PPG reported second quarter 2017 net sales of $3.8 billion, up about 1 percent versus the prior year. Net sales in local currencies grew nearly 2 percent year-over-year, aided by acquisitions. Selling prices improved slightly versus the prior year and in comparison to recent sequential quarters, reflecting initial efforts to offset raw material cost inflation. Aggregate sales volumes were flat year-over-year with variation by region and business unit. Unfavorable foreign currency translation impacted net sales by nearly 2 percent, or about $65 million.
- Net sales of $3.8 billion, up about 1 percent versus prior year
- Reported earnings per diluted share from continuing operations of $1.95
- Adjusted earnings per diluted share from continuing operations of $1.83, up 6 percent versus prior year including unfavorable impact from foreign currency
- Initial selling price increases underway to address raw material cost inflation
- Aggressive cost management; further benefits from 2016 restructuring program
- Minimum of $3.5 billion of earnings-accretive focused cash deployment targeted in 2017 and 2018 combined
Second quarter 2017 net income from continuing operations was $504 million, or $1.95 per diluted share. Second quarter 2017 adjusted net income from continuing operations was $472 million, or $1.83 per diluted share. Adjusted net income excludes an after-tax gain from the sale of the Mexican Plaka wallboard business of $24 million, or 9 cents per diluted share; a benefit from a legal settlement of $11 million, or 4 cents per diluted share; and after-tax transaction-related costs of $3 million, or 1 cent per diluted share. The effective tax rate for the quarter was 24.1 percent, and the adjusted effective tax rate for the quarter was 24.6 percent.
Second quarter 2016 reported net income from continuing operations was $339 million, or $1.25 per diluted share. Second quarter 2016 adjusted net income from continuing operations was $466 million, or $1.73 per diluted share. Adjusted net income excluded net after-tax charges totaling $127 million, or 48 cents per diluted share, including: net tax effect of asbestos settlement funding of $128 million, or 48 cents per diluted share; an asset write-down of $8 million, or 3 cents per diluted share; transaction-related costs of $4 million, or 2 cents per diluted share; and a gain from the sale of the company’s minority ownership interest in an equity affiliate of $13 million, or 5 cents per diluted share. The effective tax rate for the quarter was 45.2 percent, and the adjusted effective tax rate for the quarter was 24.8 percent.
All figures presented for the current and prior year have been recast to reflect PPG’s former Glass segment as discontinued operations. In the second half of 2016, PPG sold its flat glass and European fiber glass businesses and divested its interests in two Asian fiber glass joint ventures. PPG anticipates the pending sale of its North American fiber glass business will be finalized in the second half of 2017. Accordingly, the company expects its effective tax rate on ongoing earnings from continuing operations will be lower than its prior forecast and will be between 24.5 and 25.0 percent.
PPG reported today that on June 30, 2017, cash and short-term investments totaled approximately $1.6 billion and that the company had approximately $1.7 billion remaining under its current share-repurchase authorization.
At PPG, we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 130 years.
At PPG, we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 130 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $14.3 billion in 2016.
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