MOSCOW (MRC) -- PPG Industries (PPG) reported that its net income from continuing operations attributable to the company for the first quarter 2015 increased to USD321 million or USD2.33 per share, from USD277 million or USD1.97 per share in the first quarter 2014, as per company's press release.
Quarterly adjusted net income from continuing operations was USD327 million or USD2.37 per share, up from USD279 million or USD1.98 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of USD2.34 per share for the quarter. Analysts' estimates typically exclude special items.
Both quarters included portfolio transformation transaction-related costs, which were $6 million, or 4 cents per share, in 2015, and USD2 million, or 1 cent per share, in 2014. During the quarter, the adjusted effective tax rate from continuing operations increased to 24.4 percent versus 24 percent in the first quarter 2014, resulting principally from the inclusion of Comex acquisition earnings.
But, net income attributable to the company fell to USD322 million or USD2.34 per share from USD1.262 billion or USD8.97 per share in the previous year.
Quarterly net sales from continuing operations were USD3.7 billion, up 1 percent versus the prior year. Net sales in local currencies grew 8 percent year-over-year, including a 7 percent contribution from acquisition-related sales and a 1 percent improvement in sales volume. Unfavorable currency translation reduced year-over-year net sales by 7 percent, or about USD260 million. Wall Street analysts had a consensus revenue estimate of USD3.79 billion for the quarter.
PPG announced a business-restructuring program that includes actions necessary to achieve cost synergies related to recent acquisitions. In addition, the program aims to further right-size employee headcount and production capacity in certain businesses and regions based on current product demand and in various global administrative functions. A pretax restructuring charge of USD135 million to USD140 million will be recorded in PPG's second quarter 2015 financial results, of which about 85 percent represents cash charges.
PPG said it expects these restructuring actions will result in full-year pretax savings of USD100 million to USD105 million by 2017, including 2015 partial-year savings of USD15 million to USD20 million.
As MRC informed before, U.S. chemicals maker PPG Industries Inc had formally finalized its acquisition of Mexican paints maker Consorcio Comex for USD2.3 billion. The Pittsburgh-based PPG Industries said it had received a favorable ruling from Mexico's competition watchdog to complete the purchase, which came after the Mexican company's deal to sell to U.S. rival Sherwin-Williams Co fell through.
PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum.
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