PPG Industries (Pittsburgh, PA) reported that it ended the second quarter of 2009 with more than $1 billion of cash on hand and with an increase in earnings over Q4 2008 and Q1 2009. Sales for Q2 2009, which ended June 30, were $3.1 billion, a decline of 30% and $1.4 billion, versus Q2 2008.
Charles E. Bunch, chairman and CEO, stated, “While sales and earnings were down versus last year, our cash generation was up 25%, and our earnings rose considerably in comparison to the previous two quarters.” He noted that the coatings segments combined with the Optical and Specialty Materials segment accounted for 90% of total segment earnings and were considerably stronger than the previous quarter. “Specifically, our Architectural Coatings—EMEA and Performance Coatings segments delivered nearly flat year-over-year earnings in local currencies,” said Bunch.
The Performance Coatings segment decreased by 16%, or $203 million, compared to Q2 2008. The protective and marine coatings and aerospace businesses experienced mild volume declines.
The Industrial Coatings segment’s sales fell by $411 million, or 36%, and segment earnings were $28 million, down by $81 million from Q2 2008. However, earnings in the segment were $68 million higher than in the fourth quarter of 2008.
Architectural Coatings—EMEA segment fell by $140 million, or 21%, but volume trends improved from Q1 2009.
Optical and Specialty Chemicals were down by $55 million, or 18%, as a result of lower sales volumes, including a 35% decline in silicas business sales. Commodity Chemicals had a sales decline of $176 million, or 36%.
Glass segment sales decreased by $374 million compared with the prior year due largely to the AG&S business divestiture, according to the company.