PPG Industries Inc. (PPG, Financial) filed Quarterly Report for the period ended 2012-03-31.
Ppg Inds Inc has a market cap of $16.05 billion; its shares were traded at around $105.4 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Ppg Inds Inc stocks is 2.2%. Ppg Inds Inc had an annual average earning growth of 4.6% over the past 10 years. GuruFocus rated Ppg Inds Inc the business predictability rank of 4-star.
Performance Coatings sales increased 9 percent, or $98 million, to $1,150 million for the first quarter of 2012 compared to $1,052 million for the first quarter of 2011. The sales increase was comprised of 4 percent volume growth and 5 percent from higher pricing. Higher pricing was achieved by all the businesses in the segment. The volume improvement was led by the aerospace business and architectural coatings in the U.S. Sales volume in the aerospace business continued to benefit from excellent end-use market growth coupled with PPG share gain. U.S. architectural coatings was aided by very early signs of a construction market recovery, mild winter weather and some customer stocking. Volume growth in automotive refinish and protective and marine coatings was more modest, with variations by region. Segment volumes were varied by region with strong U.S. volume improvement, positive emerging region volumes, and lower European volumes. Segment income was $160 million for the first quarter of 2012 compared to $139 million for the first quarter of 2011, an increase of 15 percent. The increase in segment earnings was driven by the higher sales price and volume which more than offset the impact of continued cost inflation and higher overhead costs incurred to support the volume growth.
Industrial Coatings sales increased 5 percent, or $51 million, to $1,076 million for the first quarter of 2012 compared to $1,025 million for the first quarter of 2011. The sales increase was comprised of 2 percent volume growth as the businesses benefited from the strengthening of North American industrial end-use markets, 4 percent from higher pricing and 1 percent from acquisitions, partly offset by a 2 percent decline from unfavorable currency translation impacts. Improved selling prices by all businesses in the segment reflect continuing efforts to offset raw material inflation absorbed in 2011. Volumes grew in all businesses led by North American automotive OEM industry production increases coupled with PPG share gains. European volumes declined mid-single digit percents reflecting the regions lower overall industrial output. Emerging region growth continued but was not uniform within each region or business. The benefits from restocking stemming from fourth quarter 2011 customer inventory management were fairly minimal in this segment. Segment income was $150 million for the first quarter of 2012 compared to $116 million for the same quarter in 2011. This increase of $34 million resulted from volume gains and the effective management of overhead costs incurred to support that growth, coupled with the benefits from selling price increases, as pricing considerably lagged inflation in this segment during 2011.
Optical and Specialty Materials sales increased 8 percent, or $26 million, to $334 million for the first quarter of 2012 compared to $308 million for the first quarter of 2011. The sales increase was comprised of 9 percent volume growth, offset by a 1 percent decline from unfavorable currency translation impacts. The optical products business delivered solid sales volume growth due to higher Transitions® lens penetration and modest customer inventory restocking. The silica business sales volume was mixed by region with improved volumes in the U.S. and lower volumes in Europe. These results were in line with vehicle production activity in these regions during the quarter. Segment income was $109 million for the first quarter of 2012 compared to $90 million for the same quarter in 2011. The $19 million increase in segment income was primarily the result of the positive impact of higher volumes.
Glass sales decreased one percent, or $2 million, to $256 million for the first quarter of 2012 compared to $258 million for the first quarter of 2011. The sales decrease was comprised of 3 percent from lower pricing and 1 percent from the negative impact of currency translation offset by 3 percent volume growth. Key factors were lower year-over year fiber glass and flat glass pricing. Segment income was $8 million for the first quarter of 2012 compared to segment income of $26 million for the same quarter in 2011. The decrease in segment income included lower equity earnings related to the fiber glass Asian joint ventures, due to lower Asian electronics activity compared with robust 2011 activity levels. The factor causing the decrease in earnings is lower fiber glass pricing from weakened demand in Europe and Asia Pacific and inflation impacts, offset by improved fiber glass cost management and improved flat glass volumes.
Read the The complete Report
Ppg Inds Inc has a market cap of $16.05 billion; its shares were traded at around $105.4 with a P/E ratio of 14.6 and P/S ratio of 1.1. The dividend yield of Ppg Inds Inc stocks is 2.2%. Ppg Inds Inc had an annual average earning growth of 4.6% over the past 10 years. GuruFocus rated Ppg Inds Inc the business predictability rank of 4-star.
