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PPG Industries – Record fourth quarter, full year earnings per share

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PPG Industries (NYSE:PPG) reported net sales for the fourth quarter 2011 of $3.5 billion, an increase of 4 percent versus the prior year’s fourth quarter. Net income for the quarter increased to $216 million, or $1.39 per diluted share. Fourth quarter 2010 net sales were $3.4 billion, and net income was $205 million, or $1.24 per diluted share.

  • Fourth quarter 2011 sales of $3.5 billion; full year 2011 sales of $14.9 billion
  • Record fourth quarter earnings per share of $1.39, up 12 percent versus 2010
  • Record full year earnings per share of $6.87
  • Repurchases totaling 2.7 million shares during quarter, 10.2 million shares during 2011
  • Cash and short-term investments of $1.5 billion at end of 2011
  • 2011 return on capital of 16.6 percent

PPG’s annual sales for 2011 were $14.9 billion, an increase of 11 percent versus 2010 sales of $13.4 billion. PPG’s full year 2011 net income was $1.1 billion, or $6.87 per diluted share, versus 2010 net income of $769 million, or $4.63 per diluted share. Full year 2010 adjusted net income was $854 million, or $5.14 per diluted share. The company’s full year tax rate on ongoing earnings was 25 percent in 2011 and 26 percent in 2010. A Regulation G Reconciliation of adjusted net income to reported net income is included below.

“PPG achieved record earnings per share each quarter this year by focusing on strong execution in its global businesses, aggressive cost management and amplified cash deployment,” said Charles E. Bunch, PPG chairman and CEO. “In so doing, we delivered the best full year earnings per share in PPG’s history.


“This strong performance was achieved despite moderating global growth rates during the fourth quarter,” Bunch said. “During the year, we experienced uneven economic conditions, persistent raw material inflation, and continued anemic construction activity in developed regions. However, the geographic and end-use market diversity of our business portfolio continued to be an important benefit in 2011.”

For the fourth quarter, Bunch noted that volumes were flat with the prior-year period, as some customers curtailed inventory and remained cautious with their ordering patterns in light of economic uncertainty. This was most evident in Europe, where overall sales volumes fell by 1 percent, and in PPG’s Commodity Chemicals segment.

However, Bunch said that PPG experienced strengthening global demand during the fourth quarter in several end-use markets, including aerospace, automotive manufacturing and several general industrial markets. He added that this higher demand was supplemented by PPG market share gains.

“During the quarter, we continued to aggressively pursue price increases and made further progress in countering high raw material cost inflation. Although prices of many raw materials have stabilized, we plan to implement additional price increases in 2012 to offset the inflation we have already absorbed,” Bunch said.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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