PPG Industries, Inc. Q1 Earnings Beat, Still Hopeful On AkzoNobel Merger

PPG Industries, Inc. (NYSE: PPG) early Thursday posted better than expected first quarter earnings and provided an update on its proposed merger with AkzoNobel N.V. (PINK: AKZOY).

Written by StockNews.com

The Pittsburgh-based paint and coatings maker reported:

Q1 earnings per share (EPS) of $1.35, which was $0.03 better than the Wall Street consensus estimate of $1.32.

Revenues rose 0.7% from last year to $3.57 billion, compared with analysts’ view for $3.53 billion…

sales volumes rose 2%…

it would soon boost prices to address higher raw material costs. Meanwhile, it continues to streamline operations in order to lower manufacturing and overhead costs, thereby preserving margins.

PPG also briefly discussed its “compelling proposal” back in March to merge with AkzoNobel.

That offer was rejected, and thus far AkzoNobel is completely unwilling to engage in meaningful discussions regarding a merger, but PPG remains optimistic that the deal could get done and benefit both sides greatly.

The company commented via press release:

“Looking ahead, we expect economic growth to remain modest, particularly in developed regions.

In the U.S. and Canada, aggregate customer demand has yet to match recent economic optimism.
We anticipate continued measured growth in Europe across most of our businesses.
Growth rates in emerging regions are expected to remain moderate, driven by:
- increased consumer demand in Asia and
- broad-based expansion across Latin America, including in Brazil, where we see improvements after a likely bottoming.”

…Year-to-date, PPG has gained 11.24%, versus a 4.89% rise in the benchmark S&P 500 index during the same period.

PPG currently has a StockNews.com POWR Rating of B (Buy), and is ranked #26 of 68 stocks in the Chemicals category.