Protective and decorative coatings company PPG Industries, Inc. (PPG: Quote) reported Monday a profit for the fourth quarter that increased from last year, reflecting sales growth. Stripping down charges, adjusted earnings per share matched analysts’ expectations, while quarterly revenues topped their estimates.
“Our record fourth quarter results capped off an exceptional year for the company, driven by excellent operating performance and several significant strategic actions that have accelerated the pace of our portfolio transformation,” Chairman and CEO Charles Bunch said in a statement.
Pittsburgh, Pennsylvania-based PPG reported net income of $227 million or $1.46 per share for the fourth quarter, higher than $216 million or $1.39 per share in the prior-year quarter.
Excluding charges, adjusted net income for the latest quarter was $238 million or $1.53 per share. On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.53 per share for the fourth quarter. Analysts’ estimates typically exclude special items.
Net sales for the quarter grew to $3.65 billion from $3.52 billion in the same quarter last year, and topped fourteen Wall Street analysts’ consensus estimate of $3.59 billion.
“During the quarter, as we did during the first nine months, we grew our sales and earnings despite moderate overall economic conditions that varied by region and end-use market, and continued negative impacts from currency translation,” Bunch added.
Performance coatings sales in the fourth quarter edged up 1 percent to $1.15 billion, and sales at industrial coatings grew 9 percent to $1.11 million from last year.
Sales for the architectural coatings – Europe, Middle East and Africa or EMEA, increased 4 percent to $465 million, and optical and specialty materials delivered sales of $272 million, up 5 percent from last year.
Commodity chemicals sales edged up $7 million to $405 million, while sales for glass segment declined $15 million to $241 million from last year.
For fiscal 2012, the company reported net income of $9.41 million or $6.06 per share, lower than $1.10 billion or $6.87 per share in the prior year.
Excluding charges, adjusted net income was $1.23 billion or $7.94 per share. Analysts expected the company to report earnings of $7.94 per share for fiscal 2012.
Net revenues for the full year grew 2 percent to $15.20 billion from $14.89 billion in the previous year. Street was looking for full-year 2012 revenues of $15.16 billion.
Looking ahead, Bunch said he anticipates economic trends will remain varied by region in 2013, with a solid growth bias remaining in North America, improving growth prospects in Asia and subdued activity levels in Europe.
The company also anticipates additional acquisition- and separation costs in the first quarter of fiscal 2013, related to the separation of the commodity chemicals business and merger with a subsidiary of Georgia Gulf Corp. (GGC).
The company also expects incremental 2013 savings of between $70 million and $80 million from its previously announced restructuring program. The company added that it it remains on track to complete the necessary actions to separate the commodity chemicals business, and expects the transaction to close late this month.
PPG closed Friday’s regular trading session at $142.10, up $0.27 on a volume of 2.85 million shares. In the past 52-week period, the stock has been trading in a range of $86.74 to $142.87.
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by RTT Staff Writer
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