FinancialFlash  
PPG Segment Income Increases  
Despite Lower Glass Sales  
lass segment net sales may  
have been down slightly in the  
2015 fourth quarter for PPG  
PPG IndusuntraiuedsiteSde) (g$minemniltlioInnsf)ormation  
(
G
Industries,but segment income was up.  
Net sales dropped $7 million, or 3 per-  
cent, year-over-year to $265 million for  
the quarter,PPG Industries reported in  
its fourth-quarter 2015 statement. The  
report noted that for the segment,  
3 Months Ended 12/31  
Year Ended 12/31  
2015  
2014  
2015  
2014  
Net Sales  
Glass  
$265  
$272  
$1,089  
$8765  
$1,110  
$8698  
Performance Coatings  
Segment Income  
Glass  
$2060  
$2091  
higher sales volumes and improved  
selling prices were offset by unfavorable  
foreign currency translation and re-  
duced sales stemming from the 2014  
sale of a flat glass production facility.  
$38  
$33  
$137  
$81  
Performance Coatings  
$250  
$239  
$1302  
$1205  
Solid flat glass demand continued for which is undergoing major repairs.  
value-added products serving residen- Overall, 2015 net sales from continu- from continuing operations was $332  
tial and non-residential end-use mar- ing operations were $3.7 billion, consis- million,or $1.23 per diluted share.  
kets.” Its segment income, though, was tent with the prior year.Net sales in local “We once again delivered strong fi-  
38 million, up $5 million versus the currencies grew 7 percent year-over-year, nancial performance in the fourth  
Fourth-quarter 2015 adjusted net income  
$
prior year.According to the report, this with acquisition-related sales adding 5 quarter and for the full year of 2015,”  
was driven by improved organic sales percent and sales volume growth con- says Michael H. McGarry, PPG presi-  
that were partially offset by weak man- tributing nearly 2 percent. Net income dent and CEO. “Results improved de-  
ufacturing cost performance related to from continuing operations was $314 spite the persistent,unfavorable impact  
the Fresno, Calif., flat glass facility, million, or $1.16 per diluted share. of weaker foreign currencies, which  
were more than offset by benefits from  
our earnings-accretive cash deploy-  
ment, improving sales volumes and our  
unwavering focus on costs. While  
overall global economic demand re-  
mained mixed in the quarter, our sales  
Glfaastssttaort tno thRe yeearpheolperdtGslasItonn ficnisrhe20a15sweithda 1S2-apelrceenst in-  
crease in net sales from 2014. Net sales totaled $140 million, with the  
machines and services business areas both showing increased net  
volumes grew about 2 percent,which is  
our highest year-over-year volume  
growth in any quarter of 2015.”  
A
sales, particularly in North America. Orders received totaled $121.9 million.  
The order book on December 31, 2015 was $43.7 million, weaker than a  
record-high $63.5 million at the end of 2014.  
The company’s industrial coatings seg-  
ment recorded net sales of $1.37 billion,  
increasing $27 million,or 2 percent,over  
the prior year. Performance coatings net  
sales were $2.06 billion, down about 2  
percent versus the prior-year period.  
“As we enter 2016, we anticipate global  
economic growth will continue, but at a  
variedpaceandmixedbymajoreconomy,”  
says McGarry.“In the Asia Pacific region,  
growth will likely remain uneven through  
the year but solid on a full-year basis.” s  
The single most significant event for Glaston during 2015 was the disposal of  
pre-processing operations,” says president and CEO Arto Metsänen. “The sales  
decision was influenced particularly by the fact that the profitability of the pre-  
processing operations did not correspond with our objectives and developing the  
operations in question to the target level would have demanded significant in-  
vestment. As a result of the sale of the pre-processing machines business, our  
structure has been streamlined: we now focus on high technology heat treatment  
and services. In our view, the growth prospects in these product groups are good.”  
The company expects 2016 net sales to be slightly below the 2015 level, “[d]ue  
to the subdued market situation and reduced order book,” according to the release.  
30  
USGlass, Metal & Glazing | April 2016  
www.usglassmag.com