Cost Cuts Help PPG Industries Q3 Profits
Chemicals producer PPG Industries posted a better-than-expected quarterly profit on Thursday as cost cuts helped offset nearly flat revenue.
For the third quarter, net income rose to $339 million, or $2.18 per share, from $311 million, or $1.96 per share, in the year-ago period.
Excluding one-time items, the company earned $2.24 per share. By that measure, analysts expected $2.20, according to Thomson Reuters I/B/E/S.
Net sales slipped less than 1% to $3.85 billion. Analysts expected $3.91 billion.
Pittsburgh-based PPG cut its cost of sales 3% to $2.3 billion.
"Looking to the fourth quarter, we are heading into a seasonally slower period in most end-use markets and expect little change in the inconsistent performance of economies outside North America," Chief Executive Charles Bunch said in a statement.
During the quarter, PPG Industries sold its commodity chemicals business to Georgia Gulf for $2.1 billion in a complex transaction. PPG Industries shareholders receive 50.5% of the shares of a new company to be formed, and Georgia Gulf shareholders get the rest.
The sale gives PPG Industries the cash to bolster its performance coatings and industrial coatings businesses, which make up more than one-half of sales.
PPG Industries also makes the popular Transitions line of eyeglasses.
