·         Second quarter net sales of $4.1 billion, up 5 percent versus prior year
·         All-time quarterly record adjusted earnings per diluted share from continuing operations of $2.83, up 24 percent year-over-year
·         Record earnings in each major region, including 28 percent growth in Europe
·         Reached agreement to acquire Consorcio Comex (Latin America) during quarter
·         Cash and short-term investments totaling $2.9 billion at quarter-end

 PPG Industries  today reported record second quarter 2014 net sales from continuing operations of $4.1 billion, up $199 million, or 5 percent, versus the prior year. Second quarter 2014 reported net income from continuing operations was $393 million, or $2.80 per diluted share. Second quarter 2014 adjusted net income from continuing operations was $398 million, or $2.83 per diluted share, which excludes $3 million after-tax, or 2 cents per diluted share, for pension settlement costs and $2 million after-tax, or 1 cent per diluted share, for acquisition-related costs.

Second quarter 2013 reported net income and earnings per diluted share from continuing operations were $318 million and $2.19, respectively. Adjusted net income from continuing operations was $331 million, or $2.28 per diluted share, and excluded acquisition-related costs of $13 million, or 9 cents per diluted share.

“The benefits of our new business portfolio are measurable, as our adjusted earnings per share from continuing operations increased 24 percent this quarter, with an average quarterly increase the past six quarters of more than 30 percent,” said Charles E. Bunch, PPG chairman and chief executive officer. “In the quarter, we continued to deliver growth across most of our businesses in comparison with strengthening prior-year results. We realized the highest growth in automotive OEM and various general industrial and specialty coatings end-use markets, as we continue to benefit from solid end-use market demand supplemented by customer adoption of new PPG technologies.

“We achieved consistent volume growth and improved year-over-year earnings in each major region,” Bunch added. “Europe led our performance improvement, growing earnings 28 percent, as PPG continues to realize excellent earnings contributions from the gradual economic improvement in that region, illustrating our earnings leverage driven by our previous structural cost-reduction actions. In the U.S. and Canada, the pace of growth was modest early in the quarter but accelerated in June. Our earnings in this region grew 12 percent, supported by continuing improvement across most end-use markets. Emerging-regions earnings advanced 14 percent, as PPG benefited from accelerating growth rates for automotive OEM and other industrial-related products in both China and India.

“Strategically, we continue to complete significant actions focused on expanding our global coatings presence,” Bunch said. “We closed several small acquisitions this year, and most noteworthy, we reached agreement to acquire Comex – one of the highest-quality coatings businesses in the world. We are excited about the value this transaction brings to PPG.

“Looking forward, we remain highly focused on deploying our strong cash position and balance sheet for additional earnings-accretive opportunities. We anticipate moderate global expansion and believe that our geographic diversity, coupled with our previous structural cost reductions, will allow us to continue to deliver excellent earnings performance from increased global demand,” Bunch concluded.

PPG announced June 30 it had reached an agreement to acquire Consorcio Comex, a leading Latin American architectural and industrial coatings company, in a transaction valued at $2.3 billion.

Today PPG reported cash and short-term investments totaling $2.9 billion at quarter-end and noted that it repurchased $100 million, or about 500,000 shares, of PPG stock during the quarter. The company also reaffirmed its intention to spend a total of $3 billion to $4 billion in 2014 and 2015, combined, on acquisitions and share repurchases.

Second Quarter 2014 Reportable Segments Financial Results

·Performance Coatings segment net sales for the quarter were $2.3 billion, up $84 million, or 4 percent, year-over-year. Sales benefited evenly from volume, price, currency translation and acquisition-related gains. The segment achieved sales growth in all major regions except Latin America, primarily Brazil. Automotive refinish and aerospace continued to deliver higher sales, reflecting strong end-use market conditions. North American architectural coatings sales grew modestly, with results differing by distribution channel. Architectural coatings – EMEA (Europe, Middle East and Africa) sales volumes were up low-single-digit percentages versus an improving trend in the prior-year period, as demand recovery broadened in the region but remained uneven. Aggregate protective and marine coatings sales were down slightly as protective coatings volume growth was offset by weaker sales in the marine new-builds market. The marine decline was slight in comparison with recent periods. Businesses with a seasonal sales pattern generally experienced normal sequential improvement trends versus the first quarter. Segment earnings of $373 million were up $49 million, or 15 percent, as a result of the increase in net sales and additional realization of acquisition-related cost synergies.

· Industrial Coatings segment net sales for the quarter were $1.5 billion, increasing $95 million, or 7 percent, over the prior-year period. Volume growth of 7 percent accounted for the net sales change, with volume improvement realized in all regions. Automotive original equipment manufacturer (OEM) coatings delivered higher volumes in all regions, growing in aggregate by high-single-digit percentages that surpassed a global industry demand growth rate of about 2 percent. The industrial coatings and specialty coatings and materials businesses also delivered solid volume growth, reflecting increased strength in certain end-use markets and emerging countries such as China and India. Packaging coatings sales were weaker due to lower European volume. Total segment earnings for the quarter were $257 million, up $39 million, or 18 percent, year-over-year as a result of the higher volumes supplemented by manufacturing cost improvements.

· Glass segment net sales were $289 million for the quarter, up $20 million, or 7 percent, year-over-year. Segment sales volume grew 5 percent, with comparable rates in both businesses, and segment pricing improved more than 1 percent. Global fiber glass demand continued to expand, led by automotive and energy-related applications. Flat glass volumes improved on higher North American residential activity. Segment earnings were $11 million, up $3 million versus the prior year. Earnings benefited from the improved sales and manufacturing costs, which were partly offset by $5 million of scheduled maintenance and repair costs that will not recur in the third quarter as well as year-over-year natural gas cost inflation.