PPG Industries reports durge in 2Q profit as reenue and volume rise

PPG Industries says 2Q profit almost doubles

PITTSBURGH — PPG Industries Inc., which makes paint and industrial coatings, reported Thursday its profit almost doubled in the second quarter as volume rose 10 percent and the company benefited from stronger demand as industrial activity picked up around the world.

The results easily beat analyst expectations and the company said although its business hasn’t yet returned to pre-recession levels, it is steadily improving.

The company earned $272 million, or $1.63 per share, in the three-month period ending June 30, up from $146 million, or 89 cents a share, a year ago.

The quarter’s results include a charge of a penny per share after taxes to reflect the value of the company’s obligation under a proposed asbestos settlement, which is pending in court.

Revenue rose 11 percent to $3.46 billion, as volume rose 10 percent.

Analysts expected the company to earn $1.43 a share on revenue of $3.52 billion.

PPG Chairman and CEO Charles E. Bunch said industry demand is improving and he highlighted growth in Asia, the Pacific and Latin America as offsetting weak construction markets in Europe and North America.

He said demand levels are still more than 10 percent lower than 2008, but the results show “that our global portfolio and our efforts to restructure our businesses to reduce structural costs have positioned PPG to capitalize on what we anticipate to be a continued, gradual, global economic recovery.”

Industrial coatings performance was strong, with sales volume rising more than 25 percent across all regions. Revenue in the segment rose 27 percent to $198 million.

The company, based in Pittsburgh, also announced an increase to its dividend to 55 cents a share, from 54 cents.

Shares fell 40 cents to $64.12 in midday trading Thursday.