PPG Industries (PPG: Quote) reported second quarter profit of $362 million or $2.34 per share versus $340 million or $2.12 per share a year ago.
Adjusted net income for the quarter, excluding nonrecurring charges, was $365 million, or $2.36 per share.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $2.37 per share. Analysts' estimates typically exclude special items.
Net sales declined to $3.96 billion from $3.99 billion in the prior-year quarter. Analysts estimated revenues of $4.15 billion.
"In the second quarter, PPG delivered the highest quarterly earnings per share in company history as a result of continued execution, strong cost discipline and effective cash deployment," said Charles Bunch, PPG chairman and CEO. "These record earnings were achieved despite significantly weaker European and Latin American currency exchange rates and growth that varied by region and end-use market."
"Overall, our sales in local currencies grew in the quarter, led by continued strong organic growth in North America," Bunch noted.
Further, PPG Industries and Georgia Gulf Corp. (GGC: Quote) announced that the boards of directors of both companies have approved definitive agreements under which PPG will separate its commodity chemicals business and then merge it with Georgia Gulf.
The terms of the transaction call for PPG to form a new company by separating its commodity chemicals business through a spinoff or split off, and then immediately merging the business with Georgia Gulf or a Georgia Gulf subsidiary in a Reverse Morris Trust transaction. The merger will result in PPG shareholders receiving approximately 50.5 percent of the shares of the merged company, with existing Georgia Gulf shareholders owning approximately 49.5 percent of the merged company.
The completion of the deal is expected to occur in late 2012 or early 2013.
Following completion of the transaction, the combined company is expected to have annual revenues of approximately $5 billion and be the third-largest chlor-alkali producer and second-largest vinyl chloride monomer producer in North America.
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by RTT Staff Writer
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