By Tess Stynes
PPG Industries Inc. (PPG) said its second-quarter earnings rose
13% on growth across its major geographic markets, led by
Europe.
Pittsburgh-based PPG, which makes coatings for the auto,
aircraft and other markets, has been realigning its businesses in
recent years to focus more on paint and other coatings from glass
and chemicals.
Last month, PPG reached a $2.3 billion deal to acquire Mexico's
largest paint maker, Consorcio Comex SA, aiming to capitalize on
potential upswing in the country's housing market and a failed
effort by rival Sherwin-Williams Co. (SHW) to do the same. PPG said
it was confident that its deal for Comex would withstand regulatory
scrutiny, which aborted a similar offer by Sherwin-Williams.
In the latest quarter, PPG generated consistent volume growth
and strong earnings in each of its major geographic markets, led by
Europe, where earnings rose 28% thanks to a strengthening economy
and cost-cutting efforts, Chairman and Chief Executive Charles
Bunch said.
The company also saw growth across most of its businesses, led
by automotive OEM and various general industrial and specialty
coatings end-use markets, he said.
PPG--whose paint brands include Olympic and Glidden--reported a
profit of $386 million, or $2.75 a share, up from $341 million, or
$2.35 a share, a year earlier. Excluding items such as
pension-settlement costs and acquisition-related charges, adjusted
earnings from continuing operations rose to $2.83 from $2.28.
Revenue increased 5.1% to $4.08 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$2.77 and revenue of $4.14 billion.
Earlier Thursday, Sherwin-Williams reported that its
second-quarter earnings jumped 13% as revenue growth was driven by
higher sales volume in its paint stores and benefits from
acquisitions.
Write to Tess Stynes at tess.stynes@wsj.com
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