PPG Industries today reported its fourth quarter 2015 net sales from continuing operations were $3.7 billion, which the company says is consistent with the prior year. However, glass segment net sales were $265 million for the quarter, down $7 million, or 3 percent, year-over-year.
According to a release from PPG, “higher sales volumes and improved selling prices were offset by unfavorable foreign currency translation and reduced sales stemming from the 2014 sale of a flat glass production facility. Solid flat glass demand continued for value-added products serving residential and non-residential end-use markets.”
Overall, PPG’s net sales in local currencies grew 7 percent year-over-year, and the company reported fourth quarter 2015 net income from continuing operations was $314 million. Fourth quarter 2015 adjusted net income from continuing operations was $332 million.
“We once again delivered strong financial performance in the fourth quarter and for the full year of 2015,” says Michael H. McGarry, PPG president and chief executive officer. “Results improved despite the persistent, unfavorable impact of weaker foreign currencies, which were more than offset by benefits from our earnings-accretive cash deployment, improving sales volumes and our unwavering focus on costs. … While overall global economic demand remained mixed in the quarter, our sales volumes grew about 2 percent, which is our highest year-over-year volume growth in any quarter of 2015.”
The company’s industrial coatings segment recorded net sales of $1.37 billion, increasing $27 million, or 2 percent, over the prior year. Performance coatings segment fourth quarter net sales were $2.06 billion, down $31 million, or about 2 percent, versus the prior-year period.
“As we enter 2016, we anticipate global economic growth will continue, but at a varied pace and mixed by major economy,” says McGarry. “In the Asia Pacific region, growth will likely remain uneven through the year but solid on a full-year basis. The primary driver for this growth is increased consumer spending, which is beneficial to PPG as this affects the majority of our products sold in the region.”
He adds, “Economic expansion in North America is likely to continue at a modest pace, comparable to this past year, supported by multiple sectors. Also, we expect the European economies to build on the broadening growth rates achieved in 2015, which will be favorable to PPG given about 30 percent of our sales are in that region and we have substantially reduced our cost structure there.”