US PPG posts Q2 sales up 42% on higher prices

17 July 2008 14:55  [Source: ICIS news]

TORONTO (ICIS news)--PPG Industries posted a 42% year-on-year surge in sales for the second quarter largely because of higher prices and a major coatings acquisition, but net income was flat, the US chemicals and coatings producer said on Thursday.

 

Sales were $4.47bn (€2.82bn), up from $3.15bn. Net income was up $1m from the same period last year at $250m, including one-time charges of $19m.

 

Segment income for the three months ended 30 June was $525m, up 18% compared with $446m in the 2007 second quarter.

 

The results were achieved despite continued inflationary pressures and steep recessions in several US end-markets, said CEO Charles Bunch.

 

Bunch highlighted three performance drivers during the quarter - 25% earnings in its core coatings and optical and specialty materials business, solid earnings within commodity chemicals and one of the largest quarterly increases in its selling prices in the past several years.

 

“Looking ahead, we expect our growth to be sustained, due in part to these same factors,” Bunch said.

 

Announced price increases in PPG’s commodity chemicals and other businesses were being implemented to offset further inflationary pressures, he added.

 

($1 = €0.63)

 

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By: Stefan Baumgarten
+1 713 525 2653

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