| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Paint and Coatings Industry News

Main News Page

PPG Has Record Q4, ‘Excellent’ 2010

Thursday, January 20, 2011

Comment | More

Charles E. Bunch

Boons in Industrial and Performance Coatings helped PPG Industries deliver record fourth-quarter sales and earnings, capping “an excellent year” for the Pittsburgh-based company, the CEO said.

Volumes in the Architectural Coatings’ Americas and Asia/Pacific business were flat, and sales for the Architectural Coatings’ EMEA (Europe, Middle East and Africa) segment declined 7% from the prior year, the company reported.

Sales, Earnings Overview

PPG reported record fourth-quarter sales of $3.4 billion, an 8% increase over the fourth quarter of 2009. Reported net income for the quarter increased to $205 million, or $1.24 per share. Fourth-quarter 2009 sales were $3.1 billion, and reported net income was $142 million, or 85 cents per share.

PPG’s fourth-quarter 2010 adjusted net income was $207 million, or $1.25 per share, compared with $144 million, or 86 cents per share, for Q4 2009.

Annual sales for 2010 were $13.4 billion, a 10% increase over 2009 sales of $12.2 billion. PPG’s full-year 2010 adjusted net income was $862 million, or $5.18 per share, compared with $485 million, or $2.94 per share, for 2009. Reported net income for 2010 increased to $769 million, or $4.63 per share, from $336 million, or $2.03 per share, in 2009.

Both years include an aftertax charge of $2 million, or 1 cent per share, reflecting the net increase in the current value of the company’s obligation under its proposed asbestos settlement, which is pending court proceedings.

Coatings Prices to Continue Climb

“Our record fourth-quarter sales and earnings capped what was an excellent year for PPG and give us momentum heading into 2011,” said Charles E. Bunch, PPG chairman and CEO.

“In the quarter, our Coatings and Optical and Specialty Materials segments combined to post sales and earnings records, despite increasing raw materials costs for coatings. Our Commodity Chemicals and Glass segments continued their significant improvement trends by growing earnings by a combined $90 million year-over-year and delivering solid double-digit operating margins in a seasonally slow quarter.”

The company increased selling prices in each quarter of 2010, and businesses in emerging regions once again grew by double-digit percentages, Bunch said. PPG is implementing price increases in its Commodity Chemicals segment and in each of its coatings segments to fully counter rising raw materials costs, he added.

Sales Still Below 2008

“Our performance for all of 2010 demonstrates how strongly we are emerging from the recession, and we’re only now beginning to see the full earnings power of the company,” Bunch said.

“In the last two quarters, we achieved record earnings per share, and we nearly posted a full-year record despite volumes that remain well below pre-recession levels. Despite a partial recovery, 2010 sales volumes still remained $1.2 billion below 2008 levels.”

Bunch said PPG was operating with a “sharp cost and execution focus” that had cut its costs by more than $500 million since 2008. PPG also repurchased 8.1 million shares during the year.

Coatings Segment Performance

Fourth-quarter Performance Coatings segment sales increased $76 million, or 7%, over last year as a result of higher selling prices and improved volumes in every region, the company said.

Protective, marine and aerospace coatings businesses recorded double-digit percentage growth, and the automotive refinishing business showed “solid growth,” PPG said.

Industrial Coatings segment sales for the quarter rose $90 million, or 10%, over Q4 2009. Volume recovery continued in several industrial end-use markets, particularly in automotive OEM coatings, where share gain supplemented the recovery.

Asia/Pacific remained the strongest growth region, with total fourth-quarter segment sales surpassing those in the United States and Canada. Segment earnings for the quarter were $79 million, a decrease of $10 million from 2009’s fourth quarter. The benefit from improved volumes, lower costs and pricing did not fully offset raw material cost inflation, PPG said

Other Segments, Outlook

Earnings in the Optical and Specialty Materials segments increased by $10 million to $57 million, due mainly to higher sales volumes, offset slightly by increased selling and advertising costs. Segment sales for the quarter increased $23 million, or 9%.

Fourth-quarter Commodity Chemicals segment sales increased $70 million, or 23%, over the prior year due to higher pricing. Segment earnings grew $65 million.

Glass segment sales increased $35 million, or 16%, compared with the prior year. Segment income was $29 million, a $28 million improvement due to lower manufacturing costs, higher volumes and higher pricing, the company said.

“Looking ahead to 2011, we anticipate that the global economic recovery will strengthen and broaden,” Bunch said. “This should drive volume increases for PPG, which we expect to leverage into higher earnings through our continued cost focus.”


Tagged categories: Earnings reports; Finance; High-performance coatings; Marine Coatings; PPG; Protective coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

SSPC: The Society for Protective Coatings

Join SSPC and Enhance
Your Career !

Thermion Inc
Buy Back Program

We are offering $5,000
credit for your old Model
This drive system is
being discontinued by
the manufacturer.
More information at

Built for Tough Jobs

From Epoxies to Urethanes to other high solid coatings, the new Binks Airless 75 delivers a great finish using an ergonomic design. Visit for more information.

International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment

    Polyurethane and Polyurea Sprayed-On Protection

    Buy POLYURETHANE or POLYUREA coatings and spray equipment for years of proven chemical resistance, water- and weather-proofing, and structural improvements.

    Hempel (USA) Inc.

    Efficient systems and high quality products to reduce your maintenance costs. Visit Hempel Protective for more information.

    PPG Protective and Marine Coatings Group
    Industrial strength performance in ONE can.

    Now get the durability and protection of two components in one can: Amercoat® ONE, PSX® ONE and Sigmadur ONE.

    US Minerals
    US Minerals -
    Black Magnum

    With nationwide production and distribution capabilities, U.S. Minerals supplies a complete range of coal slag and other abrasives to meet all of your blasting needs.

    Wasser High-Tech Coatings Inc.
    Wasser Coatings Protect

    Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

    Armakleen Company, The
    ARMEX when nondestructive cleaning is critical

    Use ARMEX to clean, remove paint and degrease a wide variety of substrates including metals, plastics, composites and masonry materials like brick, concrete and natural stone.

    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail