PPG has record sales, lower earnings
PPG, maker of Pittsburgh Paints as well as other consumer and industrial products, posted sales of $3.2 billion in sales for the second quarter, a record figure, according to the company. Sales rose 14.2 percent from $2.8 billion in last year’s second quarter.
Net earnings fell, however, 11.1 percent to $249 million from $280 million last year. The company incurred a one-time charge of $6 million for costs related to an asbestos settlement agreement. Additionally, PPG saw its tax rate increase in this year’s second quarter.
Charles Bunch, PPG’s chairman and CEO, said the higher sales volume was driven by further market penetration in the company’s coatings segment, as well as growth in its optical and specialty materials segments.
In May, PPG acquired the paint and coatings assets of Shanghai Sunpool Building Materials. Last summer, the company acquired California’s Spectra-Tone paint and Australia’s Protec coatings business.
“Also supplementing our organic results is our continuing success in integrating last year’s acquisitions, which not only are aiding our sales growth but also delivered double-digit operating margins this quarter,” Bunch said.
Pittsburgh-based PPG is a major North American supplier of architectural coatings, manufacturing paints and stains under the Pittsburgh Paints, Olympic, Porter, Monarch and Lucite brands. PPG also is a global supplier of coatings for the automotive, aerospace, industrial and packaging industries.
BlueLinx and CCA Global form partnership
BlueLinx Holdings, one of the industry’s leading building materials distributors, has entered into a logistics partnership with CCA Global Partners, a $10.2 billion organization of flooring retailers, buying groups and other affiliates.
Under the long-term agreement, BlueLinx will deliver CCA Global’s private label flooring line, called Global Direct, to the company’s nationwide network of more than 2,300 retailers. Utilizing its sales force, BlueLinx will create demand for the Global Direct flooring line as well as provide customer service, manage inventory and accounts receivable.
CCA Global will continue to source and own the inventory, which includes approximately 100 skus of solid and engineered wood, laminate and cork flooring. BlueLinx has exclusive rights to distribute the CCA Global Direct flooring line, including delivery of cartons, pallets, truckloads and direct containers.
“This is a ground breaking relationship for CCA Global and an innovative development for our industry,” said Jim Gould, CCA Global chief product officer. “We have worked with BlueLinx for the past year and have been impressed with their capabilities. Our new, expanded relationship allows us to globally source products and leverage BlueLinx’s expertise to manage the sales and inventory process across America, providing just-in-time local delivery.”
George Judd, BlueLinx president and chief operating officer, noted some additional opportunities for his Atlanta-based firm. “BlueLinx is well positioned to offer CCA Global business owners ancillary products that accompany the sale of flooring products, including mouldings, underlayment, fasteners and tools, as well as unfinished hardwood,” he said.
IKEA plans ‘sleepover’ promotion
IKEA is planning a special promotion at an Oslo, Norway, location during which shoppers will be able to spend the night in specially furnished rooms during the week of July 23-27, according to a report by the AFP.
Shoppers will be able to reserve rooms free-of-charge decorated as a bridal suite, luxury suite, a dormitory with bunks and family rooms.
IKEA has dubbed the area the IKEA Hostel, and guests will be able to check in at 10 p.m., one hour before the store closes. Guests will be allowed to take home bathrobes and their bedsheets.
“It will be like an alternative hostel,” company spokesman Frode Ullebust told the AFP. Ullebust added it is the first time IKEA has tried the promotion.