Segment income was $29 million, an improvement of $28 million due to lower manufacturing costs, higher volumes and the impact of higher pricing.
In its report, the company noted record sales for the fourth quarter 2010 of $3.4 billion, an increase of 8 percent versus the prior year’s fourth quarter. Reported net income for the quarter increased to $205 million, or $1.24 per share. Fourth quarter 2009 sales were $3.1 billion, and reported net income was $142 million, or 85 cents per share.
PPG’s fourth quarter 2010 adjusted net income was $207 million, or $1.25 per share. Fourth quarter 2009 adjusted net income was $144 million, or 86 cents per share. Both years include an aftertax charge of $2 million, or 1 cent per share, reflecting the net increase in the current value of the company’s obligation under its proposed asbestos settlement, which is pending court proceedings.
PPG’s annual sales for 2010 were $13.4 billion, an increase of 10 percent versus 2009 sales of $12.2 billion, and its full-year 2010 adjusted net income was $862 million, or $5.18 per share, compared with full-year 2009 adjusted net income of $485 million, or $2.94 per share. Reported net income for 2010 increased to $769 million, or $4.63 per share. Full year 2009 reported net income was $336 million, or $2.03 per share.
“Our record fourth quarter sales and earnings capped what was an excellent year for PPG and give us momentum heading into 2011,” says Charles E. Bunch, PPG chairman and chief executive officer. “In the quarter, our coatings and optical and specialty materials segments combined to post sales and earnings records despite increasing raw materials costs for coatings. Our commodity chemicals and glass segments continued their significant improvement trends by growing earnings by a combined $90 million year-over-year and delivering solid double-digit operating margins in a seasonally slow quarter.”
Bunch said that the company’s selling prices increased in each quarter during the year, and its businesses in emerging regions once again grew by double-digit percentages.
“Looking ahead to 2011, we anticipate that the global economic recovery will strengthen and broaden,” Bunch said. “This should drive volume increases for PPG, which we expect to leverage into higher earnings through our continued cost focus.”
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