PITTSBURGH – PPG Industries has reported sales for the second quarter 2011 of $4 billion, an increase of 15 percent versus the prior year’s second quarter. Each major region and reporting segment achieved volume and price gains, the company noted.
Net income for the quarter increased to $340 million, or $2.12 per diluted share. Second quarter 2010 sales were $3.5 billion, and net income was $272 million, or $1.63 per diluted share.
“Our strong execution during the quarter enabled us to deliver excellent financial performance, including record earnings for any quarter,” said Charles Bunch, PPG chairman and CEO. “We implemented further pricing initiatives and managed our businesses aggressively to overcome continued input cost inflation, a global economy that has only partially recovered and several transitory impacts to some businesses’ volumes early in the quarter. Our strong performance underscores the benefits of our broad end-use market reach and the global business portfolio we have built.”
PPG also reported that it ended the quarter with approximately $1.25 billion in cash and short-term investments. During the quarter, the company finalized the acquisitions of Equa-Chlor and Ducol Coatings and announced its agreement to acquire Dyrup A/S.
Included in the company’s second quarter Architectural Coatings – EMEA (Europe, Middle East and Africa) segment results is a charge of approximately $9 million related to the second quarter bankruptcy filing of a U.K.-based “do-it-yourself” (DIY) home center customer. This charge was offset by a $9 million net benefit stemming primarily from a bargain purchase gain reflecting the excess of the fair value of the net assets acquired from Equa-Chlor during the quarter over the price paid. This benefit was itemized separately in the company’s segment reporting and is not included in the company’s Commodity Chemicals segment results.
In other news, PPG Industries today announced four executive appointments. All changes are effective Sept. 1.
J. Rich Alexander, PPG executive vice president, has been appointed to lead all of PPG’s architectural coatings businesses. In this role, Alexander will direct the integration of PPG’s current architectural coatings – EMEA (Europe, Middle East and Africa) and architectural coatings – Americas and Asia/Pacific businesses to fully leverage strategic and operational synergies for these businesses. In addition, Alexander will assume executive leadership responsibility for the Asia/Pacific region and will retain responsibility for PPG’s fiber glass and flat glass businesses, as well as the purchasing and distribution, and corporate marketing functions. Alexander, based in Pittsburgh, will continue to be a member of PPG’s executive and operating committees.
Pierre-Marie De Leener, PPG executive vice president, has been appointed to lead PPG’s global automotive refinish, protective and marine coatings, and aerospace businesses. De Leener also will assume executive leadership responsibility for the Latin America region. He will retain responsibility for PPG’s global information technology function. De Leener will relocate to Pittsburgh from PPG’s EMEA headquarters in Rolle, Switzerland. De Leener will continue to be a member of PPG’s executive and operating committees.
Viktoras Sekmakas, PPG senior vice president, industrial coatings and president, PPG Asia/Pacific, will be named senior vice president, industrial coatings, and president, PPG Europe. Sekmakas will assume leadership responsibility for the EMEA region in addition to leading the global industrial coatings and packaging coatings businesses. Sekmakas will relocate from PPG’s Asia/Pacific headquarters in Hong Kong to Rolle, Switzerland. Sekmakas will continue to be a member of PPG’s operating committee.
Michael Horton, vice president, Asia/Pacific coatings, and general manager, automotive refinish and architectural coatings, Asia/Pacific, will be named president, PPG Asia/Pacific, and vice president, automotive refinish and architectural coatings, Asia/Pacific. Horton will remain based in Shanghai.
Alexander, De Leener and Sekmakas will report to Bunch; Horton will report to Alexander for his Asia/Pacific regional and architectural coatings responsibilities.
