PPG Industries Inc.'s (PPG) second-quarter earnings fell 5.8% as impacts from the separation of the paint-and-coatings supplier's former commodity chemicals business earlier this year masking improved sales.
Results beat expectations.
About a year ago, PPG agreed to form a new company by separating its chemicals business and merging the unit with Georgia Gulf Corp. in a cash-and-stock deal valued at about $2.1 billion. The deal was completed in late January, with the new company called Axiall Corp. (AXLL).
PPG, which also makes coatings for the auto, aircraft and other markets, has been shifting its emphasis to paint and other coatings from glass and chemicals. In December, PPG agreed to buy the North American architectural coatings business of Amsterdam's Akzo Nobel NV (AKZOY, AKZA.AE) for $875 million in a bid to increase its exposure in the region ahead of a recovering U.S. construction market. Akzo accounted for about $475 million in sales this quarter.
Overall, PPG reported a profit of $341 million, or $2.35 a share, versus a year-earlier profit of $362 million, or $2.34 cents a share. Excluding acquisition-related charges, earnings were $2.45 a share.
Net sales climbed 16% to $4.1 billion.
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