CEO says sales could have been even bigger if not for raw material and supply chain setbacks.
Consumer demand was strong in the second quarter for the paint and coatings giant.
PPG reported record second quarter 2021 net sales of approximately $4.4 billion, nearly 45% higher than sales of $3 billion in the second quarter of 2020.
Selling prices increased by 3.5% while sales volumes were up 24% year over year, supported by strong demand across many end-use markets, PPG said. Acquisition-related sales added more than 11% year over year.
Architectural coatings sales jumped 33% to $2.75 billion for the quarter from sales of $2 billion for the same period a year ago.
The paint and coatings manufacturer posted a net income of $431 million for the period, soaring from a net income of $102 million in the second quarter last year.
During the quarter, PPG completed its acquisitions of Tikkurila, Wörwag, and Cetelon. The company has completed five acquisitions since December 2020 with total annualized revenue of about $1.7 billion.
The Bottom Line: PPG sales are up 45% to $4.4 billion as profits leap to $431 million compared to $102 million a year ago.
What the CEO said: “Our strong organic sales growth reflects a partial demand recovery from the pandemic, including above-market contributions across many of our businesses,” said Michael McGarry, PPG chairman and CEO. “However, our volume growth was significantly tempered due to various supply and component disruptions, including those that reduced the overall manufacturing capability of our customers.”
McGarry also noted that despite strong underlying end-use market demand, various coatings raw material shortages and logistics issues reduced PPG’s ability to fully supply its existing order book within the quarter.
Company info: The full second quarter 2021 financial report from PPG is available here.