PPG Announces 2018 Third Quarter Financial Report

• Diluted earnings per share from continuing operations of US$1.
  
  

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Pittsburgh, United States, October 22, 2018 – PPG (NYSE: PPG) recently announced its third-quarter financial report for 2018, with net sales from continuing operations of approximately US$3.

In the third quarter of 2018, continuing operations achieved a net profit of US$368 million, equivalent to a diluted earnings per share of US$1.

In the third quarter of 2017, the net profit from continuing operations and the adjusted net profit were both US$393 million, equivalent to US$1.

Michael McGarry, Chairman and CEO of PPG, said: "In the third quarter, net sales in local currency rose by more than 3%

"Looking forward, we currently expect that the performance of various businesses in the fourth quarter will be comparable to previous years, and that global economic growth will maintain a good momentum

"Finally, in the first three quarters of this year, the company repurchased nearly $1.

Summary of the performance of each business department in the third quarter of 2018

  The sales volume of aerospace coatings achieved low double-digit growth, mainly due to the increase in demand for PPG products in major markets

  The endogenous sales of architectural coatings in the Americas and the Asia-Pacific region experienced low-single-digit declines compared to the same period last year, with uneven performance across channels and regions

  The high-performance coatings business achieved a net profit of US$331 million in the third quarter, a year-on-year decline of 9%, of which the foreign exchange loss dragged down the net profit of about US$5 million

  Automotive original equipment manufacturer (OEM) coating sales were basically the same as the same period last year, slightly higher than the growth rate of global automotive production
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The sales volume of general industrial coatings has steadily increased, and the growth rate of the European and Latin American markets is higher than the industry average
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As more and more customers adopt PPG's new technology, the sales volume of packaging coatings has achieved a mid-single-digit growth, and the growth rate has outpaced the industry average
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  In the third quarter, the industrial coatings business achieved a net profit of US$169 million, a decrease of US$56 million year-on-year, a decrease of approximately 25%.
Among them, unfavorable exchange rate factors dragged down the net profit of approximately US$5 million
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The decline in net profit was mainly due to the sharp rise in raw material and logistics costs, which offset the impact of rising sales prices and increased sales
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  Due to the decrease in employee incentive costs and post-employment benefits, the company's operating expenses in the third quarter decreased compared with the same period last year
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The company expects that the effective tax rate after the adjustment of continuing operations for the whole year will be approximately 23-24%
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