PPG reports FY 2017 results

PPG’s Q4 2017 net sales reached approximately US$3.7bn, up nearly 8% versus the prior year.

Sales volumes increased by 3% year-over-year and selling prices improved sequentially for the third consecutive quarter, adding less than 1% to sales growth.

Full-year 2017 reported net sales from continuing operations were approximately US$14.8bn, up more than 3% versus the prior year.

Q4 2017 reported net income from continuing operations was US$184M, or 72 cents per diluted share, including an unfavorable impact of 5 cents per diluted share stemming from the natural disasters that occurred in the third quarter.

"In the fourth quarter, we delivered solid and balanced sales growth in each major region, and both reporting segments achieved at least 2% sales volume growth,” said Michael H. McGarry, PPG chairman and Chief Executive Officer.

Performance Coatings segment Q4 net sales were US$2.1bn, up US$144M, or more than 7%, versus the prior year.

Net sales benefited from higher selling prices across most businesses and regions, and segment sales volume growth of more than 2%.

Automotive refinish coatings organic sales improved by a mid-single-digit percentage driven by market outperformance in the USA and Europe, and strong emerging region demand.

Aerospace coatings sales volumes growth accelerated with a mid-single-digit percentage gain over the prior year period, aided by improving demand in the USA and Asia.

Architectural coatings – Americas and Asia Pacific sales volumes advanced a low single-digit percentage year-over-year, with differences by channel and region.

Latin American architectural coatings sales volumes were flat versus the prior year, as growing end-use market demand was offset by lingering unfavorable impacts of the Mexican earthquakes. Architectural coatings – EMEA sales volumes were consistent with the prior year, an improvement versus the third quarter, as results remained mixed by country.

Aggregate protective and marine coatings sales volumes were flat year-over-year, with protective coatings sales growth offsetting moderating marine coatings contraction.

Industrial Coatings segment fourth quarter net sales were about $1.6 billion, up $121 million, or more than 8%, versus the prior-year period.

Automotive original equipment manufacturer (OEM) coatings sales volumes increased by a low-single-digit percentage year-over-year, consistent with global automotive industry production rates.