Highlight of Business Operations:
The effective tax rate on pretax earnings for the quarter ended March 31, 2012 was zero percent compared to approximately 26 percent in the first quarter of 2011. The first quarter 2012 effective tax rate includes tax benefits of $60 million or 37.7 percent on the $159 million charge for environmental remediation costs, $45 million or 21.4 percent on the $208 million business restructuring charge and $2 million or 28.6 percent on the acquisition-related expenses of $6 million. The effective tax rate on the remaining pre-tax earnings was 25 percent resulting in tax expense of $107 million.Performance Coatings sales increased 9 percent, or $98 million, to $1,150 million for the first quarter of 2012 compared to $1,052 million for the first quarter of 2011. The sales increase was comprised of 4 percent volume growth and 5 percent from higher pricing. Higher pricing was achieved by all the businesses in the segment. The volume improvement was led by the aerospace business and architectural coatings in the U.S. Sales volume in the aerospace business continued to benefit from excellent end-use market growth coupled with PPG share gain. U.S. architectural coatings was aided by very early signs of a construction market recovery, mild winter weather and some customer stocking. Volume growth in automotive refinish and protective and marine coatings was more modest, with variations by region. Segment volumes were varied by region with strong U.S. volume improvement, positive emerging region volumes, and lower European volumes. Segment income was $160 million for the first quarter of 2012 compared to $139 million for the first quarter of 2011, an increase of 15 percent. The increase in segment earnings was driven by the higher sales price and volume which more than offset the impact of continued cost inflation and higher overhead costs incurred to support the volume growth.
Industrial Coatings sales increased 5 percent, or $51 million, to $1,076 million for the first quarter of 2012 compared to $1,025 million for the first quarter of 2011. The sales increase was comprised of 2 percent volume growth as the businesses benefited from the strengthening of North American industrial end-use markets, 4 percent from higher pricing and 1 percent from acquisitions, partly offset by a 2 percent decline from unfavorable currency translation impacts. Improved selling prices by all businesses in the segment reflect continuing efforts to offset raw material inflation absorbed in 2011. Volumes grew in all businesses led by North American automotive OEM industry production increases coupled with PPG share gains. European volumes declined mid-single digit percents reflecting the regions lower overall industrial output. Emerging region growth continued but was not uniform within each region or business. The benefits from restocking stemming from fourth quarter 2011 customer inventory management were fairly minimal in this segment. Segment income was $150 million for the first quarter of 2012 compared to $116 million for the same quarter in 2011. This increase of $34 million resulted from volume gains and the effective management of overhead costs incurred to support that growth, coupled with the benefits from selling price increases, as pricing considerably lagged inflation in this segment during 2011.
Optical and Specialty Materials sales increased 8 percent, or $26 million, to $334 million for the first quarter of 2012 compared to $308 million for the first quarter of 2011. The sales increase was comprised of 9 percent volume growth, offset by a 1 percent decline from unfavorable currency translation impacts. The optical products business delivered solid sales volume growth due to higher Transitions® lens penetration and modest customer inventory restocking. The silica business sales volume was mixed by region with improved volumes in the U.S. and lower volumes in Europe. These results were in line with vehicle production activity in these regions during the quarter. Segment income was $109 million for the first quarter of 2012 compared to $90 million for the same quarter in 2011. The $19 million increase in segment income was primarily the result of the positive impact of higher volumes.
Glass sales decreased one percent, or $2 million, to $256 million for the first quarter of 2012 compared to $258 million for the first quarter of 2011. The sales decrease was comprised of 3 percent from lower pricing and 1 percent from the negative impact of currency translation offset by 3 percent volume growth. Key factors were lower year-over year fiber glass and flat glass pricing. Segment income was $8 million for the first quarter of 2012 compared to segment income of $26 million for the same quarter in 2011. The decrease in segment income included lower equity earnings related to the fiber glass Asian joint ventures, due to lower Asian electronics activity compared with robust 2011 activity levels. The factor causing the decrease in earnings is lower fiber glass pricing from weakened demand in Europe and Asia Pacific and inflation impacts, offset by improved fiber glass cost management and improved flat glass volumes.
Read the The complete Report
