PPG reported first quarter 2016 net sales of $3.7 billion, consistent with the prior year. Glass segment net sales were $261 million for the first quarter, down $6 million, or 2 percent, versus the prior-year period.
According to the company, the decrease in sales was due to “lower sales volumes, unfavorable foreign currency translation, and lower sales stemming from the sale of a flat glass manufacturing facility, partially offset by improved selling prices. Flat glass industry demand remained solid, but PPG sales volumes declined primarily due to a scheduled facility outage.”
Overall, the company’s first quarter 2016 reported net income was $347 million. Adjusted net income during that period was $351 million, which excludes after-tax charges totaling $4 million for transaction-related costs and a non-recurring charge. The adjusted effective tax rate for the quarter was 25 percent.
First quarter 2015 reported net income was $321 million. Adjusted net income from continuing operations was $327 million, including an after-tax charge for transaction-related costs of $6 million. The first quarter 2015 adjusted effective tax rate was 24.4 percent.
PPG’s performance coatings segment first quarter net sales were $2.04 billion, down $16 million, or less than one percent, versus the prior-year period.
“Looking ahead, we expect economic growth to remain measured globally,” says Michael H. McGarry, PPG president and chief executive officer. “We anticipate further expansion of the European economic recovery, resulting in higher demand that will enable us to continue to capitalize on our ongoing actions to reduce our cost base in that region. Regional demand in the U.S. and Canada is expected to improve incrementally year-over-year across several end-use markets. Growth rates in emerging regions are expected to remain mixed, with higher consumer spending supporting increased Asian demand and PPG-specific above-market performance in Mexico, tempered by sustained economic weakness in South America.”