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, also appointed Executive Vice President
Michael H. McGarry as the company's chief operating officer,
starting Aug. 1.
During his 33 years with PPG, McGarry has served in a variety of
management roles with increasing responsibility and has lead
several strategic initiatives in PPG's efforts to realign its
businesses, including a series of major acquisitions.
Most recently, PPG last month 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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