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    Home > Coatings News > Paints and Coatings Market > PPG Announces Financial Results for the First Quarter of 2019

    PPG Announces Financial Results for the First Quarter of 2019

    • Last Update: 2021-07-21
    • Source: Internet
    • Author: User
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    • Realized net sales of approximately US$ 3.
      6
      billion, which was the same as the same period of the previous year (calculated at the same exchange rate)


    •   Continuing operations to achieve diluted earnings per share 1.
      31
      Meiyuan; tune from continuing operations Diluted earnings per share after full 1.
      38
      Meiyuan


    •   Through further increase in sales price and cost management measures, the profit margin continued to achieve a year-on-year increase


    •   Completed the acquisition of Whitford and Hemmelrath

     

    Pittsburgh, 2019 Nian 4 Yue 23 Ri  - PPG (NYSE: PPG ) today announced 2019 first quarter earnings from continuing operations achieved net sales of nearly 36 billion US dollars, a year earlier, a decrease of approximately 4%
    .
    Calculated at constant exchange rate situation, net sales were flat with a year earlier, primarily due to an increase of about an average selling price of
    2.
    6%
    driven
    .
    The total sales volume decreased by about
    3% compared with the same period last year
    .
    The previously announced change in the classification of architectural coatings business customers in the national retail ( DIY ) channel is the main reason for the decline in sales
    .
    Foreign exchange losses have an adverse effect on net sales by more than
    4% , which is approximately US$ 165 million
    .
    The acquisition of related businesses (excluding the divested businesses) contributed less than
    1% in sales growth
    .

    In the first quarter of 2019 , continuing operations achieved a net profit of US$ 312 million, equivalent to a diluted share of US $ 1.
    31
    per share , while the adjusted net profit of continuing operations was US$ 330 million, equivalent to a diluted share of US $ 1.
    38
    per share .
    In the first quarter of 2018 , continuing operations achieved a net profit of US$ 328 million, equivalent to a diluted share of US $ 1.
    31
    per share , while the adjusted net profit of continuing operations was US$ 357 million, equivalent to a diluted share of US $ 1.
    42
    per share .
    The effective tax rate before and after adjustment in the first quarter of 2019 was approximately 24% , which was higher than that in the first quarter of 2018 .
    The effective tax rate before and after adjustment in the first quarter of 2018 was approximately 21% .
    Please see below for detailed information on the performance before and after the adjustment .





    "Although the global macroeconomic situation is not optimistic and the market demand in some industries has declined, compared with the same period last year, the profit margin in the first quarter still increased
    .
    We continue to increase the profit margin by raising the sales price.
    This is our eighth consecutive quarter.
    Take price adjustment measures

    .
    "
    PPG Chairman and CEO Michael McGarry said
    .
    "As the prices of raw materials, as well as logistics and labor costs continue to rise, we have also taken additional measures to offset the various negative effects brought about by this series of cost increases

    .
    "

    “In the first quarter, the sales of aerospace coatings and industrial protective and marine coatings achieved strong double-digit growth
    .
    However, due to
    weak industry demand for automotive original equipment manufacturer ( OEM ) coatings and general industrial coatings, our total Sales volume declined slightly
    .
    In addition, our commitment to the gradual recovery of profit margins has also brought us relatively satisfactory performance results this quarter

    .
    "

    "Currently, we have completed the SEM , Wah Fu and Alzheimer lats three companies of acquisitions
    .
    The future, we will maintain an active acquisitions policy continued to deploy cash to maximize long-term shareholder value

    .
    " McGarry representation
    .

    "Looking forward to the second quarter, compared with the same period last year, we expect that the industry demand in multiple product markets will still be differentiated, but the overall performance will be improved compared to the first quarter of this year
    .
    We will continue to review the cost structure.
    Active management, strive to ensure that product pricing can fully reflect the value of the product, and to integrate management of recent acquisitions

    .
    Currently, we expect the second quarter diluted earnings per share to be approximately between
    1.
    76
    and 1.
    86
    US dollars
    .
    This range will be similar.
    The adverse effects of the exchange losses in the first quarter are taken into account

    .
    "

    "In general, regarding the economic development situation in the second half of this year, especially the economic development situation of the Chinese market, we still believe that there will be a moderate recovery momentum
    .
    We will continue to pay attention to the development and changes of the macroeconomic environment

    .
    When necessary, we will stand ready to take further cost-saving measures

    Excluding the impact of currency changes and other objective, we expect full-year sales growth rate of
    3-5% between earnings growth per share after adjustment at 7% -10% or so
    .

