PPG reports Q2 2016 results

PPG has reported second quarter 2016 net sales of US$4.1bn, down less than one percent vs the prior year. Net sales in local currencies grew by more than one percent yr-on-yr and acquisition-related sales contributed more than one percent. Sales volumes and selling prices were flat vs the prior-year period. Unfavourable foreign currency translation impacted net sales by more than two percent or about US$95M.

Second quarter 2016 reported net income was US$370M or US$1.37/diluted share. Second quarter 2016 adjusted net income was US$498M or US$1.85/diluted share. Adjusted net income excludes net after-tax charges totaling US$128M or 48 cents/diluted share, including: asbestos settlement funding-related taxes of US$128M or 48 cents/diluted share; asset write-downs of US$8M or three cents/diluted share; transaction-related costs of US$5M or two cents/diluted share; and a gain on the sale of the company’s minority ownership interest in Pittsburgh Glass Works of US$13M or five cents/diluted share.

PPG reiterated its commitment to deploy US$2.0bn to US$2.5bn of cash, in years 2015 and 2016 combined, on acquisitions and share repurchases.