PPG's net income drops $31m but sales on a high

19 July 2007 15:36  [Source: ICIS news]

LONDON (ICIS news)--PPG Industries' net income for the second quarter was down $31m on the same period for 2006 at $249m, even though sales had reached a record high, the company announced on Thursday.

 

For the first six months of 2007 net income for the paints, coatings, chemicals and optical materials company was also down year-on-year by $21m (€15m).

 

Production costs and sales costs, which were disproportionately higher than for the period and had the biggest impact on the net income.

 

Commodity Chemicals segment earnings were down by $29m even though sales had increased by $8million or 2%.

 

The Pittsburgh, Pennsylvania-based company said this was also because of lower pricing and higher manufacturing and natural gas costs.

 

The Performance and Applied Coatings segment earnings grew by $14m and the Industrial Coatings segment earning were up by $5m.

 

The company attributed this to increased sales from acquisitions, improved sales volumes, and the positive impact of stronger foreign currencies and increased selling prices.

 

The company had record sales for the second quarter at $3.2bn.

 

PPG chairman and chief executive Charles E Bunch said in a statement that the company’s strong performance in sales could be attributed to the growth of the company over the last three year and acquisitions made last year.

 

“Our record-setting overall performance was achieved despite transitory operating issues in our commodity chemicals business that hindered our ability to sell into a strong chlor-alkali market,” Bunch said.

 

($1 = €0.73)

By: Lucy Craymer
+44 20 8652 3214

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