PPG Q2 sales rise 9%
Paint giant PPG reported second quarter 2018 net sales of about $4.1 billion, up nearly 9% from net sales of $3.8 billion for the same period last year.
The Pittsburgh, Pa.-based manufacturer also reported a second quarter net income from continuing operations of $371 million, a 25% drop from a net income from continuing operations of $496 million for the second quarter 2017.
According to Michael McGarry, PPG chairman and CEO, the company’s sales volume grew more than 3% during the quarter with performance coatings sales volumes rising 4% year-over-year.
But raw material and logistics costs continued to increase during the period, including the impacts of higher oil prices and the availability of transportation. PPG said it is working offset inflation through a restructuring program that is expected to deliver $85 million in annual savings.
The restructuring plan is also in response to Lowe’s decision to expand its relationship with Sherwin-Williams while moving away from PPG. Lowe’s paint plan is expected to take full effect in the third quarter while impacting PPG sales.
“As we look ahead, we currently do not anticipate any relief from inflationary cost pressures in the third quarter. We expect aggregate global economic growth to remain positive with end-use market activity comparable to the second quarter, adjusted for traditionally lower seasonal demand,” McGarry said.
PPG’s performance coatings segment second quarter net sales were approximately $2.5 billion, up $199 million, or 9 percent, versus the prior year. Industrial coatings segment second quarter net sales were about $1.6 billion, up $128 million, or nearly 9% versus the prior year.
The Pittsburgh, Pa.-based manufacturer also reported a second quarter net income from continuing operations of $371 million, a 25% drop from a net income from continuing operations of $496 million for the second quarter 2017.
According to Michael McGarry, PPG chairman and CEO, the company’s sales volume grew more than 3% during the quarter with performance coatings sales volumes rising 4% year-over-year.
But raw material and logistics costs continued to increase during the period, including the impacts of higher oil prices and the availability of transportation. PPG said it is working offset inflation through a restructuring program that is expected to deliver $85 million in annual savings.
The restructuring plan is also in response to Lowe’s decision to expand its relationship with Sherwin-Williams while moving away from PPG. Lowe’s paint plan is expected to take full effect in the third quarter while impacting PPG sales.
“As we look ahead, we currently do not anticipate any relief from inflationary cost pressures in the third quarter. We expect aggregate global economic growth to remain positive with end-use market activity comparable to the second quarter, adjusted for traditionally lower seasonal demand,” McGarry said.
PPG’s performance coatings segment second quarter net sales were approximately $2.5 billion, up $199 million, or 9 percent, versus the prior year. Industrial coatings segment second quarter net sales were about $1.6 billion, up $128 million, or nearly 9% versus the prior year.