PPG Industries says third-quarter sales volumes were flat year-on-year, but higher prices pushed profit higher. The company reported net income of $311 million ($1.96/share) for the quarter ended September 30, 19% higher than the year-ago quarter. Analysts expected the company to post earnings of $1.92/share, as reported by Thomson Reuters (
Performance coatings income increased 9%, to $190 million. Improved volumes in aersopace and automotive refinish businesses offset lower volumes in the protective and marine coatings, PPG says.
Industrial coatings income was up 17%, to $53 million. Volumes grew slightly on emerging-market growth and increased automotive builds. Optical and specialty materials income increased 13%, to a quarterly record of $82 million. Higher pricing and consistent growth in emerging regions and North America outweighed declining volumes in
Commodity chemicals income surged 73%, to $104 million, despite several unplanned outages that curbed volumes and increased maintenance costs. The company says higher prices were a key factor. Glass was the only segment to post a decline, falling 28% to $23 million. The company cites lower volumes and higher maintenance costs.
Looking forward, the company expects normal fourth-quarter demand patterns and raw material inflation to level off.
“Our cash position remains strong, and we intend to continue to focus cash deployment on earnings growth initiatives,” says PPG chairman and CEO Charles Bunch. The company, which ended the quarter with approximately $1.3 billion in cash and short-term investments, announced earlier this year that it intended to spend between $750 and $1/5 billion on acquisitions, share buybacks, and debt repayments by the end of 2011.