PPG Industries recently reported sales of $3.5 billion for the first quarter of 2011, an increase of 13% vs. the prior year’s first quarter. The company posted double-digit percentage sales increases in each major region, and all reporting segments achieved higher sales volumes and pricing. Reported net income for the quarter increased to $228 million; first quarter 2010 sales were $3.1 billion.
Glass segment sales increased $38 million, or 17%, compared with the prior year, as a result of improved volumes and fiber glass pricing. Segment income was $26 million, an improvement of $29 million due to the impact of higher volumes and pricing, as well as lower manufacturing costs and improved equity earnings.
Performance Coatings segment sales in the first quarter of 2011 increased $87 million, or 9%, vs. last year’s first quarter. This was due to higher selling prices and volumes that improved in every region. Sales were aided by strong sales growth in the aerospace and automotive refinish businesses. The protective and marine coatings and architectural coatings for the Americas and Asia-Pacific businesses also achieved sales gains. Segment earnings grew $12 million to a first quarter record of $139 million, as volume and pricing gains and a lower cost structure offset increased raw material costs.
Industrial Coatings segment sales for the quarter rose $132 million, or 15%, compared to the prior year’s results. Volumes continued to recover in each region and in many end-use markets. Each business in the segment also realized higher pricing and favorable currency translation that modestly aided sales. Segment earnings for the quarter were $116 million, an increase of $15 million from the prior year’s first quarter due to the volume improvement. The adverse effect of raw material cost inflation was partially countered with higher pricing, aggressive cost management and additional efforts to expand raw material sourcing.
Sales for the Architectural Coatings–EMEA segment for the quarter increased $35 million, or 8%, vs. the prior year as a result of positive volumes and pricing. Segment earnings were $12 million for the quarter, an increase of $1 million from the prior year’s first quarter on the improved volumes. Raw material cost inflation is being combated by higher selling prices and product reformulation efforts, including using different polymer technologies and Chinese-produced titanium dioxide.
“We’ve continued our strong earnings momentum and have posted our third consecutive quarterly record,” said Charles E. Bunch, chairman and CEO. “Each of our reporting segments delivered higher year-over-year earnings driven by continued volume growth from a broadening global industrial recovery, including strengthening conditions in Europe.”
For more information,www.ppg.com.
PPG First Quarter Sales up 13%
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