PPG Q2 profits plummet
Paint maker sees sales and sales volume slide in second quarter.
Paint and coatings manufacturer PPG reported second quarter 2019 net sales slumped 4% to $4.02 billion compared to net sales of $4.13 billion for the second quarter 2018.
Sales for the first six months of 2019 fell a little more than 3% to $7.64 billion in comparison to sales of $7.91 billion for the first half of 2018.
The Pittsburgh, Pa.-based manufacturer also reported a net income from continuing operations of $270 million for the quarter, a 27% slide from a net income from continuing operations of $371 during the same period last year.
For the first half of 2019, PPG posted a net income from continuing operations of $582 million, down nearly 17% from an income of $699 million for the corresponding period a year ago.
Sales volumes were down about 4% versus the prior year in aggregate, including about 1.5% stemming from the previously announced U.S. architectural coatings customer-assortment changes, PPG said. Last year Lowe’s announced it was discontinuing sales of PPG Olympic brand paint and stains.
The bottom line: Second quarter sales fall 4% to $4 billion for the paint giant, while earnings slide 27% for the period.
What the CEO said: “We were able to manage through the more challenging business environment with improved selling prices and continued, strong cost management,” said Michael McGarry, PPG chairman and CEO. “In reflection of the economic backdrop and to further strengthen our cost position, we announced and began to implement a new cost management program in the second quarter, and we expect the program to deliver $125 million of savings upon completion. Also, we are quickly integrating our recent acquisitions of SEM, Whitford and Hemmelrath, with each exceeding early expectations.
Company info: The full second quarter report from PPG can be read here.
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