MOSCOW (MRC) -- PPG Industries reported fourth quarter 2014 net sales from continuing operations of USD3.71 billion, up USD207 million, or 6 percent, versus the prior-year figure of USD3.5 billion, said the company in its press release.
Net sales in local currencies grew 10 percent year-over-year, with acquisition-related sales contributing about 6 percent and volume growth adding 4 percent. Unfavorable currency translation impacted net sales by 4 percent, or about USD130 million.
Fourth quarter 2014 reported net income from continuing operations was USD86 million, or 62 cents per diluted share. Fourth quarter 2014 adjusted net income from continuing operations was USD293 million, or USD2.11 per diluted share. The adjusted figures exclude debt refinancing charges of USD200 million after-tax, or USD1.44 per diluted share, USD36 million after-tax, or 26 cents per diluted share, for transaction-related costs primarily from the Comex acquisition, and the benefit of lower taxes of USD29 million, or 21 cents per diluted share, relating to a favorable ruling on a prior-year foreign tax matter. The ongoing tax rate on the adjusted earnings excluding these adjustments was 23.5 percent for the fourth quarter and 23.9 percent for the full year, consistent with the company’s prior guidance.
Fourth quarter 2013 reported net income and earnings per diluted share were USD237 million and USD1.66, respectively. Adjusted fourth quarter 2013 net income from continuing operations was USD240 million with earnings from continuing operations of USD1.68 per diluted share, excluding transaction-related costs of USD3 million, or 2 cents per diluted share.
PPG reported cash and short-term investments totaling USD1.2 billion at year-end. The company repurchased USD300 million, or about 1.4 million shares, of PPG stock during the quarter. PPG also reported approximate full-year 2014 cash uses as follows: USD585 million for capital spending, USD360 million for dividends paid, USD2.5 billion on acquisitions (including repayment of debt acquired), and USD750 million on share repurchases totaling approximately 3.8 million shares.
PPG’s 2014 full-year net sales from continuing operations were USD15.4 billion, an increase of 8 percent versus USD14.3 billion the prior year. Acquisition-related sales contributed 4 percent year-over-year, supplemented by sales volumes and pricing, which added 4 percent and 1 percent, respectively, and partly offset by unfavorable currency translation of 1 percent. The company’s 2014 full-year reported net income from continuing operations was USD1.13 billion, or USD8.10 per diluted share, versus USD950 million, or USD6.55 per diluted share, in 2013. Full-year 2014 adjusted net income from continuing operations was USD1.36 billion, or USD9.75 per diluted share, versus USD1.11 billion, or USD7.67 per diluted share, in 2013.
As MRC wrote before, U.S. chemicals maker PPG Industries Inc had formally finalized its acquisition of Mexican paints maker Consorcio Comex for USD2.3 billion. The Pittsburgh-based PPG Industries said it had received a favorable ruling from Mexico's competition watchdog to complete the purchase, which came after the Mexican company's deal to sell to U.S. rival Sherwin-Williams Co fell through.
PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum.MRC