Q1 Sales up 9% at PPG
Paints and coatings manufacturer PPG reported first quarter 2018 net sales of about $3.8 billion, up nearly 9% from first quarter 2017 net sales of $3.8 billion.
The Pittsburgh, Pa.,-based company also reported a first quarter 2018 net income from continuing operations of $347 million, nearly a 6% increase from a net income from continuing operations of $328 million for the same period a year ago.
PPG said it continued to experience more raw material inflation and higher logistics costs across all of its businesses during the quarter.
“We are continuing to prioritize working with our customers to further offset the impact of inflation. These efforts, along with our continued focus on operational excellence are expected to aid our margin recovery efforts,” said Michael McGarry, PPG chairman and CEO.
The company’s Performance Coatings segment first quarter net sales were approximately $2.2 billion, up $148 million, or 7%, from a year ago. Industrial Coatings rose 10% to $1.6 billion.
PPG also disclosed potential violations of its accounting policies and procedures regarding the failure to accrue certain specified expenses in the first quarter. Based on preliminary review, the company identified approximately $1.4 million of expense that should have been accrued in the first quarter, and the earnings reported reflected the accrual of the $1.4 million expense. An internal audit also suggests that there may have been other unspecified expenses, potentially up to $5 million in the aggregate, that were improperly not accrued in the first quarter.
The Pittsburgh, Pa.,-based company also reported a first quarter 2018 net income from continuing operations of $347 million, nearly a 6% increase from a net income from continuing operations of $328 million for the same period a year ago.
PPG said it continued to experience more raw material inflation and higher logistics costs across all of its businesses during the quarter.
“We are continuing to prioritize working with our customers to further offset the impact of inflation. These efforts, along with our continued focus on operational excellence are expected to aid our margin recovery efforts,” said Michael McGarry, PPG chairman and CEO.
The company’s Performance Coatings segment first quarter net sales were approximately $2.2 billion, up $148 million, or 7%, from a year ago. Industrial Coatings rose 10% to $1.6 billion.
PPG also disclosed potential violations of its accounting policies and procedures regarding the failure to accrue certain specified expenses in the first quarter. Based on preliminary review, the company identified approximately $1.4 million of expense that should have been accrued in the first quarter, and the earnings reported reflected the accrual of the $1.4 million expense. An internal audit also suggests that there may have been other unspecified expenses, potentially up to $5 million in the aggregate, that were improperly not accrued in the first quarter.