PPG growth continues in 3Q
PPG reported record sales for the third quarter of $4.2 billion, surpassing the prior year’s third quarter results by 37%. Third quarter reported net income was $117 million.
Performance Coatings segment sales in the third quarter 2008 increased $266 million, or 28%, versus the prior year’s quarter. Sales grew as a result of acquisitions, most notably the SigmaKalon protective and marine coatings business, higher pricing in all businesses and currency gains. Volumes were flat, as declines in the U.S. architectural coatings business were offset by growth in all other business units. Segment earnings improved by $8 million, or six percent, mostly due to the positive performance of acquisitions.
Industrial Coatings segment sales for the quarter increased $121 million, or 13%, due primarily to the acquisition of SigmaKalon’s industrial coatings business, stronger foreign currencies and improved selling prices. Volumes were lower, particularly sales into the automotive OEM industry. Segment earnings decreased by $41 million, or 46%, due to the negative effects of lower volumes and inflation.
The Architectural Coatings EMEA (Europe, Middle East and Africa) segment represents the largest business from the SigmaKalon acquisition. Segment sales for the