The company said its third quarter aggregate sales volumes are anticipated to be down 8% to 15%, differing by business and region.
PPG Industries reported that its sales fell by 25% in the second quarter as the COVID-19 pandemic forced a worldwide economic slowdown.
Despite the overall decline, the company got a boost from its house paints segment because of “increased do-it-yourself demand” as people stayed home, said Michael McGarry, chairman and chief executive of PPG. The company also saw improvement at its operations in China that make automotive and industrial coatings as that country’s economy began to recover, said McGarry.
The company said its third quarter aggregate sales volumes are anticipated to be down 8% to 15%, differing by business and region. The wide range is due to ongoing uncertainty over the demand impacts of the pandemic in various major global regions.
Net income dropped by 63% from a year ago to $99 million, or 42 cents per share. Sales for the quarter totaled $3 billion, down from $4 billion in the year-ago period. Unfavorable foreign exchange rates impacted sales by more than 3%, or about $135 million.
Sales of performance coatings — which include architectural house paints, aerospace coatings and automotive refinishes — fell by 15% from a year ago.
Sales of industrial coatings took a hit of about 40% largely because of production declines in the automotive industry.
The company said it delivered $170 million in savings during the quarter from cost-cutting initiatives and more than $20 million in savings from business restructuring programs. The company announced an increase of 6% to 54 cents per share as the quarterly dividend.
“Our quick and decisive actions at the outset of the pandemic helped to mitigate the earnings impact from the lower demand,” said McGarry.
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