Coating, glass and chemical products company PPG Industries Inc. (PPG) Thursday reported profit for the first quarter, compared to a loss in the previous year, helped by higher volume, 12% increase in sales and lower exceptional charges. On an adjusted basis, earnings per share increased significantly and came in above Street estimates. Further, the company said it took a charge of $85 million for the quarter, towards recently implemented healthcare legislation.
Quarterly, net income attributable to the company was $30 million or $0.18 per share, compared to a loss of $111 million or $0.68 per share in the previous year. Latest quarter results included aftertax charges of $85 million, or $0.51 per share, related to a change in U.S. tax law, while comparable quarter results included aftertax charges of $141 million, or $0.86 per share, for business restructuring.
Excluding items, net income increased significantly to $117 million or $0.70 per share from $32 million or $0.19 per share in the year-ago quarter. On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
The Pittsburgh, Pennsylvania-based company's net sales grew 12% to $3.13 billion from $2.78 billion recorded in the prior year. Seven analysts estimated revenues of $3.05 billion for the quarter.
Commenting on the results, Chairman and chief Executive Officer Charles Bunch said, "Throughout the first quarter, we continued to experience a moderate recovery in several of the global end-use markets we serve."
The company operates through six segments: Performance Coatings division, Industrial Coatings segment, Architectural Coatings - Europe, Middle East and Africa segment, Optical and Specialty Materials segment, Commodity Chemicals segment and Glass segment.
At Industrial Coatings segment, sales increased 39% to $893 million as volume growth exceeding 30%, with higher year-over-year volumes in all businesses and regions. Foreign currency also aided sales.
Performance Coatings segment's sales rose 4% year-over-year to $965 million, due to higher selling prices and favorable foreign currency. Architectural Coatings - Europe, Middle East and Africa segment sales were up 7% to $436 million from a year ago, due mainly to stronger foreign currencies.
Sales at Optical and Specialty Materials segment were $284 million, up 16% year earlier, helped by double-digit percentage volume growth and foreign currency, while Commodity Chemicals segment sales dropped 9% to $328 million, impacted by decline in year-over-year selling prices, partially offset by improving volumes.
Glass segment sales increased to 12% year-over-year to $220 million, helped by improved volumes and foreign currency, which were partially offset by lower pricing including reduced energy surcharges.
In the preceding fourth quarter, net income more than doubled to $142 million or $0.85 per share from $71 million or $0.43 per share in the same quarter last year. Fourth quarter sales were $3.1 billion, down 2% from $3.19 billion in the year-ago quarter, adversely affected by its end-use markets, amid the global recession.
Looking ahead to the rest of the year, the company said several businesses that have been slower to recover, such as Commodity Chemicals, are beginning to exhibit signs of improvement that, combined with its continued cost-reduction and execution focus, is expected to provide the company with a clear path for continued earnings recovery. The company added that it is now entering into a historically best quarter for it with a very low cost position and growing momentum.
Separately, PPG declared a regular quarterly dividend of $0.54 per share, payable June 11 to shareholders of record May 10. The company said it is 447th consecutive dividend payment.
PPG is currently trading at $68.92 per share, down $0.59 per share or 0.85% on the NYSE. In the past 52-week period, share had been trading in a range of $41.09 to $69.75 on a three-months average volume of 1.38 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.