The hottest PPG industry announced its first quart

2022-08-15
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PPG industry announced its first quarter results

PPG industry announced its first quarter results

April 28, 2013

[China paint information]

* in the first quarter of 2013, its continuing operations achieved sales of $3.3 billion

* adjusted diluted earnings per share of $1.58 in the first quarter

* diluted earnings per share announced in this quarter was $16.31, Including a large amount of non recurring income from the divestiture transaction of bulk chemicals business

* the profit of the overall coating business increased by 13% year-on-year, and all regions achieved growth

* the restructuring project saved the company about $30million in the first quarter

* the cash used for stock repurchase in this quarter was $140million

* after completing the acquisition transaction of AkzoNobel's North American architectural coating business, The company raised the synergy target of the integration project

on April 27, 2013, Pittsburgh, the United States - PPG industries (NYSE: PPG) recently announced that its continuing operations in the first quarter of 2013 achieved net sales of $3.3 billion, unchanged from the same period last year. Several non recurring items were included in the net profit and diluted earnings per share announced by the company this year and 2012, which will be detailed in the "financial data adjustment" below. Excluding non recurring expenses, the adjusted net profit of continuing operations in the first quarter of 2013 was $235 million, equivalent to diluted earnings per share of $1.58. As a reference, the adjusted net profit from continuing operations in the first quarter of 2012 was $216 million, equivalent to diluted earnings per share of $1.41

"in the first quarter of 2013, the sales performance of our coating business was strong, and the overall profit of our business further increased by 13% compared with the highest point in history last year." Charles E. bunch, chairman and CEO of PPG, said, "there are still great differences in market demand in major regions. The sales performance in North America is relatively strong, but there is still a big gap between domestic diaphragm enterprises and foreign leading enterprises. The Asian market as a whole has maintained growth, while the European region is still not out of weakness."

"although the market performance is uneven, our coating business has achieved profitable growth in all major regions, mainly thanks to the company's active cost control measures, and the robust demand in some end markets such as automotive OEM, aviation and American construction."

bunch pointed out that the sales and profits of optical products and special materials business both fell, mainly due to the weakening of consumer demand in the United States, but a new product launched in Europe in February was very popular, which partially offset its adverse effects. The profit of the glass business fell year-on-year due to the weak sales of glass fiber

"at the strategic level, we successfully completed the acquisition of AkzoNobel's North American architectural coatings business on April 1. The sales of this acquired business in 2012 reached $1.5 billion, more than twice the size of our existing North American construction and construction maintenance market." Bunch added: "Since we announced the transaction in December 2012, the whole team has been fully engaged in the operation of the project to ensure the seamless integration of business for customers and create additional value for shareholders. In addition, we have also found a way to improve cost-effectiveness by raising the synergy target of the integration project by 25%. At present, we expect to realize the synergy benefit 2 per year in the first three years after the completion of the purchase of creep resistance and chemical corrosion resistance $billion, of which $60million is expected to be saved annually. "

"Looking forward to the second quarter, we expect that the U.S. and Asian markets will continue to maintain a good growth momentum, while the outlook for the European market is still not optimistic, and the possibility of recent improvement is limited. Considering the diversity of our business in the regional and terminal markets, plus the cost-effectiveness brought by the restructuring project, as well as the positive business management model PPG has always adhered to, it is expected that the overall profit of the company will continue to maintain the momentum expected until 2025 in the future 。 Finally, at present, PPG has abundant cash flow and will continue to look for steady investment opportunities. The focus of cash allocation will still be on areas that can drive profit growth. " Bunch concluded

PPG also announced that as of March 31, 2013, the company's total cash and short-term investments amounted to about $2.4 billion. After the divestiture of bulk chemicals business, the company invested about US $140million to buy back the company's shares in February and March. In addition, there is $600million to repay debts due at the end of the first quarter. On April 1st, 2013, the company paid about $950million (including the estimated final adjustment) for the acquisition of AkzoNobel's North American architectural coatings business. The transaction will be incorporated into PPG's second quarter financial report

as stated in the announcement disclosed by the company on January 28, 2013, PPG has completed the divestiture of bulk chemicals business and merged with a subsidiary of Georgia Bay Company in the United States. The new company is named axial Corporation. After the termination of the share exchange offer, the number of common shares outstanding by PPG decreased by about 10.8 million shares, equivalent to about 7%, which also marks the formal completion of the merger transaction. In this financial report, the performance of the former bulk chemicals business in the current year and previous years and the net income brought by the divestiture transaction are included in the discontinued operations

