PPG Industry Releases 2015 Fourth Quarter and Full Year Financial Report

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PPG Industry Releases 2015 Fourth Quarter and Full Year Financial Report

"Looking forward to 2016, we expect that the global economy will continue to maintain its growth momentum, but the growth rate of each region may be uneven.
The pace of recovery in the Asia-Pacific region is still not the same, but the annual performance is expected to remain stable.
The main driving force behind the economic recovery is Due to the increase in consumer spending, this will drive the improvement of product sales in the Asia-Pacific region, which is very beneficial to PPG's business growth.
"

"Driven by the recovery in demand from multiple industries, the North American economy may continue to maintain a moderate recovery," McGarry said: "In addition, the European economy is expected to continue to rebound on the basis of 2015.
Given that about 30% of PPG's sales come from the European market , We are also continuing to reduce the cost of the European business, which is undoubtedly a big plus for PPG.
"

"From the company's own point of view, in 2016, we will remain committed to promoting organic business growth and accelerating the commercialization of various industry-leading innovative coating technologies.
At the same time, we will adhere to active cost control measures to improve operational efficiency.
At present, The company's asset-liability structure is very stable, and we will continue to implement a series of cash deployment measures to boost profitability and create greater value for shareholders.
" McGarry concluded.

PPG also recently reiterated that it will spend USD 2-25 billion in business acquisitions and stock repurchases from 2015 to 2016.
In 2015, the company’s continuing operating activities generated a total of US$1.
8 billion in cash flow.
As of the end of the year, the total cash and short-term investments totaled approximately US$1.
5 billion.
The cash deployment for the year is mainly as follows: capital expenditures of US$475 million, dividends of US$385 million, acquisitions The transaction exceeded US$400 million (purchase price), and the stock repurchase totaled US$750 million (approximately 7 million shares were repurchased).

Performance of each business unit in the fourth quarter of 2015

In the fourth quarter of 2015, sales of the high-performance coatings business were US$2.
06 billion, a decrease of US$31 million from the same period last year and a year-on-year decrease of 2%.
Among them, unfavorable exchange rate factors dragged down sales by about 8%.
Excluding its impact, sales in local currencies increased by 6% year-on-year.
The acquired business contributed approximately US$120 million in sales, including one-month revenue contribution from the Comex business acquired in November 2014.
There are still opportunities for organic growth in the automotive refinish field, which also reflects increased end market demand, especially in Asia.
Excluding the impact of exchange rate factors and acquired business, the sales of architectural coatings in the Americas and Asia-Pacific regions remained flat year-on-year.
The endogenous growth in Mexico and the United States was relatively strong, which offset the weak demand in Canada, Brazil and China.
Europe, the Middle East, and Africa (EMEA) achieved low-single-digit growth in sales of architectural coatings compared with the same period last year, as demand in the region continues to recover, but the performance of countries still differs greatly.
The total sales volume of industrial protective and marine coatings business achieved mid-single-digit growth year-on-year, mainly due to the synergy effect brought by the Comex business to the sales of industrial protective coatings.
The sales volume of aerospace coatings declined due to the high base in the fourth quarter of 2014 and the unfavorable trend of customer orders.
The high-performance coatings business achieved a net profit of US$250 million in the fourth quarter, an increase of US$11 million from the same period last year and a year-on-year increase of 5%, mainly due to the contribution of Comex and the cost reduction due to the synergy brought by the acquisition of the business.
However, unfavorable exchange rate factors have dragged down daily net profit by approximately US$15 million.

The industrial coatings business achieved sales of US$1.
37 billion in the fourth quarter, an increase of US$27 million from the same period last year and a year-on-year increase of 2%.
Among them, the increase in sales contributed about 4% of the sales growth, and the acquisition of the business contributed 6%, but the unfavorable exchange rate factors dragged down the sales this quarter to 7%.
In each business, automotive original equipment manufacturer (OEM) coating sales growth achieved mid-single-digit growth, exceeding the overall industry growth level of about 4%.
The industrial coatings and specialty coatings and materials business achieved a year-on-year increase in sales after two consecutive quarters of sales declines.
Sales in all regions have improved, especially the European and Asian markets.
The sales volume of packaging coatings achieved a mid-single-digit growth year-on-year, mainly due to the gradual adoption of PPG's new coating technology by customers.
The overall net profit of the industrial coatings business in the fourth quarter was US$240 million, an increase of US$17 million compared to the fourth quarter of 2014, a year-on-year increase of 8%.
The main driving force was the increase in sales and the decrease in production costs.
The positive effects of business restructuring have gradually begun to appear.
.
The exchange rate factor dragged down the net profit of approximately US$10 million this quarter.

In the fourth quarter of 2015, the glass business achieved sales of US$265 million, a decrease of US$7 million from the same period last year and a year-on-year decline of 3%.
Although both sales volume and selling price increased, due to unfavorable exchange rate factors and the sale of a flat glass factory in 2014, the sales decreased, and the overall business sales were not as good as the same period of the previous year.
The demand for value-added flat glass products in the civilian and non-civilian terminal markets remained stable.
In addition, due to the boost in demand in the US market, the impact of the downturn in the European market has been weakened and glass fiber sales have increased.
Overall, the net profit of the glass business in the fourth quarter was US$38 million, an increase of US$5 million compared to the same period last year.
The main driving force was the growth of endogenous sales.
However, due to the fact that the Fresno flat glass plant in California plans to be the first in 2016 The quarterly overhaul has led to an increase in production costs, which has affected the overall profit level of the business to a certain extent.

2015 annual results

In 2015, net sales from continuing operations were US$15.
3 billion, the same as the same period last year.
The acquired business contributed approximately 6% to sales growth, and sales growth pushed sales to 1%, offsetting the negative impact of approximately 7% caused by unfavorable exchange rate factors.
For the whole year of 2015, continuing operations achieved a net profit of US$1.
41 billion, equivalent to a diluted earnings per share of US$5.
14, which was higher than 2014's US$1.
13 billion and US$4.
05.
The adjusted net profit from continuing operations for the whole year was US$1.
56 billion, equivalent to US$5.
69 of diluted earnings per share, a year-on-year increase of 17% from 2014's US$1.
36 billion and US$4.
88.
In 2015, unfavorable exchange rate factors dragged down sales of approximately US$1.
1 billion and affected pre-tax profits of approximately US$120 million.
The effective tax rate for adjusted profits for the year was 24.
5%, and the comparable tax rate for 2014 was 23.
9%.

PPG: Innovation, as you see

The vision of PPG Industries is to protect and beautify their products and the environment by providing customers with reliable, high-quality, innovative and sustainable solutions, and to become the world's leading coatings company.
Relying on its leadership in innovation, sustainable development and color, PPG helps customers from construction, consumer goods, industry, transportation and other fields and their after-sales markets in various forms to provide added value to enhance the appearance of their products.
PPG Industries was founded in 1883 and is headquartered in Pittsburgh, USA.
It has production bases and affiliates in nearly 70 countries around the world.
According to financial reports, the company's global net sales in 2015 were 15.
3 billion U.
S.
dollars.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )