The hottest PPG industry announced another record

PPG industry announced a new high in the first quarter of 2014

· net sales in the first quarter reached US $3.6 billion, with a year-on-year increase of 17%

· diluted earnings per share after adjustment of continuing operations was US $1.98, with a year-on-year increase of more than 40%

· global sales increased by 5%, more than twice the growth rate in recent quarters

· profits in major regions hit new highs, and net profits in Europe increased by 39% year-on-year

· by the end of the first quarter, Cash and short-term investments totaled $3billion

on April 22, 2014, Pittsburgh - PPG industries (NYSE: PPG) recently announced that the net sales of its continuing operations in the first quarter of 2014 was $3.6 billion, an increase of $528 million over the same period last year, an increase of 17% year-on-year. In the first quarter of 2014, the net profit from continuing operations was $277million, equivalent to diluted earnings per share of $1.97. Excluding the acquisition related costs of $2million (equivalent to 1 cent of diluted earnings per share), the adjusted net profit of continuing operations in the first quarter was $279million, equivalent to $1.98 diluted earnings per share

as a reference, the net profit and diluted earnings per share of continuing operations in the first quarter of 2013 were $191 million and $1.29 respectively, and the adjusted net profit was $207 million, equivalent to diluted earnings per share of $1.39. The non recurring after tax expenses are US $21million, equivalent to 14 cents of diluted earnings per share, which are mainly used for the settlement of the remaining expenses of the pension plan and the unpaid environmental remediation expenses; 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 affected by the retrospective impact of changes in the U.S. tax law in early 2013

charles E. bunch, chairman and CEO of PPG, said: "In the first quarter of this year, our global sales volume increased by 5% over the same period last year, the highest level in the past three years. Not only that, our growth rate in all regions has accelerated, among which the sales volume in the European market increased by 5% year-on-year, mainly benefiting from the gradual recovery of the European economy. From the perspective of business departments, all business departments led by automotive OEM coatings and aviation have achieved growth to varying degrees. We are in these terminal markets Its strong performance continues to exceed the level of its global peers. "

"Thanks to the leverage of effectively improving market demand and positive cost reduction measures, the first quarter performance was excellent. In addition, our cash deployment projects in the past few years are continuously promoting the company's profit growth, and the acquisition projects have also achieved the cost synergy response goal. Therefore, the adjusted earnings per share from continuing operations in the first quarter increased by more than 40% over the same period last year, and the profitability of all regions has improved Improve. Our first quarter profit also fully compensated for the loss of profits due to the recent business divestiture. " Bunch added

looking ahead, bunch pointed out, "We expect that the global business will continue to maintain steady growth, but the performance of various regions and end markets may be uneven. PPG continues to play a balanced coating product structure in various regions and end markets, which provides us with broad development opportunities and minimizes the impact of single business fluctuations. In addition, PPG currently maintains abundant cash flow and will continue to look for steady investment opportunities, cash The focus of allocation will still be on areas that can drive profit growth, such as acquisitions and share repurchases. "

division of business departments and termination of business operations in PPG's financial statements

on March 31, PPG officially divested 51% of the equity of the transition optical joint venture and 100% of the equity of its solar lens business. In the financial statements, the financial data of the divested businesses are classified as discontinued operations. In addition, in the first quarter financial report of 2014, PPG adopted a new business structure division, and the three business divisions and their corresponding businesses are specifically divided as follows:

high performance coatings - aviation, architectural coatings in the Americas and Asia Pacific region, architectural coatings in Europe, the Middle East and Africa (EMEA), automotive touch up paint, industrial protection and marine coatings

industrial coatings - Automotive OEM (original equipment manufacturer) coatings, industrial coatings, packaging coatings, Special coatings and materials

glass fiber, flat glass

in the first quarter of 2014, the construction can only be carried out in the "skylight" time at night. The financial performance of various businesses

in the first quarter of 2014, the sales volume of high-performance coatings business was $2billion, an increase of $429million over the same period last year, an increase of 27% year-on-year. Among them, 23% of the sales growth came from newly acquired businesses, 3% came from sales growth, and the rest benefited from changes in exchange rates and prices. The sales of automotive touch up paint and aviation paint in all regions have increased, reflecting the continued recovery of the global industrial market. Excluding the positive impact of the acquisition business, the net sales of architectural coatings in North America increased slightly compared with the same period last year, the performance of various sales channels was uneven, and the sales in North America were affected by bad weather. The sales volume of architectural coatings in Europe, the Middle East and Africa (EMEA) increased by a medium single digit compared with the first quarter of last year, mainly due to the recovery of demand in some regions and favorable climatic conditions. In terms of industrial protective coatings, the synergy related to the acquisition led to the growth of sales and offset the impact of weak sales of ship coatings. The decline in demand for new ships is still the main factor affecting sales in this quarter, but this trend has shown signs of stabilizing compared with previous quarters. On the whole, driven by the endogenous growth of net sales and the acquisition business, the high-performance coating business achieved a net profit of US $248 million in the first quarter, an increase of US $56 million over the same period last year, with an increase of 29% year-on-year

the industrial coating business achieved sales of $1.4 billion in the first quarter, an increase of $89 million over the same period last year, an increase of 7% year-on-year, mainly driven by a 7% increase in sales. Sales in all regions have increased to varying degrees. The global sales volume of automotive OEM coatings increased by more than 10%, significantly exceeding the overall growth level of the industry of about 4%, and strong sales growth momentum appeared in all major regions. The sales volume of industrial coatings and special coatings and materials business also increased steadily, with North America and the Asia Pacific region experiencing the fastest growth. The sales volume of packaging coatings fell, which was mainly dragged down by the decrease in sales in Europe. The overall net profit of industrial coatings business in the first quarter was US $231million, an increase of US $33million over the first quarter of last year, up 17% year-on-year. The increase in sales has become the main driving force of profit growth

the glass business achieved sales of 266million US dollars in the first quarter, an increase of 10million US dollars over the same period last year, an increase of 4% year-on-year. The improvement of global glass fiber demand offset the impact of the decline in flat glass sales to a certain extent, thus driving the overall sales volume of the glass business to increase by 3% year-on-year. Although the price of flat glass increased compared with the same period last year, due to the expected maintenance and repair costs of up to $12million, coupled with the rise in transportation and natural gas costs, to some extent offset the gains brought by the increase in sales, the net profit of the glass business in this quarter was $4million, down $1million year-on-year

discontinued operations

the net profit of discontinued operations includes PPG's attributable profit in the full line of sight optical joint venture and its solar lens business in the first quarter of 2014, as well as the net income of $946 million from the divestiture of these businesses in the first quarter (as of March 31, 2014). The performance with high oil and solvent resistance in the first quarter of 2013 also includes the profit contributed by PPG's original bulk chemical business (divested on January 28, 2013) and the net income from the divestiture of this business of about $2.2 billion

the financial figures of the company in the current year and last year have been adjusted according to the division of new business structure. For more information on the company's historical financial data, please refer to the PPG annual report as of December 31, 2013

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