PPG Industries (PPG) Tops Q2 EPS by 3c

PPG Industries (NYSE: PPG) reported Q2 EPS of $1.67, $0.03 better than the analyst estimate of $1.64. Revenue for the quarter came in at $4.1 billion versus the consensus estimate of $4.16 billion.

“We delivered all-time-record adjusted earnings per share, up 18 percent, supported by second quarter earnings records in each of our coatings segments and expanded year-over-year earnings in our glass segment,” said Charles E. Bunch, PPG chairman and chief executive officer. “We achieved these records despite the significant impact of unfavorable foreign currency translation, and the records demonstrate the strength of our transformed business portfolio, our strong operational focus and the benefits from our continuing cash deployment.

“Sales volumes grew 1 percent year-over-year, similar to the first quarter, reflecting modest global economic growth. Regionally, in comparison with last quarter, our growth rates improved in Europe and the U.S., moderated in Asia and remained unfavorable in South America,” Bunch said.

“We achieved our strongest organic sales growth in our automotive OEM (original equipment manufacturer), packaging and automotive refinish coatings businesses. This sales growth was supplemented by acquisitions, primarily our Comex acquisition, which continued to deliver excellent performance with year-over-year organic sales growth of high-single-digit percentages,” Bunch added.

“Looking ahead, we anticipate global economic growth to continue but remain uneven,” Bunch said. “We will continue our heritage of aggressive cost management, which includes execution of the restructuring actions we announced in April. Despite modest economic growth, we anticipate increased benefits from a lower cost structure and higher earnings leverage on incremental volume growth. Also, based on current foreign exchange rates and the seasonality of our businesses, we expect negative foreign currency translation impacts to remain sizable but to moderate in the second half of the year.

“Lastly, we remain committed to and on track with our previously announced earnings-accretive cash deployment targets. Year-to-date, we have closed or announced business acquisitions with an aggregate purchase price of about $400 million, and we have repurchased $350 million in PPG stock,” Bunch concluded.

For earnings history and earnings-related data on PPG Industries (PPG) click here.

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