PPG Industries reported on 21 July 2005 net income for the 2Q 2005 of USD 231 million, or USD 1.34 a share, including aftertax charges of USD 12 million, or USD 0.07 a share, for a previously announce…
PPG Industries reported on 21 July 2005 net income for the 2Q 2005 of USD 231 million, or USD 1.34 a share, including aftertax charges of USD 12 million, or USD 0.07 a share, for a previously announced debt refinancing, and USD 2 million, or USD 0.01 a share, to reflect the net increase in the current value of the company“s obligation under its asbestos settlement agreement reported in May 2002. Sales were USD 2.66 billion, a record for any quarter. Sales of coatings and chemicals both increased (7% and 27% respectively) while glass sales were down 1%. The 2Q 2005 result compares with 2Q 2004 net income of USD 187 million, or USD 1.08 a share, which includes an aftertax charge of USD 6 million, or USD 0.03 a share, to reflect the net increase in the value of the company“s obligation under the asbestos settlement agreement. Sales for the 2Q of 2004 were USD 2.43 billion. For the first six months of 2005, PPG recorded net income of USD 326 million, or USD 1.89 a share, which includes aftertax charges of USD 91 million, or USD 0.52 a share, for a non-recurring legal settlement; USD 12 million, or USD 0.07 a share, for debt refinancing; and USD 7 million, or USD 0.04 a share, to reflect the increase in the value of the company“s obligation under the asbestos settlement agreement. Sales for the 1H of 2005 were USD 5.15 billion. For the first six months of 2004, PPG recorded net income of USD 306 million, or USD 1.77 a share, which includes an aftertax charge of USD 9 million, or USD 0.05 a share, to reflect the increase in the value of the company“s obligation under the asbestos settlement agreement. Sales for the 1H of 2004 were USD 4.69 billion. “We not only generated record sales for any quarter, we also enjoyed one of our best quarterly earnings performances ever,” said Charles E. Bunch, chairman and chief executive officer. “In addition, we made progress in restoring our coatings margins and expect this improvement to accelerate the remainder of the year”. “While the global economy shows signs of moderating, we see continued strength in our coatings and chemicals segments, which achieved record sales each of the past two quarters. This measurable proof validates our earnings growth strategies and positions PPG to continue generating shareholder returns”. Coatings sales increased USD 96 million, or 7%, as a result of improved selling prices across all businesses except automotive, the impact of foreign currencies and higher volumes in architectural, aerospace and automotive. Operating earnings were down USD 14 million largely because of the impact of inflation, primarily raw materials, which exceeded the benefits of higher selling prices, higher volumes, slightly better costs and the impact of foreign currencies. Glass sales fell USD 3 million, or 1%, as lower selling prices and lower volumes across all businesses except automotive replacement glass exceeded the impact of foreign currencies. Despite improved manufacturing efficiencies, operating earnings were down USD 18 million as a result of inflation, including higher energy costs; lower selling prices; and lower other income. Chemicals sales increased USD 134 million, or 27%, on higher selling prices for chlor-alkali products, higher volumes in optical and the impact of foreign currencies. Operating earnings were up USD 102 million primarily due to higher selling prices and improved volumes. The increases exceeded the impact of higher energy and other inflation costs and higher overhead expenses, related primarily to optical advertising.