PPG Industries reported net sales for the fourth quarter 2011 of $3.5 billion, an increase of four percent versus the prior year’s fourth quarter. Net income for the quarter increased to $216 million, or $1.39 per diluted share. Fourth quarter 2010 net sales were $3.4 billion, and net income was $205 million, or $1.24 per diluted share.
Performance Coatings segment sales for the quarter were $1.1 billion, up $34 million versus the prior year. Higher selling prices were realized in each business, while segment volumes declined two percent versus last year. The aerospace business continued to deliver excellent growth. Automotive refinish volumes fell modestly due to customer inventory management and softer European economic conditions. U.S. architectural coatings sales improved, including company-owned same-store sales gains of high-single-digit percentages, due to higher pricing, while volumes remained flat. Architectural coatings volumes in emerging regions declined by mid- to high-single-digit percentages, including lower demand in China, and marine volumes declined by mid-single-digit percentages due to reduced shipbuilding activity. Segment earnings were down $30 million from the prior year due primarily to the lower marine and architectural coatings results, including the lower activity levels, higher inflation levels versus pricing and higher costs. The cost increase included higher year-over-year marine customer claims expense and additional selling and marketing costs in architectural coatings.
Industrial Coatings segment sales rose $70 million over last year’s fourth quarter to $1 billion, a seven percent increase. Volume grew four percent based on increased global automotive production and growth in several general industrial end-use markets coupled with PPG market share gains. Segment earnings for the quarter were $106 million, an increase of $27 million over the prior year’s fourth quarter, as volume and price gains combined with continued, strict cost management to offset persistent raw-material cost inflation.
Sales for the Architectural Coatings-EMEA (Europe, Middle East and Africa) segment for the quarter increased $23 million, or five percent, versus the prior year’s period to $449 million, including the negative effects of currency translation. Volumes were up by low-single-digit percentages on share gains despite lower retail and “do-it-yourself” (DIY) store sales. Fourth quarter segment earnings grew $6 million year-over-year to $8 million as a result of the improved volumes in what is seasonally a slow quarter for the business.