Profits jump at PPG in Q3

Paint and coatings manufacturer PPG reported that third quarter sales fell 4% to nearly $3.7 billion from sales of $3.8 billion in the third quarter 2019.

The Pittsburgh, Pa.-based company also reported a net income from continuing operations of $442 million, more than a 20% jump from a net income of $376 million for the same period last year.

Performance coatings sales decreased about 2.7% to $2.25 billion during the quarter while industrial coastings sales were down more than 5% to $1.43 billion.

Selling prices increased by 1.3% during the period but sales volumes were down about 5% versus the prior year. 

PPG attributed the decline to the ongoing negative economic impacts of the COVID-19 pandemic. Acquisition-related sales added less than 1% to sales growth.

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The Bottom Line: As sales slip, PPG’s profits jump 20% to $442 million for the third quarter.

What the CEO said: “Looking ahead, we are likely to experience normal seasonal trends in the fourth quarter, especially in our European and North American architectural coatings businesses,” said PPG Chairman and CEO Michael McGarry.  “Even with the continued uncertainty from the pandemic we expect overall economic activity to continue to recover, but in an uneven manner.

Company info: The full third quarter 2020 financial report from PPG is available here.