PPG Industries, Inc. (NYSE:PPG) stock fell 1.71% (As on Jan 21, 12:05:02 AM UTC-4, Source: Google Finance) after the company’s bottom line totaled $286 million in the fourth quarter of FY 21, compared with $272 million, in last year’s fourth quarter. Performance Coatings net sales increased primarily due to acquisition-related sales and selling price increases across all businesses. While demand remained strong in most end-use markets, raw material availability constrained sales in all businesses, with the largest impacts in the architectural Americas and Asia Pacific, automotive refinish and aerospace coatings businesses. As expected, demand for architectural coatings do-it-yourself products continued to contract in all major regions compared to elevated 2020 fourth quarter levels. Automotive refinish coatings organic sales grew by a mid-single-digit percentage as demand continues to gradually improve and the company outperformed market growth, with further recovery expected as aggregate body shop demand remains about 10% below pre-pandemic levels. Aerospace coatings sales volumes were well above prior-year levels despite increasing manufacturing disruptions, but still remain about 20% below fourth quarter 2019 levels. Protective and marine coatings sales volumes were up about 10% year-over-year driven by strong above-market growth. Ennis-Flint and Tikkurila represented the majority of the acquisition-related sales.
Moreover, Industrial Coatings net sales increased primarily due to acquisition-related sales and selling price increases across all businesses, partially offset by lower sales volumes. In comparison to strong prior year demand, automotive original equipment manufacturer (OEM) coatings sales volumes were down and slightly below automotive industry production rates due to customer mix, and continued to be impacted by lower year-over-year industry production due to semiconductor chip shortages. Industrial coatings sales volumes were lower driven by softer demand in Asia Pacific and in comparison with a strong, prior-year pandemic recovery-related demand. Packaging coatings once again delivered strong organic sales growth, led by higher selling prices and strong sales volumes in the U.S. and Canada and EMEA regions. Wörwag, Tikkurila and Cetelon represented the acquisition-related sales.
PPG in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.19, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 11.4 percent to $4.19 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $4.03 billion.
For the first quarter ending in April, PPG Industries expects its per-share earnings to range from $1.02 to $1.20. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.42.