PPG Industries (NYSE:PPG) today reported record second quarter 2014 net sales from continuing operations of $4.1 billion, up $199 million, or 5 percent, versus the prior year. Second quarter 2014 reported net income from continuing operations was $393 million, or $2.80 per diluted share. Second quarter 2014 adjusted net income from continuing operations was $398 million, or $2.83 per diluted share, which excludes $3 million after-tax, or 2 cents per diluted share, for pension settlement costs and $2 million after-tax, or 1 cent per diluted share, for acquisition-related costs.
Second quarter 2013 reported net income and earnings per diluted share from continuing operations were $318 million and $2.19, respectively. Adjusted net income from continuing operations was $331 million, or $2.28 per diluted share, and excluded acquisition-related costs of $13 million, or 9 cents per diluted share.
“The benefits of our new business portfolio are measurable, as our adjusted earnings per share from continuing operations increased 24 percent this quarter, with an average quarterly increase the past six quarters of more than 30 percent,” said Charles E. Bunch, PPG chairman and chief executive officer. “In the quarter, we continued to deliver growth across most of our businesses in comparison with strengthening prior-year results. We realized the highest growth in automotive OEM and various general industrial and specialty coatings end-use markets, as we continue to benefit from solid end-use market demand supplemented by customer adoption of new PPG technologies.
“We achieved consistent volume growth and improved year-over-year earnings in each major region,” Bunch added. “Europe led our performance improvement, growing earnings 28 percent, as PPG continues to realize excellent earnings contributions from the gradual economic improvement in that region, illustrating our earnings leverage driven by our previous structural cost-reduction actions. In the U.S. and Canada, the pace of growth was modest early in the quarter but accelerated in June. Our earnings in this region grew 12 percent, supported by continuing improvement across most end-use markets. Emerging-regions earnings advanced 14 percent, as PPG benefited from accelerating growth rates for automotive OEM and other industrial-related products in both China and India.
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