PPG’s Q1 net profit falls steeply to $13m on non-recurring charges

19 April 2012 14:09  [Source: ICIS news]

LONDON (ICIS)--PPG Industries’ first-quarter net profit in 2012 fell steeply to $13m from $228m in the same quarter last year, after the group's earnings were dented by non-recurring charges, the US chemicals, coatings and materials firm said on Thursday.

PPG’s adjusted net income for the quarter excluding the non-recurring charges was $279m (€212m).

Earnings during the quarter ended 31 March 2012s include after-tax charges of $163m for business restructuring, $99m for environmental remediation charges, and $4m for business acquisition-related costs, it said.

The group’s net sales for the first quarter were $3.75bn, an increase of 6.2% compared with the same period last year, following stronger demand in the US in most end-use markets.

“PPG’s earnings growth momentum continued during the first quarter, and we achieved a seventh consecutive quarter of record earnings with adjusted earnings per share up about 30% versus last year,” said Charles Bunch, PPG chairman and CEO.

“In the quarter, we benefited from strengthening demand in the United States in most end-use markets and growth in emerging regions, which offset weaker European activity,” he added.

Looking ahead, Bunch said the second quarter is typically the group’s best sales quarter seasonally, and he expects year-on-year growth rates in the US to be similar with the first quarter coupled with lower regional natural gas input costs.

“We anticipate that growth in emerging regions will accelerate, supported by higher Chinese industrial activity. We expect European demand to remain muted, and we are now implementing restructuring actions focused mainly in this region, with anticipated cost savings of 20-25 cents per share in the second half of the year,” he added.

($1 = €0.76)

By: Franco Capaldo
+44 (0)20 8652 3214

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