* Q2 adj EPS $1.64 vs Wall Street view $1.43
* Revenue up 11 percent; volume up 10 percent
* Results positive indicator for economy
* PPG reviewing 'small to mid-size acquisitions'
* CEO sees continued gradual economic recovery
(Adds conference call, analyst, stock)
By Ernest Scheyder
NEW YORK, July 15 Paint, glass and chemicals
maker PPG Industries Inc (PPG.N) said on Thursday its
second-quarter profit jumped 86 percent, beating analysts'
estimates, as demand increased, especially in emerging
The company supplies a wide range of construction-related
industries. Sales at all but one segment increased during the
period, a sign the broader American economy continues to right
itself after the recession.
On a conference call with investors, executives said they
continue to see "solid growth" in the United States and Canada,
but that Asia and Latin America are areas were most growth is
Sales at PPG's industrial coatings segment, which are used
to protect steel, wood, ceramic and other materials on bridges,
trucks and other applications, spiked 27 percent as costs fell
and volumes rose.
The company also saw strong sales in its optical, commodity
chemicals and glass segments, all due to improving volumes. The
company's optical unit makes the popular Transitions lenses for
Sales at the company's architectural coatings division for
Europe, the Middle East and Africa fell 5 percent, partly due
to a strengthening dollar.
"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," Chief Executive Officer Charles
PPG said it would continue to use excess cash this year for
share repurchases, a strong sign executives are confident in
the company's financial health.
BY THE NUMBERS
The Pittsburgh-based company posted net income of $272
million, or $1.63 per share, compared with $146 million, or 89
cents per share, a year earlier.
Excluding a charge for an asbestos-related settlement, the
company earned $1.64 per share. By that measure, analysts had
expected $1.43, according to Thomson Reuters I/B/E/S.
About 7 cents of the earnings per share came from a
lower-than-expected tax rate of 28 percent.
Sales rose 11 percent to $3.49 billion, missing analysts'
estimates of $3.52 billion.
Volume rose 10 percent. Demand for some products was weak
in North America and Europe, but strong in Asia and Latin
America, the company said.
PPG also said it was considering several "small to
mid-size" acquisitions in the $20 million to $250 million
range, and that it had repurchased 1.6 million shares during
Shares were up 9 cents at $64.61 in afternoon trading. The
stock has traded between $44.77 and $72.24 in the past 52
(Reporting by Ernest Scheyder, editing by Gerald E. McCormick,
Lisa Von Ahn and Bernard Orr)