PPG has record sales, lower earnings
PPG, maker of Pittsburgh Paints as well as other consumer and industrial products, posted sales of $3.2 billion in sales for the second quarter, a record figure, according to the company. Sales rose 14.2 percent from $2.8 billion in last year’s second quarter.
Net earnings fell, however, 11.1 percent to $249 million from $280 million last year. The company incurred a one-time charge of $6 million for costs related to an asbestos settlement agreement. Additionally, PPG saw its tax rate increase in this year’s second quarter.
Charles Bunch, PPG’s chairman and CEO, said the higher sales volume was driven by further market penetration in the company’s coatings segment, as well as growth in its optical and specialty materials segments.
In May, PPG acquired the paint and coatings assets of Shanghai Sunpool Building Materials. Last summer, the company acquired California’s Spectra-Tone paint and Australia’s Protec coatings business.
“Also supplementing our organic results is our continuing success in integrating last year's acquisitions, which not only are aiding our sales growth but also delivered double-digit operating margins this quarter,” Bunch said.
Pittsburgh-based PPG is a major North American supplier of architectural coatings, manufacturing paints and stains under the Pittsburgh Paints, Olympic, Porter, Monarch and Lucite brands. PPG also is a global supplier of coatings for the automotive, aerospace, industrial and packaging industries.