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PPG Industries says third-quarter results to be better than expected

October 12/2020

MOSCOW (MRC) -- PPG Industries says it expects third-quarter net sales to be down 5% year-on-year (YOY), compared with prior guidance calling for a decline of 611%, reported Chemweek.

Adjusted earnings are forecast to total USD1.901.94/share. PPG has not previously provided third-quarter earnings guidance. In the year-ago quarter, adjusted earnings totaled USD1.67/share, and net sales totaled about USD3.8 billion.

The better than expected quarterly financial results were driven by improving demand in several end-use markets resulting in higher sales volumes, coupled with continued, aggressive cost management actions, PPG says. This includes strong YOY growth in sales volumes in the companys architectural coatings business.

We expect to achieve high-teen percentage operating margins in both reporting segments for the quarter, reflecting improving sales volumes and continued execution of our cost management initiatives, says PPG chairman and CEO Michael McGarry. We are continuing to deliver strong performance in our aggregated global architectural coatings and packaging coatings businesses, which is now being coupled with strengthening demand for our automotive original equipment manufacturer and general industrial coatings. These businesses collectively represent about 70% of our business portfolio. In the remainder of our businesses, demand trends continue to be mixed due to impacts from the pandemic.

PPGs two reporting segments are performance coatings and industrial coatings. The company will report full third-quarter 2020 results on 19 October.

As MRC wrote previously, in February 2020, PPG said it had completed its acquisition of Industria Chimica Reggiana (ICR, Reggio Emilia, Italy), a maker of automotive refinish products. Financial terms of the deal, including purchase price, were not disclosed. The deal was announced on 8 January. ICR was founded in 1961 and employs about 180 people. ICR manufactures automotive refinish products, including putties, primers, basecoats and clear coats. It also makes a range of coatings, enamels and primers for light commercial vehicles and other light industrial coatings applications. ICR employs about 180 people and sells its products in more than 70 countries in Europe, Africa, the Middle East, the US and Latin America.

We remind that Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts. According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes. August production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.
Author:Margaret Volkova
Tags:Europe, PP, coatings, film extrusion, car components, adhesives, construction, paints and coatings, film, PPG, Italy, Russia, USA.
Category:General News
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