PPG's net income rises 112% on acquisitions, sales

18 October 2007 15:40  [Source: ICIS news]

HOUSTON (ICIS news)--US coatings and specialty chemicals company PPG has posted third-quarter net income of $191m, up 112% year on year due to higher sales, recent divestitures and acquisitions, the company said. 

Overall, third-quarter sales reached $2.8bn, up 12% from $2.5bn in the same period a year ago, PPG said.

"Our global businesses enable us to continue to focus on creating shareholder value and improving returns," said Charles Bunch, PPG's CEO.

Third-quarter sales in the company's segment for performance and applied coatings rose $163m, or 20%, from the same time last year, the company said. PPG attributed these increases to acquisitions, higher sales prices, higher sales volumes and strong foreign currencies.

Third-quarter sales in the company's industrial coatings segment rose $90m year on year, or 11%, due to higher sales volumes and stronger foreign currencies, PPG said.

Third-quarter sales in the company's segment for optical and specialty materials rose $27m, or 12%, from the same time last year, due to higher sales volumes and stronger foreign currencies, the company said.

Third-quarter sales in the company's segment for commodity chemicals rose $29m year on year, or 8%, due to higher volumes, the company said. PPG's glass segment reported that its third-quarter sales rose by $10m, or 3%, due to higher volumes and stronger foreign currencies.

The company's earnings grew despite the slowdown in the North American economy, said Bunch.

"Looking ahead, we expect the North American economy to soften further," he added.

"Equally important to PPG, the economies outside of North America will continue to provide consistent opportunities for solid growth," he said.

To make the most of the changing business climate, PPG would continue to make changes to its portfolio, Bunch said.

"These pending transactions will dramatically enhance our focus on coatings and optical and specialty products and significantly shift our geographic presence," Bunch said in his statement. "When these deals are completed, more than 50% of our sales will be outside the US and Canada."

The company has recently acquired coatings company SigmaKalon and sold off its auto glass and fine chemicals businesses.

 

By: Al Greenwood
+1 713 525 2653

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