PPG posts strong Q4 sales
PPG, the paint and coatings manufacturer, reported fourth quarter 2017 net sales of approximately $3.7 billion, up nearly 8% from 2016 net sales of $3.4 billion.
For the full-year 2017, PPG posted net sales from continuing operations of approximately $14.8 billion, up more than 3%, versus sales of $14.3 billion in 2016.
PPG also reported a fourth quarter net income from continuing operations of $184 million, nearly double a net income from continuing operations of $91 million in the fourth quarter 2016. The company’s 2017 full-year reported net income from continuing operations was $1.4 billion, soaring compared to a net income of $547 million in 2016.
Sales in PPG’s performance coatings segment, including consumer house paint, automotive refinishes, and aerospace products, were $2.1 billion during the quarter, up 7% over the prior year. Industrial coatings sales grew 8% to $1.6 billion for the quarter.
“In the fourth quarter, we delivered solid and balanced sales growth in each major region, and both reporting segments achieved at least 2% sales volume growth,” said Michael McGarry, PPG chairman and CEO.
The Pittsburgh-based company also reported that it will spend at least $2.4 billion on acquisitions and share repurchases in 2018.
Starts step back in December
The year of residential construction ended with a dud in December. Housing starts slipped to a seasonally adjusted annual rate of 1,192,000 — down 8.2% from the revised November estimate.
Single-family starts in December were at a pace of 836,000 — down 11.8% from the revised November figure. Single-family building permits were up 1.8%.
Compared to a year ago, December’s rate of total starts were down 6.0%. And for those looking for bright spots from a dreary report, single-family starts increased 3.5% year-over-year.
Despite the variety of declines contained in Thursday morning’s report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the preliminary 12-month total for 2017 housing starts — not the rate, but the actual number — rose to 1,202,000. That’s 2.4% above the 2016 figure of 1,173,800.
On a regional basis, the government data showed the following for December’s SAAR:
Year over year change
- Northeast — down 1.1%
- Midwest — down 19.8%
- South — up 2.8%
- West — up 12.0%
- Northeast — down 4.3%
- Midwest — down 2.2%
- South — down 14.2%
- West — down 0.9%
View the Census data here.