Protective and decorative coatings company PPG Industries, Inc. (PPG) reported early on Thursday that its first quarter profits surged, despite lower revenues, because of a large, nonrecurring gain from commodity chemicals business separation.
The Pittsburgh-based company posted a first quarter net income of $2.410 billion, or $16.31 per share, surging from $13 million, or 8 cents per share, last year.
Adjusted earnings came in at $16.41 per share from $1.81 per share a year ago.
Excluding discontinued business, income from continuing operations came in at $219 million, or $1.48 per share in the quarter; last year the company posted a loss of $50 million, or 32 cents per share.
Adjusted earnings per share from continuing operations came in at $1.58 from $1.41 last year. On average, analysts were expecting the company to earn $1.54 per share from continuing operations in the quarter.
PPG Industries first quarter net sales were $3.331 billion, down slightly from $3.333 billion last year. Analysts were expecting revenues of $3.44 billion.
Charles Bunch, PPG Chairman and CEO, said, “During the quarter, we delivered strong performance in our coatings portfolio, as we grew aggregate coatings segment earnings by 13 percent versus last year’s record level.”
PPG Industries shares were up $6.37, or +4.59%, during Thursday morning trading. The stock is up +2.78% year-to-date.
The Bottom Line
Shares of PPG Industries (PPG) have a dividend yield of 1.76% based on Thursday’s intraday trading price of $138.77 and the company’s annualized dividend payout of $2.44 per share.
PPG Industries, Inc. (PPG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.