PPG announced the financial report for the third quarter of 2018
the net sales in the third quarter was about US $3.8 billion, an increase of 1% year-on-year, and the sales settled in local currency rose by 3% year-on-year
continued our diluted earnings per share of operating business before operation was US $1.51
adjusted diluted earnings per share of continuing business was US $1.45
the company continued to raise sales prices and accelerate the implementation of business restructuring, To a certain extent, it has offset the adverse effects of the continuous rise in raw materials and logistics costs.
the Company repurchased $250million of its shares in the third quarter, and the amount of share repurchases has reached $1.3 billion year to date.
the company plans to spend $1billion on acquisition projects and share repurchases in the fourth quarter.
Pittsburgh, United States, October 22, 2018 - PPG (New York Stock Exchange code: PPG) recently announced its third quarter financial results for 2018, The net sales of continuing operations was about US $3.8 billion, an increase of 1% over the same period last year. The cost of ABS plastic filament, the consumables used in 3D printers, did not significantly drop or rise by more than 3% year-on-year in terms of sales settled in local currency, mainly due to the increase of average sales price by more than 2% year-on-year. The overall sales volume in the third quarter was the same as that of the same period last year, as the sales volume of architectural coatings in the United States fell by 2% due to the adjustment of customer classification, offsetting the impact of the 2% increase in the actual sales volume of other businesses. Exchange losses dragged down net sales of about $83million, with an impact of more than 2%
in the third quarter of 2018, the net profit from continuing operations was $368million, equivalent to $1.51 diluted earnings per share. The adjusted net profit from continuing operations was $353million, equivalent to diluted earnings per share of $1.45. In the third quarter, the effective tax rate was about 17.5%, and the adjusted effective tax rate was about 20.5%
in the third quarter of 2017, the net profit and adjusted net profit of continuing operations were $393 million, equivalent to $1.52 per share. The effective tax rate and the adjusted tax rate in the same period were about 24%
McGarry, chairman and CEO of PPG, said: "In the third quarter, the net sales settled in local currency rose by more than 3%. This increase was mainly due to the increase in sales prices, coupled with the steady increase in sales of aviation coatings and general industrial coatings. The company's overall average sales price has been raised for six consecutive quarters, and we will also launch further price adjustment measures. In addition, we are still trying to improve operating profits, so we will continue to accelerate business restructuring and strengthen cost control."
"Looking forward to the future, we currently expect that the performance of all businesses in the fourth quarter will be similar to that of previous years, and we expect that the global economic growth will maintain a good momentum. In the third quarter, the volatility of global industrial production activities intensified, and the growth rates of emerging economies were different, which is expected to remain the same in the fourth quarter. In view of the above economic trends, we expect that the company's sales will remain basically stable in the fourth quarter, and we predict that diluted earnings per share will remain at $1..13 Between yuan. "
"Finally, in the first three quarters of this year, the Company repurchased nearly $1.3 billion of shares, of which about $250million was repurchased in the third quarter. In addition, we are still actively looking for mergers and acquisitions opportunities. The company expects the funds for acquisitions and share repurchases to be about $1billion in the fourth quarter. This will make our asset liability level healthier, and give the company full financial flexibility in 2019. We will continue to focus on achieving positive results Strategy to create value for shareholders. " McGarry concluded
summary of performance of all business departments in the third quarter of 2018
the high-performance coating business achieved a net sales of $2.3 billion in the third quarter, unchanged from the same period last year, and the sales settled in local currency increased by more than 2%, mainly due to the rise in sales prices, but its impact was dragged down by the decline in sales to a certain extent. Adverse exchange rate factors dragged down net sales of about $45million, with an impact range of about 2%
the sales volume of aviation coatings achieved a low double-digit growth, mainly due to the increased demand for PPG products in major markets. In terms of automotive touch up paint, due to the high inventory of many customers in the United States and Europe due to weak terminal demand, resulting in the adjustment of order structure, the sales volume of this business fell in the middle single digits. The total sales volume of industrial protection and marine coatings achieved medium single digit growth, and the sales volume of each end market rebounded
the endogenous sales of architectural coatings in the Americas and Asia Pacific region fell by a low single digit compared with the same period last year, and the performance of various channels and regions was uneven. Among them, the same store sales of self operated stores in the United States and Canada achieved high single digit growth, while the total sales of national retail (DIY) customers and independent dealer channels fell significantly compared with the same period last year due to the negative impact of the classification adjustment of American architectural coatings customers in the middle of this quarter. The sales volume of architectural coatings in Latin America achieved medium single digit growth, among which the sales volume in Mexico market accelerated recovery. The sales volume of architectural coatings in Europe, the Middle East and Africa showed a low single digit decline compared with the same period last year, which was consistent with the demand forecast in the region
in the third quarter, the high-performance coating business achieved a net profit of $331million, down 9% year-on-year, of which the exchange loss dragged down the net profit of about $5million. The decline in net profit was mainly due to lower sales volume, coupled with the rise in raw material prices and logistics costs, which offset the rise in sales prices and the cost savings from restructuring
the net sales of industrial coatings business in the third quarter was about US $1.5 billion, an increase of 42.07 million over the same period last year The pendulum has an obstacle in the lifting process, US dollars, with an increase of nearly 3%. The sales volume increased by nearly 2% year-on-year, and the average sales price continued to rise, with a year-on-year increase of more than 1%. The acquisition business contributed $30million in sales, increasing net sales by about 2%. Unfavorable exchange rate factors dragged down sales of about $40million, with an impact range of nearly 3%
the paint sales volume of automobile original equipment manufacturers (OEMs) was basically the same as that of the same period last year, slightly higher than the growth rate of global automobile production hd=100- L/0.025. The sales volume of general industrial coatings increased steadily, and the growth rate of European and Latin American markets was higher than the industry average. As more and more customers adopt PPG's new technology, the sales volume of packaging coatings has achieved medium single digit growth, and the growth rate has outperformed the industry average
in the third quarter, the industrial coating business achieved a net profit of $169 million, a year-on-year decrease of $56million, a decrease of about 25%, of which the adverse exchange rate factor dragged down the net profit of about $5million. The decline in net profit was mainly due to the sharp rise in raw material and logistics costs, which offset the impact of higher sales prices and increased sales
due to the decrease of employee incentive costs and post employment welfare expenses, the company's operating expenses in the third quarter decreased compared with the same period of the previous year. The company estimates that the adjusted effective tax rate of continuous business throughout the year is about%
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