PPG Industries will use $1.5-2.5 billion in cash for acquisitions and share buybacks in 2015-2016

China Coatings Network
News: At the end of the year, a number of
coatings companies
announced their fourth quarter and full-year 2014 results, as the official website of PPG Industry Chinese said, PPG Industry 2014 can be "perfect". Full-year sales rose 8 percent to $15.4 billion. Adjusted net profit from continuing operations was $1.36 billion, up 22.5% year-on-year. Over the past decade or so, PPG has been reshaping its business structure through divestitures and mergers and acquisitions: in 2004,
coatings
accounted for only 65% of PPG's overall business; That was 93% in 2013, while sales in the paint business rose from $5 billion to about $13 billion. It is worth noting that PPG Industries will still have $1.5-2.5 billion in cash for acquisitions and share buybacks in the next two years, and will continue to facilitate the deployment of PPG Industries in two strategic directions, namely, optimizing the market segment structure and establishing leadership positions in each end market; Optimize your regional portfolio to increase your market share in emerging markets.
's full-quarter sales were up 4% year-on-year, with growth in all regions maintaining or exceeding last quarter's levels
fourth quarter adjusted diluted earnings per share for continuing operations was $2.11, up 26% year-on-year
's Comex business Started contributing to sales and earnings growth
$300 million in stock repurchases in the fourth quarter and $750 million in full-year repurchases
net sales of $15.4 billion in 2014, up 8% year-on-year, a record New
2014 adjusted diluted earnings per share for continuing operations reached $9.75, up 27% YoY, the highest level on record
January 21, 2015, Pittsburgh, U.S.A. - P PG Industries Inc. (NYSE: PPG) recently reported net sales of $3.71 billion in continuing operations in the fourth quarter of 2014, up $207 million from $3.5 billion a year earlier, up 6 percent from a year earlier. Net sales in local currency terms increased by 10 per cent year-on-year, with the acquisition business contributing $130 million, or about 4 per cent.
net income from continuing operations in the fourth quarter of 2014 was $86 million, or $0.62 per diluted share. Adjusted net income from continuing operations was $293 million, or $2.11 per diluted share. Adjusted net income excluding debt refinancing-related after-tax expenses of $200 million (equivalent to diluted earnings per share of $1.44), after-tax expenses of $36 million (equivalent to diluted earnings per share) related to the Comex acquisition transaction, and earnings of $29 million (equivalent to $0.21 per diluted share) resulting from a reduction in foreign taxes and fees for the previous year. Global
Coatings network
understands that, without these adjustments, the effective tax rate for adjusted profits in the fourth quarter was 23.5% and the effective tax rate for the full year was 23.9%, in consistent with the company's previous estimates.
, net income from continuing operations was $237 million, or $1.66 per diluted share, in the fourth quarter of 2013. Adjusted net income was $240 million, or $1.68 per diluted share, excluding acquisition-related costs of $3 million, or 2 cents per diluted share.
quarter, net sales and adjusted earnings from our ongoing operations reached new highs. Charles E. "We have achieved more than 20 per cent adjusted earnings growth for several years in a row, and our strong financial performance demonstrates PPG's aggressive product structure management, profitable cash deployments and commitment to operational efficiency," Mr Bunch said. Adjust
ed earnings per share for the fourth quarter rose 26% from a year earlier, with all business units reporting growth of more than 10%. While the economy remained weak throughout the year, sales rose 4 per cent, with all major regions able to sustain or exceed third-quarter sales growth. In addition,
of our
coatings businesses maintained solid growth and continued to recover in sales of aerospace materials and automotive repair paints. Bunch said.
strategically, we continued to expand our business in 2014 with fruitful results, such as the successful completion of the acquisition of Comex in the fourth quarter. We are delighted that an excellent coatings company like Comex has joined the PPG family. At the same time, we continue our tradition of returning shareholders, returning a total of $1.1 billion to shareholders through dividends and share buybacks throughout the year. In
April 2014, PPG increased its dividend per share by 10%. The company has provided year-end dividends for 115 consecutive years and has increased its dividend per share for 43 consecutive years.
