Glass sales up for PPG
PPG Industries reported, Oct. 20, that net sales for the third quarter of 2011 were $3.8 billion, an increase of 11 percent versus the prior year's third quarter. Net income for the quarter increased to $311 million compared to $262 million in third quarter 2010.
Glass segment sales were $273 million, up $13 million, or 5 percent, compared with the prior year as a result of improved pricing and favorable foreign currency translation, which were offset slightly by lower volumes due to planned fiber glass production outages, according to a release. Segment earnings were $23 million, a decrease of $9 million from the prior-year quarter primarily due to the lower volumes and higher maintenance costs.
According to Charles E. Bunch, PPG chairman and CEO, pricing on a corporate basis increased for the sixth consecutive quarter, as all 13 PPG businesses implemented higher pricing this quarter to further counter higher input costs. "PPG's overall volumes were flat year-over-year. Demand in most markets in North America was up modestly and fairly consistent with the prior quarter's growth rate. Continued volume gains in emerging regions such as Asia/Pacific and Latin America offset lower demand in Europe, which was driven principally by the company's consumer-oriented businesses," he said, in a release.
Higher planned maintenance resulted in lower glass segment results, he also said.
"In general, we anticipate normal seasonal fourth quarter patterns to occur," he continued. "Raw material inflation rates are flattening, and we are in the process of implementing additional price increases in several businesses to counter the inflation we have absorbed. Our cash position remains strong, and we intend to continue to focus cash deployment on earnings growth initiatives. Finally, we are keeping a watchful eye on the global economy, and we are prepared to adapt to changing conditions," he concluded.