• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Pigments Market

    The Architectural Paint Market Enjoys a Strong 2022

    The Buyers’ Guide

    Auto Refinish Market

    The 2022 Protective Additives Directory
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Coatings World's Top Ten Most Popular Articles for January 2023

    Caren Hoffmann Appointed Vice President for BASF Mining Solutions

    Microban International Announces Four Senior Hires

    PPG Completes COLORFUL COMMUNITIES Project in Denmark

    10 Partners of the Automotive Industry Form JV, Cofinity-X
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Completes COLORFUL COMMUNITIES Project in Denmark

    PPG’s SEM Products Business Launches VCS Hybrid Cup System for the Refinish Market

    Mankiewicz Selects ‘Feel Good’ Hues for 2023 Colors of the Year

    ROSS Offers Heavy-Duty Three Roll Mills for High Viscosity Dispersions

    PPG Achieves ISO 14001 Certification of Environmental Management System
    Additives
    Binders
    Pigments
    Solvents

    SAFIC-ALCAN to Distribute Scott Bader Acrylics & Rheology Modifiers in France

    EPS Launches New Acrylic DIrect-to-Metal Polymer

    Evonik, Partners Launch PlasCO₂ Project for C4 Chemicals Production

    Dr. Ranjini Murthy to Join Azelis Americas as SVP of Commercial and Digital Excellence

    Univar Solutions Announces New Distribution Relationship
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Pilot Chemical Company

    Shepherd Color Company, The

    Clariant Additives

    Active Minerals

    W. R. Grace & Co.
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Saudi Arabia Coatings Show

    Southern Society for Coatings Technology Annual Meeting and Technology Conference

    Eastern Coatings Show

    CPCA Annual Conference

    66th Annual Sink or Swim
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Pilot Chemical Company

    Shepherd Color Company, The

    Clariant Additives

    Active Minerals

    W. R. Grace & Co.
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    PPG Reports Third Quarter 2017 Financial Results

    ...

    PPG Reports Third Quarter 2017 Financial Results
    Related Content
    • Axalta Updates Financial Guidance
    • PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages
    • BASF Reports Strong Second Quarter
    • PPG Reports Second Quarter 2021 Financial Results
    • Varying Growth Patterns for the Top 11 Paints and Coatings Manufacturers in Q1 2021
    10.19.17
    PPG reported third quarter 2017 net sales of approximately $3.8billion, up more than 3 percent versus the prior year. Sales volumes, including the unfavorable impact of several natural disasters, grew by nearly 1 percent. Prior to the natural disasters, PPG’s quarterly volume growth was tracking ahead of the growth rate for the first six months of the year. Selling prices improved modestly year-over-year for the second consecutive quarter. Favorable foreign currency translation improved net sales by nearly 2 percent, or about $65 million.

    Third quarter 2017 net income from continuing operations was $392 million, or $1.52 per diluted share, which includes an unfavorable natural disaster-related impact of approximately 5 cents.  The company’s reported profit contribution margin as a percentage of sales declined 160 basis points year-over-year, and approximately 130 basis points excluding the impact of natural disasters. This compression is an improvement from the second quarter 2017 when the company’s profit contribution margin contracted by 210 basis points versus the prior year.

    Third quarter 2016 reported net loss from continuing operations was $211 million, or $0.79 per share. Third quarter 2016 adjusted net income from continuing operations was $405 million, or $1.52 per share, excluding net after-tax charges totaling $616 million, or $2.31 per share, for pension settlement charges.

    “While the third quarter was challenging emotionally and operationally due to the natural disasters, we achieved solid overall financial results and, more importantly, made someprogress in our initial operating margin recovery efforts,” said Michael McGarry, PPG chairman and chief executive officer.“Additionally, we were tracking toward volume growth of about 1.5 percent prior to the disasters, which was an improvement versus our sales volume growth for the first half of the year. 

