PPG Industries Q4 revenues surge 14%

Fourth quarter 2013 adjusted net income from continuing operations was $258 million, or $1.81 per diluted share, which excludes $4 million, or 3 cents per diluted share, for acquisition-related costs.

Fourth quarter 2012 reported net income and earnings per diluted share from continuing operations were $191 million and $1.23, respectively, and adjusted net income from continuing operations was $194 million, or $1.25 per diluted share, respectively, excluding $3 million, or 2 cents per diluted share, for acquisition-related costs.

Highlights:

- Fourth quarter net sales of $3.7 billion, up 14 percent versus prior year
- Record fourth quarter earnings per diluted share from continuing operations, up 45 percent versus prior year
- Full-year 2013 net sales of $15.1 billion, up 12 percent versus 2012
- Full-year 2013 adjusted earnings per diluted share from continuing operations of $8.28, up 29 percent versus prior year
- Each major geographic region delivered record full-year earnings
- Company repurchased $1.0 billion of stock in 2013
- Year-end cash and short-term investments totaled $1.75 billion

Fourth Quarter 2013 Reporting Segment Financial Results

Performance Coatings segment net sales for the quarter were $1.4 billion, up 25 percent. The increase was due primarily to acquired-business sales, partly offset by a 3 percent decline in segment volumes. Aerospace net sales growth continued, aided by ongoing industry growth and sales from acquired businesses.

Automotive refinish net sales grew in all major regions, including continued emerging-region volume gains and a return to growth in Europe. Excluding the favorable acquisition impacts, architectural coatings sales results by distribution channel were similar to results in recent quarters, including company-owned stores growth of more than 10 percent and lower national retail channel sales due to a previously disclosed change in products sold to a large retail customer.

Lower but stabilizing marine new-build activity remained a large negative impact to segment volumes. Overall, the segment experienced normal seasonal trends, although the size and seasonality of the acquired architectural business amplified the impact in comparison to prior years. Segment earnings of $179 million were up 1 percent as a result of the increased net-sales impacts, partly offset by higher growth-related expenses in aerospace and automotive refinish.

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PPG Industries