PPG realizes record 2021 sales
PPG reported record fourth quarter net sales of about $4.2 billion, about 12% higher than prior year’s same quarter of approximately $3.8 billion; and record full year 2021 sales of about $16.8 billion, up about 21% versus prior year.
The Pittsburgh-based company reported Q4 sales were aided by “acquisition-related sales and above-market sales volume performance in several of our end-use markets, including automotive refinish, marine, and PPG-Comex architectural coatings,” said Michael H. McGarry, PPG chairman and CEO.
The fourth quarter results included elevated architectural coatings, do-it-yourself demand and higher global industrial activity related to initial recovery from the pandemic, he said.
Net income, down 2% in Q4, was up 34% increase at $1.4 billion for full year 2021 over $1.1 billion in the previous year, the company reported.
From an earnings perspective, selling prices improved sequentially versus the third quarter and increased 8% year-over-year, partially offsetting raw material and logistics cost inflation, said McGarry.
“However, we experienced significantly higher operating costs due to unpredictable manufacturing interruptions at both our facilities and our customers’ operations stemming from a rapid and substantial impact from labor availability due to COVID-19,” the CEO said.
Also impacting sales and earnings were ongoing raw material and transportation availability challenges resulting in continued difficulty fulfilling strong order books in several end-use markets, as the firm ended the quarter with order backlog of over $150 million, PPG said.
The Bottom Line: PPG sales moved ahead 21% company-wide for full-year 2021 to nearly $17 billion.
What the CEO said: “We achieved higher sales than we originally forecasted as demand for our products remained strong and we continued to rapidly implement additional selling price increases,” said Michael H. McGarry, PPG chairman and CEO.
Company info: Click HERE to read the Q4 and full-year 2021 financial report from PPG.