PPG profits sag in Q4

PPG reported net sales increased more than 2% in the fourth quarter 2020 to $3.8 billion from sales of $3.7 billion in the fourth quarter 2019.

Sales for the full year fell 9% to $13.8 billion from 2019 sales of $15.1 billion.

The Pittsburgh-based paint and coatings manufacturer posted a fourth quarter net income of $272 million, falling nearly 7% from a net income of $292 million in the prior fourth quarter.

PPG’s net income for all of 2020 decreased nearly 15% to $1.059 billion compared to a net income of $1.243 billion in the prior year.

During the fourth quarter, PPG selling prices increased by about 1.5% while its sales volumes decreased by nearly 1.5% versus the prior year. The company attributed the volume decrease to the impacts of the COVID-19 pandemic.

Performance coatings segment fourth quarter net sales were about $2.2 billion, down approximately $15 million, or nearly 1%, versus the prior year. Organic sales within the architectural coatings for boththe  Americas and Asia Pacific businesses were up a mid-single-digit percentage year over year. Both the U.S. trade professional and DIY channels had positive organic sales growth, the company said.

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The Bottom Line: PPG fourth quarter sales rise slightly but profits sag nearly 7% to $272 million.

What the CEO said:  “Our strong earnings momentum continued in the fourth quarter as we delivered a second consecutive quarter of record operating margins,” said Michael McGarry, PPG chairman and CEO. 

Company info: The full fourth quarter 2020 report from PPG is available here.