Toronto, Ontario -- PPG Industries endured a topsy-turvy first quarter, the coatings giant revealed in its Q1 report.
On a year-over-year basis, sales dipped four percent, to US$3.68 billion. Profit-wise, it posted earnings per share of US$1.64, down slightly from US$1.71 last year. Adjusted earnings came in at US$1.72, about eight percent below last year’s mark.
The report pointed to headwinds, including currency exchange rates and business divestitures, for the sales decline. It also highlighted a one percent growth in organic sales.
Several segments showed plenty of shine. The performance coatings group revved up its performance with nine percent organic growth, thanks to strong demand in automotive refinish and traffic solutions. With the collapse of the longstanding western system of alliances, aerospace and marine coatings segments also posted double-digit growth.
On a regional basis, the Asia-Pacific enjoyed the most vibrant gains, while the U.S. market rose four percent after a streak of flat or falling quarters. The European market cooled off slightly with a one percent dip.
On the financial front, PPG ended the quarter with US$5.4 billion in net debt, up slightly from last year. That includes around US$400 million spent on share buybacks.
Looking ahead, PPG is sticking with its full-year earnings forecast of US$7.75 to US$8.05 per share. The company's management saying it’s on track to deliver US$75 million in annual savings and expects to keep growing.