    “We have achieved some operating margin recovery, despite continuing raw material cost inflation driven by a variety of supply-related factors, some of which are transitory,” McGarrysaid. “We have continued to aggressively manage our costs, and have secured initial selling price increases with only a portion of these increases realized during the quarter. Also, while we still have more work to do to improve our overall organic growth rate, we are continuing to make measurable headway in several areas, including our Industrial Coatings segment which grew sales volumes by more than 3 percent year-over-year and in our U.S. architectural coatings company-owned stores where same store sales growth was trending above 6 percent prior to the hurricanes. 

    “During the quarter, we made progress on our strategicinitiatives including the sale of our remaining Glass business,marking a transformational milestone for the company. Also, we remain committed to earnings-accretive cash deployment and have spent more than $700 million to date toward our $3.5 billion target, with the remaining $2.8 billion to be deployed by the end of 2018,” McGarry continued.

    “Looking ahead to the fourth quarter, we expect moderate global economic growth to continue. Given the after-effects from the natural disasters, we no longer expect any notabledecline in the level of raw material cost inflation for the remainder of this year. We are continuing to work with our customers to address the inflationary environment and expect to realize additional selling price increases. Lastly, we continue to execute on our restructuring program and remain on track to deliver full-year savings of more than $45 millionas we continue to manage all aspects toward margin recovery,” McGarry commented.

    The company announced today that it expects the recent natural disasters will unfavorably affect fourth quarter diluted earnings-per-share by up to $0.05.

    As of Sept. 30, 2017, cash and short-term investments totaled $2.3 billion. Year-to-date, PPG has completed business acquisitions totaling more than $300 million, including The Crown Group which was finalized on Oct. 2, and more than $400 million of share repurchases.

    Third Quarter 2017 Reportable Segment Financial Results

    • Performance Coatings segment third quarter net sales were approximately $2.3 billion, up $67 million, or 3percent, versus the prior year. Net sales benefited fromhigher selling prices across all businesses and regions, and acquisition-related sales of approximately $25million. Sales volumes declined by about 1 percent year-over-year, primarily due to the natural disasters unfavorably impacting the architectural and protective coatings businesses in the U.S. and Mexico by approximately $25 million. Favorable foreign currency translation increased net sales by more than $45 million, or 2 percent.

    Organic sales improved modestly year-over-year in automotive refinish coatings driven by growth in developed regions. Aerospace coatings sales volumes grew slightly over the prior year period aided by higher European demand. Protective and marine coatings sales volumes were flat year-over-year, and improvedsequentially versus prior quarters, despite lower U.S. protective coatings sales volumes stemming from the hurricanes. Architectural coatings – EMEA sales volumes declined by a mid-single-digit percentage as business was turned away due to either low profitability or lack of customer acceptance of selling price increases, and demand in certain countries remains sluggish. Architectural coatings – Americas and Asia Pacific sales volumes were flat year-over-year with differences by channel and region. U.S. and Canada company-owned architectural stores grew sales volumes by a mid-single-digit percentage year-over year including the unfavorable impact from the hurricanes. This increase in sales was more than offset by lower sales volumes in national retail (DIY) accounts and independent dealer networks as both of these distribution channels continue to experience soft demand. Latin American architectural coatings sales volume growth was slightly up year-over-year despite the impacts from the natural disasters, while modest organic architectural coatings sales growth continued in Asia-Pacific.

    Segment income for the third quarter was $365 million, down $3 million, or about 1 percent, year-over-year, including favorable foreign currency translation of $7million primarily due to the euro and Mexican peso.Segment income was negatively impacted by continuing,significant raw material cost inflation and lower sales volumes related to the natural disasters partly offset by selling price increases and aggressive overhead and manufacturing cost reduction efforts, including benefits from business restructuring actions.

