logo
Plus   Neg
Share
Email
Comment

PPG Industries Q1 Profit Falls On Charges, Adj. Earnings Top Estimates - Update

Protective and decorative coatings company PPG Industries, Inc. (PPG) reported Thursday a sharp decline in first-quarter profit, reflecting certain non-recurring charges. However, adjusted earnings topped analysts' expectations, benefited by a 6 percent growth in net sales.

The company said it experienced strong growth in U.S. coatings sales helped by strengthening demand in the U.S., end-use markets and growth in emerging regions, which offset weaker European activity. PPG sees further growth opportunities as demand in some of its larger end-use markets continues to recover.

Charles Bunch, chairman and CEO of the company said, "PPG's earnings growth momentum continued during the first quarter, and we achieved a seventh consecutive quarter of record earnings with adjusted earnings per share up about 30 percent versus last year."

In the first quarter, net income attributable to the company plunged to $13 million or $0.08 per share from $228 million or $1.40 per share reported a year ago.

Results for the recent quarter included after-tax charges of $163 million or $1.06 per share for business restructuring, $99 million or 64 cents per share for environmental remediation charges, and $4 million or 3 cents per share for business acquisition-related costs.

Adjusted net income, excluding non-recurring charges, was $279 million or $1.81 per share. On average, 15 analysts polled by Thomson Reuters expected the company to earn $1.69 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 6 percent to $3.75 billion from $3.53 billion a year ago. Analysts estimated revenues of $3.74 billion.

Looking ahead to the second quarter, which the company says its best sales quarter seasonally, it expects year-over-year growth rates in the U.S., to be similar to the first quarter coupled with lower regional natural gas input costs.

The company expects growth in emerging regions to accelerate, supported by higher Chinese industrial activity, while European demand is expected to remain muted. PPG added that it is now implementing restructuring actions focused mainly in this region, with anticipated cost savings of 20 to 25 cents per share in the second half of the year.

PPG is currently trading at $99.61, up $1.14 or 1.16 percent, on a volume of 419 thousand shares on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Google plans to commission three underwater cables in 2019 as part of efforts to expand its cloud business amid stiff competition from rivals Microsoft and Amazon. The three fiber-optic subsea cables will run across different routes. Google noted that it has spent $30 billion to improve its infrastructure over three years. McDonald's Corp. said Tuesday that all of its packaging worldwide will come from renewable, recycled or certified sources by 2025, up from the current figure of 50 percent. The fast food giant also aims to recycle guest packaging in all its restaurants by then, compared with only 10 percent of its restaurants currently. General Electric Co. (GE) will take an after-tax charge of $6.2 billion in its fourth quarter results as part of comprehensive review of its finance arm's insurance portfolio. The after-tax charge will be $7.5 billion when adjusted to the rate following the recent U.S. tax overhaul.
comments powered by Disqus
Follow RTT