PPG Industries recently reported third quarter 2012 net sales of $3.8 billion, the same figure reported in the prior year’s third quarter. Net income for the quarter was $339 million, down compared to last year’s third quarter net income of $311 million. Adjusted net income for the quarter was $348 million.
The Performance Coatings segment’s sales for the quarter were $1.2 billion, flat with the prior year. The negative impacts of foreign currency translation and slightly lower volume were reportedly offset by sales increases from acquisitions and improved selling prices. Volumes rose modestly in the U.S. and were down in all other regions.
Industrial Coatings segment sales for the quarter were $1.1 billion, up 5% or $51 million vs. the prior year. Strong volume growth, pricing and acquisitions reportedly added to sales, but these were partly offset by notable currency translation that reduced sales by approximately $50 million.
Architectural Coatings – EMEA (Europe, Middle East and Africa) segment sales for the quarter were $564 million, down $9 million or 2%, compared to the prior year.
“We delivered record third quarter earnings per share despite uneven demand among regions and end-use markets,” said Charles E. Bunch, chairman and CEO. “Our coatings segments drove the record performance on improved local currency sales and 20% earnings growth.
“North American sales activity remained strongest, highlighted by excellent automotive OEM and refinish coatings growth,” he said. “Business levels in Asia and Latin America were flat in aggregate but mixed by end-use market, including growth in our automotive OEM and packaging coatings businesses that was offset by weakening coatings demand due to lower marine new builds. European volume remained below the prior-year quarter, but the trend improved notably in comparison with second quarter year-over-year results due to less customer inventory destocking. Sales declined in our Optical and Specialty Materials segment in all regions due to customer inventory management actions stemming from lower growth rates in the optical channel and in anticipation of the upcoming introduction of our next-generation TRANSITIONS(R) lenses.”
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