    • Industrial Coatings segment third quarter net sales were about $1.5 billion, up $49 million, or more than 3 percent, versus the prior-year period. Sales volumes increased bymore than 3 percent and favorable foreign currency translation added $20 million, or about 1 percent, versus the prior year. Selling prices were modestly lower year-over-year, but improved sequentially versus the second quarter. The natural disasters had minimal impact on segment sales, but did result in higher raw material and transitory logistics costs.

    Automotive original equipment manufacturer (OEM)coatings sales volumes increased by a low-single-digit percentage year-over-year, matching global auto industryproduction rates. Aggregate industrial coatings and specialty coatings and materials sales volumes increased by a mid-single-digit percentage versus the prior yearand outpaced regional industrial production growth rates for the seventh consecutive quarter, as higher volumeswere achieved in each major region and in many end-use markets. Packaging coatings sales volumes increased a mid-single-digit percentage year-over-year and were above industry growth rates in most regions, led by customer adoption of new PPG technologies.

    Segment income for the third quarter was $223 million, down $26 million, or 10 percent, year-over-year.Segment income benefited from the impact of higher sales volumes and strong cost management, including the benefits from business restructuring actions. These improvements were more than offset by increases in raw material costs, higher logistics costs and lower selling prices. Favorable foreign currency translation increased segment income by $3 million.

    Figures for all periods present PPG’s former Glass segment as discontinued operations. 
    Related Searches
    • coatings
    • architectural coatings
    • environment
    • industrial
    Suggested For You
    Axalta Updates Financial Guidance Axalta Updates Financial Guidance
    PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages
    BASF Reports Strong Second Quarter BASF Reports Strong Second Quarter
    PPG Reports Second Quarter 2021 Financial Results PPG Reports Second Quarter 2021 Financial Results
    Varying Growth Patterns for the Top 11 Paints and Coatings Manufacturers in Q1 2021 Varying Growth Patterns for the Top 11 Paints and Coatings Manufacturers in Q1 2021
    Disruption of Africa Aviation Sector Could  Impact Aerospace Coatings Uptake Disruption of Africa Aviation Sector Could Impact Aerospace Coatings Uptake
    RPM Reports Fiscal 2021 3Q Results RPM Reports Fiscal 2021 3Q Results
    PPG Reports Q4, Full-year 2020 Financial Results PPG Reports Q4, Full-year 2020 Financial Results
    RPM Reports Fiscal 2021 2Q Results RPM Reports Fiscal 2021 2Q Results
    PPG Reports Record 3Q 2020 Financial Results PPG Reports Record 3Q 2020 Financial Results
    PPG Projects Strong 3Q Financial Results PPG Projects Strong 3Q Financial Results
    PPG Completes COLORFUL COMMUNITIES Project at St. Gregory’s Catholic Primary School in Birmingham, UK PPG Completes COLORFUL COMMUNITIES Project at St. Gregory’s Catholic Primary School in Birmingham, UK
    PPG Gives Updates on Natural Disaster Impact, Third Quarter Financial Guidance PPG Gives Updates on Natural Disaster Impact, Third Quarter Financial Guidance
    PPG Executive Vice President Viktor Sekmakas Retires PPG Executive Vice President Viktor Sekmakas Retires
    Analyst Finds Silver Lining After PPG Industries (PPG) 2Q17 Results Analyst Finds Silver Lining After PPG Industries (PPG) 2Q17 Results

    Related Breaking News

    • Breaking News | Financial News | Market Trends & Forecast
      Axalta Updates Financial Guidance

      Axalta Updates Financial Guidance

      Axalta updates financial guidance to reflect ongoing impacts of customer supply chain shortages and raw material and logistics constraints.
      09.22.21

    • Breaking News | Financial News
      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies.
      09.07.21

    • Breaking News | Financial News
      BASF Reports Strong Second Quarter

      BASF Reports Strong Second Quarter

      Sales growth of 56 percent to €19.8 billion.
      07.28.21


    • Breaking News | Financial News
      PPG Reports Second Quarter 2021 Financial Results

