PPG Announces 2017 Second Quarter Financial Report

· Net sales of US$3.

· Earnings per share from continuing operations of $1.

· Despite being affected by unfavorable exchange rate factors, adjusted earnings per share from continuing operations reached US$1.

· Take measures to increase prices to cope with upward pressure on raw material costs

· Continue to implement active cost control and further benefit from the 2016 business restructuring

It is expected that a total of at least US$3.

Summary of the performance of each business department in the second quarter of 2017

l In the second quarter of 2017, net sales of the high-performance coatings business were US$2.

Driven by the mature market, the automotive refinish business achieved steady organic growth

In the second quarter of 2017, the high-performance coatings business achieved a net profit of US$413 million, a decrease of US$15 million compared with the same period last year, a 4% decrease year-on-year.
The depreciation of the Mexican peso, British pound and euro dragged down the high-performance coatings.
The net profit of the business is approximately US$10 million
.
Nevertheless, thanks to the increase in sales prices and the management and production cost savings brought about by the previous business restructuring, the adverse effects of rising raw material costs have been completely offset, and the profit growth of the performance coatings business has been boosted
.

l Industrial coatings business achieved net sales of US$1.
51 billion in the second quarter, an increase of US$61 million over the same period of the previous year and a year-on-year increase of more than 4%
.
Sales increased by approximately 3% year-on-year, and the acquired business contributed US$65 million (approximately 4%) in sales
.
Although the company has raised prices to cope with the pressure of rising raw material prices, the average selling price in the second quarter fell slightly compared with the same period last year
.
Unfavorable exchange rates dragged down net sales of US$25 million (nearly 2%)
.

Automotive original equipment manufacturer (OEM) coating sales achieved low-single-digit growth compared to the same period last year, which exceeded the growth rate of the global automotive industry (a slight decline year-on-year)
.
The total sales volume of industrial coatings, specialty coatings and materials business also achieved mid-single-digit growth, outperforming global peers for six consecutive quarters
.
Sales in all major regions and end markets have increased compared with the same period last year
.
The sales volume of packaging coatings was basically flat year-on-year, mainly due to the strong performance in the same period last year and the sales volume achieved high single-digit growth
.

In the second quarter, the industrial coatings business achieved a net profit of US$264 million, a decrease of US$28 million from the same period last year and a year-on-year decrease of 10%
.
Profits mainly come from rising sales, cost savings brought about by business restructuring, and synergies brought about by the acquisition of business
.
However, the sharp increase in raw material costs, coupled with the decline in average selling prices, led to a decline in net profit in the second quarter
.
In addition, the exchange rate factor dragged down profits by approximately US$5 million
.

l The cost of the company in the second quarter was US$27 million, a year-on-year decrease of US$33 million, mainly due to the reduction in incentive-related compensation expenses
.
Earlier income was 5 million US dollars, while last year there were 10 million US dollars of expenses, mainly due to the decrease in post-employment benefits, the increase in equity income, and the final settlement of Pittsburgh Corning’s asbestos-related obligations
.