year on year adjustment of financial data

in the first quarter of 2013, the net sales were $3.3 billion, the net profit of continuing operations was $219 million, equivalent to $1.48 diluted earnings per share, and the adjusted net profit of continuing operations was $235 million, equivalent to $1.58 diluted earnings per share. The non recurring after tax expense is US $21million, equivalent to 14 cents of diluted earnings per share, which is mainly used for the settlement of the remaining expenses of the Canadian pension plan and the unpaid environmental remediation expenses of the chemical business; Another $5million (equivalent to 3 cents of diluted earnings per share) was used to pay acquisition related expenses. In addition, the quarterly results also included a non recurring after tax income of $10million (equivalent to 7 cents of diluted after tax earnings per share), which was mainly due to the retrospective impact of changes in the U.S. tax law at the beginning of 2013, which was not included in the previously announced 2012 financial statements. In the first quarter of 2013, the net profit from discontinued operations was $2.2 billion, equivalent to diluted earnings per share of $14.83, mainly from the divestiture and M & A transactions of bulk chemicals business. In the first quarter, the effective tax rate of PPG's continuous profits from continuing operations was 24%

net sales in the first quarter of 2012 was $3.3 billion. The net profit included in non recurring expenses was $13million, equivalent to diluted earnings per share of 8 cents, including a net loss from continuing operations of $50million, equivalent to diluted earnings per share of 32 cents, and a net profit after tax from discontinued operations of $63million, equivalent to diluted earnings per share of 40 cents. Non recurring after tax expenses in the first quarter were $266million, equivalent to diluted earnings per share of $1.73. Excluding non recurring expenses, the adjusted net profit and diluted earnings per share in the first quarter were $279 million and $1.81 respectively, of which the net profit contributed by continuing operations was $216 million, equivalent to $1.41 diluted earnings per share, and the after tax net profit from discontinued operations was $63 million, equivalent to 40 cents diluted earnings per share

financial performance of all businesses

in the first quarter of 2013, the sales volume of high-performance coatings business was $1.1 billion, a decrease of 2% over the same period last year, mainly due to a year-on-year decrease of 5% in sales volume, but its impact was partially offset by the business sales revenue within one year of acquisition and the increase in pricing. The sales momentum in this quarter mainly comes from the continued strong demand for aviation coatings. Although the sales day in this quarter was 2 days less than that in the same period last year, and last year, due to the good climate and the early commencement of paint works, resulting in a higher base of comparison last year, the sales of architectural coatings in the United States still increased in the first quarter of this year. In terms of negative factors, the number of new ships fell further due to the continued weakness of industrial demand. The sales of automotive touch up paint also declined due to the downturn in the European market. Overall, the high-performance coating business achieved a net profit of US $172 million in the first quarter, up 8% from the same period last year, mainly due to strong operating performance, strict cost control measures, and the cost saving effect of restructuring activities, which offset the impact of declining sales and inflation

the industrial coating business achieved sales of $1.2 billion in the first quarter, an increase of $107 million over the same period last year, an increase of 10% year-on-year, mainly due to sales growth and acquisition projects. The global sales volume of automotive OEM (original equipment manufacturer) coatings increased by 8%, and the sales volume in various regions, including Europe, increased to varying degrees. The demand for industrial coatings in various regions and end markets is uneven. Among them, the Asia Pacific market continues to grow steadily, while the performance of North America is stable, while most markets in Europe are still declining. Fewer graphene materials can be used in polymers to achieve better conductivity. The packaging coating business increased slightly over the same period last year, mainly driven by emerging regions. The overall net profit of industrial coatings business in the first quarter was US $178million, an increase of 19% year-on-year. The increase in profits was mainly due to the increase in sales, strict cost control and the reduction in operating costs brought about by the restructuring project

in the first quarter, the building coating business in Europe, the Middle East and Africa (EMEA) achieved sales of $454million, a decrease of $63 million compared with the same period last year, a year-on-year decline of 12%, mainly due to the overall downturn of the regional economy, resulting in a decline in sales. In addition, due to the small number of sales days and the bad weather conditions, the overall business performance was poor. However, despite the decline in sales, the business still achieved a net profit of $20million in the first quarter, an increase of $4million year-on-year, mainly due to active cost control measures and cost savings related to restructuring

the sales of optical products and special materials business in the first quarter of 2013 reached US $314million, a decrease of US $20million compared with the first quarter of last year, a year-on-year decline of 6%. In the first quarter of last year, the performance of optical products business hit a new high driven by the recovery effect after the floods in Thailand at the end of 2011. The decline in sales in this quarter mainly reflects that the business has returned to the traditional seasonal sales trend, coupled with the weakness of the U.S. consumer market for optical products. However, thanks to the successful launch of the seventh generation transmission (R) lens in February, the sales of optical products in Europe increased, and the demand for silicon products increased slightly, which partially offset the impact of market weakness. The overall net profit of optical products and special materials business in this quarter was US $99 million, a year-on-year decrease of 9%, mainly due to the decrease in sales, while the decrease in costs alleviated its impact to a certain extent

the glass business achieved sales of $256million in the first quarter, basically unchanged from the first quarter of last year. Among them, the sales volume of flat glass increased, but it was offset by the weakening demand for glass fiber products and the decline in prices. Despite the significant decline in production costs, the net profit of glass business in this quarter was $5million, a decrease of $3million year-on-year, due to the lower pricing of glass fiber products, the reduction in equity earnings, and the rise in major costs such as natural gas

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