PPG Q1 net income almost halves to $1.26bn, sales up 17% to $3.6bn

17 April 2014 14:05 Source:ICIS News

LONDON (ICIS)--US-based PPG industries Q1 net income fell 48% compared to the same period in 2013, although sales grew 17% year on year in the quarter to $3.64bn, the company said on Thursday.

In the first quarter last year, the company reported a $2.2bn non-recurring one-off gain from discontinued operations, following the the separation of its commodity chemical business and subsequent merger with a subsidiary of Georgia Gulf into a new company, named Axiall, it said.

In the corresponding quarter 2014, net income from discontinued operations included historical operating results for PPG’s former interest in the Transitions Optical joint venture and its sunlens business, and a net gain on these divestitures of $946m.

Net income from continuing operations over the first quarter grew strongly to $277m from $191m in the first quarter of 2013, said PPG

Sales for the period rose in all the company’s segments, with performance coatings' sales up 27% year on year to $2.0bn, industrial coatings’ rose 7% to $1.4bn and sales in PPG's glass segment increasing 4% to $266m.

“We achieved year-over-year global volume growth of 5%, our highest level in three years. Additionally, growth rates accelerated in each region versus recent quarters, including in Europe, where our volumes grew 5% as we benefited from the early stages of that region’s economic recovery,” said Charles Bunch, CEO of PPG.

By Jonathan Lopez