18 October 2012 14:04 [Source: ICIS news]
HOUSTON (ICIS)--PPG Industries' third-quarter net income rose 9% year on year to $339m (€258m), driven by cost savings and a strong performance by its coatings business, the US-based chemicals and coatings firm said on Thursday.
However, PPG’s sales for the three months ended 30 September remained flat at $3.8bn, it said.
PPG's coatings segments drove third-quarter performance on improved local currency sales and 20% earnings growth, CEO Charles Bunch said.
At the same time, PPG continued its "aggressive focus on cost reduction", with the resulting improved cost performance supporting third-quarter earnings growth, Bunch added.
Improvements in manufacturing costs were coupled with savings from the group's restructuring actions, he said. Meanwhile, the rate of raw material inflation moderated, compared with previous quarters, he added.
Regionally, PPG’s North American sales remained strongest, driven by growth in the automotive original equipment manufacturer (OEM) and refinish coatings sectors.
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European volumes remained below the prior-year quarter, but the trend improved sequentially from the second quarter because of less customer inventory destocking, he said.
Bunch also said that PPG’s plan to separate its commodity chemicals business and merge it with
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