Flat Q3 for PPG
Paint and coatings manufacturer PPG reported third quarter 2019 sales of $3.83 billion, nearly even with third quarter 2018 net sales of $3.82 billion.
The Pittsburgh, Pa.-based company also reported a third quarter net income from continuing operations of $366 million, down just 0.54% from earnings of $368 million for the same period last year.
PPG said net sales were driven by higher selling prices – up 2.6% – along with acquisition related sales.
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The bottom line: Sales and earnings are flat for the Pittsburgh paint giant.
What the CEO said: “Strong execution against our cost-savings initiatives and our sixth consecutive quarter with selling price increases of at least 2% aided in our gross profit improvement, as we continue our efforts to offset the significant raw material cost inflation absorbed in the past few years,” said Michael McGarry, PPG chairman and CEO.
“We made excellent progress executing on our key initiatives, including $20 million of cost savings in the third quarter related to previously announced cost savings programs,” said McGarry. “In addition, we completed the acquisition of Dexmet, a manufacturer of specialty materials for aerospace, automotive and industrial applications. We have completed four acquisitions with combined annual revenues of about $400 million that are benefiting our results this year. We continue to generate strong operating cash flow, with year-to-date cash generation improving by about $600 million in comparison to last year,” McGarry added.
Looking ahead to the fourth quarter, McGarry noted that PPG anticipates global economic growth will remain soft impacting several end-use markets. “Many of our customers remain cautious about their ordering patterns and inventory levels.”
Company info: PPG’s full third quarter 2019 report can be read here.
The Pittsburgh, Pa.-based company also reported a third quarter net income from continuing operations of $366 million, down just 0.54% from earnings of $368 million for the same period last year.
PPG said net sales were driven by higher selling prices – up 2.6% – along with acquisition related sales.
###
The bottom line: Sales and earnings are flat for the Pittsburgh paint giant.
What the CEO said: “Strong execution against our cost-savings initiatives and our sixth consecutive quarter with selling price increases of at least 2% aided in our gross profit improvement, as we continue our efforts to offset the significant raw material cost inflation absorbed in the past few years,” said Michael McGarry, PPG chairman and CEO.
“We made excellent progress executing on our key initiatives, including $20 million of cost savings in the third quarter related to previously announced cost savings programs,” said McGarry. “In addition, we completed the acquisition of Dexmet, a manufacturer of specialty materials for aerospace, automotive and industrial applications. We have completed four acquisitions with combined annual revenues of about $400 million that are benefiting our results this year. We continue to generate strong operating cash flow, with year-to-date cash generation improving by about $600 million in comparison to last year,” McGarry added.
Looking ahead to the fourth quarter, McGarry noted that PPG anticipates global economic growth will remain soft impacting several end-use markets. “Many of our customers remain cautious about their ordering patterns and inventory levels.”
Company info: PPG’s full third quarter 2019 report can be read here.