PPG has begun to benefit from a sustained global economic recovery, thanks to its large business scope, extensive product line, and previously completed business restructuring and stringent cost controls. That is why we have achieved remarkable results in the past year. Bunch added: "After 2015, we expect growth to continue to be uneven across regions, with North America and Asia expected to continue their strong growth pace in 2014, while European markets are likely to continue their slow recovery without major changes, but performance will remain strong and weak across countries." If oil prices remain at their current lows, we expect the European market to benefit significantly, driving a rapid recovery in the European economy. "
" in the coming year, PPG will continue to focus on new product development, improve operational efficiency, and adhere to a profit-oriented cash deployment strategy. We are still actively looking for suitable merger opportunities and will continue our share buyback policy. In 2015 and 2016, we plan to spend a total of $1.5-2.5 billion in cash on acquisitions and share buybacks in the hope of creating greater value for our shareholders. Bunch concluded.
PPG also announced that its total cash and short-term investments totaled about $1.2 billion at the end of 2014, with 1.4 million shares worth $300 million repurchased in the fourth quarter. In addition, PPG disclosed a rough use of cash for the full year: $585 million in capital expenditures, $360 million in dividends, $2.5 billion in acquisition-related expenses, including the repayment of liabilities of the acquired company, and $750 million in repurchases of about 3.8 million shares of the company's stock.
operating net sales for the full year 2014 were $15.4 billion, up 8% from $14.3 billion a year earlier. Among them, the acquisition business contributed about 4% sales growth, sales volume and price increase contributed sales growth of 4% and 1%, respectively, but the exchange loss had a negative impact on sales of 1%. Net income from continuing operations in 2014 was $1.13 billion, or $8.10 per diluted share (2013 net income was $950 million, or $6.55 per diluted share). Adjusted net income from continuing operations was $1.36 billion, or $9.75 per diluted share (2013 adjusted net income was $1.11 billion, or $7.67 per diluted share).
In the fourth quarter of 2014, sales of the high-performance coatings business were $2.1 billion, up $184 million from the same period last year and up 10% year-over-year, primarily due to new acquisitions, including $175 million in sales from the Comex acquisition completed in November. Overall sales rose 2 per cent year-on-year and sales prices rose 1 per cent, but adverse exchange rate factors dragged down sales by 4 per cent. In local currency terms, sales in all major regions grew at a rate comparable to or above the level of the third quarter. In each business, the aerospace materials and automotive finish paint business continued to maintain solid sales growth, reflecting a rebound in end-market demand. North
building
sales grew in the low to mid-single digits, with national distributors and the company's own stores performing in much the same way. Sales of architectural coatings in Europe, the Middle East and Africa (EMEA) fell 2 per cent from the recovery period in the fourth quarter of last year. Global coating network learned that the market demand in different countries is still very different, some countries demand rebounded, but some countries are still weak sales. Overall sales of industrial protection and marine coatings
increased year
year-on-year, helped by improved market demand in Asia. The high-performance coatings business made a net profit of $239 million in the fourth quarter, up $37 million from a year earlier and up 18 percent from a year earlier, helped by sales growth and earnings from acquisitions, including a median double-digit profit margin for Comex.
s industrial coatings business reported sales of $1.34 billion in the fourth quarter, up $15 million from a year earlier and up 1 percent from a year earlier. Overall sales rose 5 per cent year-on-year, but exchange rate factors dragged down sales by 4 per cent in the quarter. In each business, automotive original equipment manufacturers (OEM) coatings in all major regions of the effective sales increased year-on-year, total sales achieved medium to high single-digit growth, significantly exceeding the overall growth level of the industry of about 2%. Sales of industrial coatings and specialty coatings and materials businesses have also risen steadily, particularly in the U.S. and Canada. Sales of packaging coatings also increased year-on-year, with the European market also beginning to stop falling and rebound. Overall net profit from the industrial coatings business was $223 million in the fourth quarter, up $21 million from the fourth quarter of 2013 and up 10% year-on-year, mainly due to higher sales and lower production costs.
glass business achieved sales of $272 million in the fourth quarter, up $8 million from a year earlier and up 3% year-on-year, mainly due to higher sales volumes and sales prices, but the exchange rate had a negative impact on results in the quarter. Flat glass sales continued to rise as demand for high value-added products rose in the residential and non-residential end markets, but was offset by a decline in sales of glass fiber. Sales of fiberglass rebounded in Europe in the quarter, but fell in North America as a result of customer inventory adjustments. In the fourth quarter, the glass business made an overall net profit of $33 million, an increase of $11 million over the same period last year. Earnings growth momentum is mainly due to increased sales, increased capacity utilization, and lower costs.