2013 financial results, and it is
comprised of cash charges totaling ap-
proximately $97 million and non-cash
charges of about $5 million. Related cash
outlays of about $60 million are expected
in 2013, with the remainder likely to oc-
cur in 2014.
Asian Paints Announce
Financial Results for Q1
Asian Paints has announced its financial
results for the first quarter ended June
30, 2013.
“The decorative paints business in
India did well considering the challeng-
ing and uncertain macro environment,”
said K.B.S. Anand, managing director
and CEO, Asian Paints Limited. “Paints
volume grew in double digits. Raw mate-
rial prices were by and large stable with
a softening bias, but were affected by the
depreciation of Rupee.”
For the quarter ended June 30, on
consolidation of accounts of the subsid-
iaries and joint ventures of Asian Paints
– net profit of the froup is 275.2 crores
as compared to 288.4 crores in the previ-
ous corresponding quarter. Income from
operations has risen by 11. 6 percent to
2841.1 crores from 2546.1 crores. PBDIT
for the group has increased by four per-
cent to 464.7 crores from 446.6 crores.
Profit before Ttax is 423.9 crores as
compared to 426.2 crores in the previous
corresponding quarter.
Valspar Reports Fiscal 2013
Third-Quarter Results
The Valspar Corporation reported third
quarter 2013 net sales of $1.1 billion,
up one percent versus the prior year.
Reported net income and earnings per
diluted share for the current and prior
year include several nonrecurring items,
which are detailed in the “Reconciliation
of Non-GAAP Financial Measures.”
Third quarter 2013 adjusted net income
and earnings per diluted share, excluding
these nonrecurring items, were $96 million and $1.07 respectively. Third quarter
2012 adjusted net income and earnings
per diluted share were $91 million and
$0.97, respectively.
“We continue to drive strong volume
growth from our new business initia-
tives in the consumer paint, packaging
and wood product lines,” said Gary E.
Hendrickson, chairman and chief execu-
tive officer. “However, sales and earnings
finished slightly below our expectations
for the quarter due to continued macro-
economic headwinds in key general in-
dustrial market segments and certain
international regions. Based on our third
quarter results and the anticipated impact
of these trends, we have updated our an-
nual adjusted EPS guidance to $3.45 to
$3.55. We continue to expect improved
sales and earnings growth in the fourth
quarter, but not at the level we had antici-
pated earlier in the year.”
Net sales in the paints segment in-
creased three percent to $455 million in
the quarter, driven by strength in U.S.
and China. Paints segment adjusted earn-
ings before interest and taxes (EBIT) de-
creased 0.5 percent to $52 million, due
to increased investments in long-term
growth initiatives. Paints segment ad-
justed EBIT margins decreased approxi-
mately ( 40) bps to 11. 5 percent.
Net sales in the coatings segment
increased one percent to $573 million.
Sales growth in packaging, coil and
wood product lines was offset by lower
demand in the general industrial product
line, primarily in coatings for off-road
equipment and shipping containers.
Coatings segment adjusted EBIT
increased three percent to $101
million driven by leverage on increased volumes. Coatings segment adjusted EBIT margins increased in
the quarter by approximately 40 bps to
17. 6 percent.
Henkel Announces Second
Quarter Results
Despite the continued challenging market
environment, Henkel delivered a strong
second quarter, the company reported.
“We significantly increased both sales
and earnings with all our three business
sectors contributing. Our adjusted return
on sales has risen to 15. 4 percent for the
first time,” said Henkel CEO, Kasper
Rorsted. “While all regions reported
growth, once again our emerging markets
made an important contribution. The
share of sales in emerging markets rose
substantially reaching 45 percent for the
first time.”
“We expect the overall economic en-
vironment to remain difficult,” he con-
tinued. “Hence, we will further improve
our competitiveness. We will continue to
adapt, simplify and accelerate our pro-
cesses in order to respond more flexibly
and efficiently to the volatile market envi-
ronment in which we operate.”
Henkel expects organic sales growth
to be between 3 and 5 percent in the full
fiscal year.
At € 4.286 million, Henkel’s sales
for the second quarter 2013 showed
an increase of 1.9 percent versus the
prior-year quarter. Henkel continued to
see strong headwinds from currency effects, mainly coming from Japanese Yen,
U.S. Dollar and Russian Ruble. Organic
sales, which excludes the impact of foreign exchange and acquisitions/divest-ments, rose by 4 percent.
The company reported that all three
business sectors contributed to this solid
performance. Laundry and Home Care
recorded strong organic sales growth
of 5. 8 percent. The Beauty Care business sector achieved a solid organic
growth rate of 2.8 percent. The Adhesive
Technologies business sector also registered solid growth with organic sales rising by 3. 6 percent year on year. CW
