PPG posts flat Q4 sales
The paint manufacturer’s profits climb in fourth quarter but lag for the year.
PPG, the Pittsburgh, Pa.-based paint and coatings manufacturer, reported fourth quarter 2019 net sales were nearly flat at $3.67 billion compared to sales of $3.65 billion for the fourth quarter 2018.
Sales for the year fell 1.4% to $15.15 billion from sales of $15.34 billion in 2018.
Profits in the fourth quarter surged, however, as PPG reported a net income from continuing operations of $295 million, rising more than 15% from a net income of $256 million for the same period a year ago.
For the full year, PPG reported a net income from continuing operations $1.24 billion falling 7.4% from a net income of 1.34 billion in 2018.
The bottom line: Sales and profits slip for the full year, but PPG’s net income surges 15% in Q4.
What the CEO said: “Strategically, we completed several acquisitions during the year including Whitford, Hemmelrath, Dexmet, and Texstars. Annualized revenue of the acquisitions we have announced since December 2018 is approximately $500 million, of which about $100 million is in the Asia-Pacific region. We are pleased to welcome these businesses, their customers and our new employees into the PPG family,” said Michael McGarry, PPG chairman and CEO.
“As we start 2020, we expect organic growth in our performance coatings segment to continue as we supply various consumer-facing and aftermarkets where demand remains solid, although segment sales will be impacted due to lower production rates by an aerospace customer. With respect to our industrial coatings segment, we anticipate a return to volume growth in the second half of 2020.”
Company info: PPG’s full fourth quarter earnings report can be viewed here.
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