PPG 3Q 2012 Net Sales Flat With 2011
|October 19, 2012 12:20 AM
PPG Industries (NYSE:PPG) reported third quarter 2012 net sales of $3.8 billion, flat with year ago levels. Net income for the quarter was $339 million, including nonrecurring charges. Adjusted net income for the quarter, excluding the nonrecurring charges, was $348 million. Third quarter 2011 net sales were $3.8 billion, and net income was $311 million.
According to Charles E. Bunch, PPG chairman and CEO, sales were flat versus third quarter 2011 as the impact of negative currency translation offset local currency sales growth of 4 percent.
Bunch noted, “Sales declined in our Optical and Specialty Materials segment in all regions due to customer inventory management actions stemming from lower growth rates in the optical channel and in anticipation of the upcoming introduction of our next-generation Transitions lenses.”
PPG reported that Optical and Specialty Materials third quarter segment sales were $282 million, down $29 million, or 9 percent, including a 6 percent volume decline and a negative impact from foreign currency translation. Segment volumes declined due to slower optical consumer growth and associated customer inventory destocking.
PPG said it initiated further customer inventory management actions were initiated to avoid product obsolescence ahead of the early 2013-scheduled introduction of Generation VII Transitions lenses. Segment earnings declined by $17 million year-over-year to $76 million due to the lower volumes, which were partly offset by lower selling expenses, the company said.
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