    Summary of the performance of each business department in the first quarter of 2019


    •  
      The functional coatings business achieved net sales of US$ 2.
      1
      billion in the first quarter , a decrease of US$ 52 million from the previous year , a year-on-year decrease of 2% .
      Sales in local currency increased by nearly
      2% , mainly due to the increase in sales prices
      .
      Acquisition-related business
      to enhance sales to annual sales of about 1500 million US dollars, mainly due to automotive refinishing products manufacturer SEM acquisition activity
      .
      Since last year
      the National Retail ( DIY ) customers affect the classification change, first quarter sales lower 2% or so, resulting in a sales decline year on year to about 2% , decrease compared with the same period last year 6000 million dollars
      .
      Unfavorable exchange rate factors also
      had a negative impact on net sales.
      The impact amount was
      US$
      85 million, a year-on-year decrease of nearly 4%
      .
       


        The net sales volume of aerospace coatings business achieved a growth rate of

      more than 10% for the fourth consecutive quarter , thanks to the growth of major technology platforms and strong industry demand .
      Due to weak industry demand in the European market, to a certain extent, the steady performance of emerging markets has been offset, and sales of automotive refinish paints have declined slightly .
      The total sales volume of the industrial protection and marine coatings business increased by approximately
      10% , and both businesses contributed positively to this growth
      .
      The sales of architectural coatings in the Americas and Asia-Pacific regions experienced high single-digit declines compared with the same period last year, and the performance of various channels and regions was uneven

      .
      The same-store sales of self-operated architectural coatings stores of American and Canadian companies maintained low single-digit growth

      .
      Due to changes in customer classification,
      the total sales of national retail ( DIY ) customers and independent dealer channels dropped significantly compared with the same period last year
      .
      Compared with the same period last year, the sales of architectural coatings in Latin America are relatively low due to the impact of Easter holiday promotions

      .
      The sales of architectural coatings in Europe, the Middle East and Africa saw mid-single-digit growth for the second consecutive quarter, mainly driven by product price increases and sales growth

      .


        In the first quarter, the functional coatings business achieved a net profit of US$ 297 million , an increase of US$ 17 million over the same period last year , an increase of approximately 6%
      .
      Among them, the exchange loss has an adverse effect on net profit, and the impact amount is about
      10 million US dollars
      .
      The increase in sales prices, the continuous implementation of cost control, and the adjustment of organizational structure have promoted the increase in net profit, while offsetting the
      negative impact of factors such as the increase in raw material prices and logistics costs and the decline in sales of architectural coatings retail ( DIY ) customer channels in the United States .


    •  
      The first quarter net sales of the industrial coatings business were approximately US$ 1.
      5
      billion, a decrease of nearly US$ 105 million from the same period last year , a year-on-year decrease of 6%
      .
      The product price adjustment of about 2% offset to a certain extent the adverse effects of the 5% decline in sales .
      Thanks to the successful completion of the acquisition of Huafu Company in March , the acquisition-related business contributed approximately US$ 15 million in sales .
      Exchange losses caused sales to fall by US$ 80 million, a decline of about 5% from the same period last year .




        Automotive original equipment manufacturer ( OEM ) coating sales experienced a high single-digit decline compared to the same period last year, mainly due to the decline in global automotive production
      .
      In addition, the decline in demand for automobiles in the Chinese market is also a disadvantage

      .
      The selling price of this business in all major business areas has increased, reaching the company's average price level

      .
      The sales volume of the industrial coatings business declined compared with the same period last year, mainly due to the weak demand for industrial output in multiple business areas

      .
      Compared with the rapid growth in the same period of the previous year, the sales volume of packaging coatings declined in low single digits due to changes in the customer base focusing on applied technology


        The net profit of the industrial coatings business in the first quarter was US$ 218 million, a year-on-year decrease of US$ 21 million, a decrease of approximately 9% , including the adverse impact of foreign exchange losses, which affected approximately US$ 10 million
      .
      The continuous increase in raw material prices and logistics costs and the decline in sales caused by the global industrial downturn have offset to a certain extent the benefits of product price increases and active cost management, resulting in a decline in net profit

      .

    In the first quarter, the two major businesses continued to actively implement cost control measures and strictly implemented the previously announced restructuring plan
    .
    The restructuring plan saved
    US$ 20 million in costs
    in the first quarter and achieved the company's expected goals .
    In addition, the overall operating expenses and historical outstanding expenses in the first quarter totaled approximately US$
    50 million, and the second quarter is expected to be approximately US$ 45 million to US$ 50 million
    .

    The company will continue to conduct the previously announced strategic review of the business portfolio and promises to complete this review by the end of the second quarter of 2019 .

     

    PPG: We protect and beautify the worldTM

      PPG (NYSE : PPG ) has been committed to developing and providing trustworthy paint, coating and material products for customers for 135 years
    .
    Upholding the spirit of dedication and innovation,
    PPG helps customers deal with all kinds of severe challenges and jointly promote the progress of the industry
    .
    PPG is headquartered in Pittsburgh, USA, with operations and R&D institutions in more than 70 countries around the world .
    In
    2018 , the company's global net sales reached 15.
    4
    billion U.
    S.
    dollars

    .
    PPG provides high value-added products and services to customers in the fields of construction, consumer goods, industry, transportation and other fields and their after-sales markets
    .
    For more information, please visit

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