PPG: sharp increase in 1Q earnings

PPG Industries has reported a sharp increase in first-quarter earnings, with double-digit sales growth, higher pricing and cost controls.
Net income was USD 228 million, or USD 1.40 per diluted share…

PPG Industries has reported a sharp increase in first-quarter earnings, with double-digit sales growth, higher pricing and cost controls. Net income was USD 228 million, or USD 1.40 per diluted share, compared to USD 30 million, or 18 cents per diluted share, in the same quarter a year ago. Sales were up 13% to USD 3.53 billion. “Each of our reporting segments delivered higher year-over-year earnings driven by continued volume growth from a broadening global industrial recovery, including strengthening conditions in Europe,” said Chairman and CEO Charles E. Bunch. He expects similar economic conditions and higher pricing in the second quarter. “We continue to confront raw material cost inflation,” Bunch said. The company continues to consider ways to invest its cash to grow earnings and that PPG expects to announce several small- to medium-sized acquisitions over the next six to nine months, Bunch said. PPG said it will raise its dividend 2 cents to 57 cents per share, payable on 10 June to shareholders of record 10 May.