      PPG Reports Second Quarter 2021 Financial Results

      PPG recorded second quarter net sales of nearly $4.4 billion.
      07.20.21

    • Breaking News | Market Reports
      Varying Growth Patterns for the Top 11 Paints and Coatings Manufacturers in Q1 2021

      Varying Growth Patterns for the Top 11 Paints and Coatings Manufacturers in Q1 2021

      Asian Paints and Nippon Paint recorded the highest volume-related growth in the first quarter of 2021.
      06.24.21

    Loading, Please Wait..
    Trending
    • Minwax Brand Announces Gentle Olive As Its 2022 Color Of The Year
    • PPG Reports Fourth Quarter, Full-Year 2022 Financial Results
    • 10 Partners Of The Automotive Industry Form JV, Cofinity-X
    • BASF Recognized As Top Company For Supplier Diversity
    • Eastman Acquires Dalian Ai-Red Technology
    Breaking News
    • Coatings World's Top Ten Most Popular Articles for January 2023
    • Caren Hoffmann Appointed Vice President for BASF Mining Solutions
    • Microban International Announces Four Senior Hires
    • PPG Completes COLORFUL COMMUNITIES Project in Denmark
    • 10 Partners of the Automotive Industry Form JV, Cofinity-X
    View Breaking News >
    CURRENT ISSUE

    January 2023

    • Pigments Market
    • The Architectural Paint Market Enjoys a Strong 2022
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    NPA Announces Annual Capitol Hill Advocacy ‘Fly-In’ Day
    GOED Elects New Board Officers for 2023
    Aspire Hires Darrec Jones as VP of Business Development
    Coatings World

    Latest Breaking News From Coatings World

    Caren Hoffmann Appointed Vice President for BASF Mining Solutions
    Microban International Announces Four Senior Hires
    PPG Completes COLORFUL COMMUNITIES Project in Denmark
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Freudenberg Medical Adds Silicone Extrusion Capabilities in Massachusetts
    Positive Long-Term Prospects for Japanese Diabetes Care Market
    Digital X-Ray is as Effective as Lung Ventilation Perfusion in Detecting CTEPH
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Bristol Myers Squibb 4Q Results
    Actinium, NCI Partner to Develop Actimab-A in AML
    Astellas Announces New President and CEO and Management Structure
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Old Spice Introduces New Mascot and Launches ‘Smelf-Confidence’ Campaign
    KVD Beauty Launches Good Apple Serum Foundation
    Interpack 2023 to Focus on Sustainability
    Happi

    Latest Breaking News From Happi

    EvaClean Promotes Nicole Slacik to Executive Vice President, Healthcare
    Personal Care Brand Odele Expands into Ulta Beauty
    Clorox’s Eric Reynolds Elected Chair of American Cleaning Institute’s Board of Directors
    Ink World

    Latest Breaking News From Ink World

    Flexible Packaging Market to Reach $315.5B by 2027 Globally: MarketsandMarkets
    Mexar Limited Awarded OEKO-TEX ECO PASSPORT Certification
    Graphic Packaging Named to Fortune's List of World's Most Admired Companies
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Fujifilm expands RxD inkjet pigment dispersions color range
    Anderson & Vreeland acquires flexo consumable assets from Grimco
    Hamillroad Software's Bellissima DMS honored in Brazil
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Avgol to Showcase Algaeing Colorants and Fibers at Filtech
    Uster to Host Webinar on Zero-Level Contamination Control
    Typar Expands Drainable Wrap Line
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Steady Growth Forecast for Global Orthobiologics Market
    ODT's Most-Read Stories This Week—Feb. 4
    Toetal Solutions Secures $1.8 Million in New Financing
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    onsemi Exceeds 4Q 2022 Expectations
    Emerson Launches Ovation Green Software Portfolio
    Graphene Flagship Researchers Examine Applications for Space

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login