PPG Paint Product prices continue to rise
PPG Industrial Company in Thursday released the 2017 fourth quarter results better than the market expectations, the company's stock prices jumped higher on the day, once a rise of more than 6.6%, a record of nearly 2-year high, close a slight drop, close to 118.41 U.S. dollars/shares, rising 3.8% a day, to create the most recent one-
According to the company, the rise in performance mainly stems from its sales in major regions of the world to maintain a "stable and balanced growth." The average sales price of PPG's paint products has risen for the third consecutive quarter, thus maintaining a rise in profit margins – although raw material costs were higher than expected in the quarter. The company believes that the rise in raw material prices is a result of persistent supply problems, including the decline in production due to environmental law enforcement in China.
In 2017, PPG's net sales from ongoing operations were about $14.8 billion trillion, up more than 3% from the previous year, with a favourable currency rate of almost 1% per cent, or about 55 million dollars; The company continued operating net profit of 1.408 billion U.S. dollars a year, compared with 2016 performance growth of 157.4%, but the adjusted annual net profit of 1.513 billion U.S. dollars, year-on-year growth of only about 0.5%, mainly because of the 2016 due to business restructuring, A one-time compensation for asbestos has produced a non-recurrent return of nearly 300 million dollars, while the settlement of the old year's pensions amounted to more than $600 million.
2017 years of the Four seasons, PPG net sales of about 3.7 billion U.S. dollars, compared with the same period last year, the growth of nearly 8%, sales year-on-year growth of 3%, the third consecutive quarter price growth, which led to sales growth of nearly 1%; Sales related to acquisitions (excluding stripping) increased by less than 1%.
In four quarters, PPG high-performance Coatings business Unit net sales of 2.1 billion U.S. dollars, an increase of 144 million U.S. dollars, an increase of more than 7%. The rise in sales has benefited from higher sales in most businesses and regions, with sales growing by more than 2% per cent and a favourable currency rate driving net sales growth of about $67 million (ie, 3% per cent).
Car repair paint in Europe and the United States market performance strong, driven by strong demand in emerging markets, sales have achieved median growth. As demand in the U.S. and Asian markets grew, aviation paint sales grew faster and sales grew to a median. In the Americas and Asia-Pacific region, sales of architectural coatings were achieved in low single-digit growth, depending on channel and region. In the United States and Canada, the company has a steady growth in sales of building coatings retail outlets, while the total sales of DIY retail and independent dealer networks have been flat over the same period last year. Construction paint sales in Latin America were flat last year, as the growing demand for end-markets was offset by the adverse effects of the Mexican earthquake. In Europe, the Middle East and Africa, construction paint sales were flat last year, compared with the third quarter, the results are still different. Overall, the protection of paint and ship paint sales were flat year-on-year, protection of paint sales growth offset the decline in the impact of ship paint sales.
PPG Industrial Coatings Business Unit net sales of four quarters were about 1.6 billion U.S. dollars, up 121 million US dollars over a year earlier, or more than 8%. Sales grew by more than 4% per cent, with a favourable currency rate driving growth of nearly 46 million U.S. dollars, or about 3%, while sales fell slightly from a year earlier, but in comparison with the three quarter, sales related to acquisitions rose by 27 million dollars, up about 2% per cent year-on-year.
Auto OEM paint sales growth low single-digit, in line with the global automotive industry development. Company's industrial coatings and special coatings and materials sales have achieved a median growth, and for the eighth consecutive quarter than the global industrial production average growth rate, of which the company in many terminal market has achieved better growth. Packaging coating sales achieved a higher single-digit growth, which because of the customer exchange with PPG new technology products and make in most areas of sales growth than the industry average level.