Paint manufacturer PPG has announced its fourth-quarter and fiscal year 2020 financial results, noting net sales of $3.8 billion in the final quarter of the year, up about two percent from the same period in 2019.
PPG says selling prices increased by about 1.5 percent in 2020, and sales volumes decreased about 1.5 percent from 2019 levels.
In addition, the company is reporting record full-year operating cash flow of roughly $2.1 billion, despite lower full-year sales.
In the fourth quarter, the company reported net income of roughly $272 million, down from $295 million in the final quarter of 2019.
“Our strong earnings momentum continued in the fourth quarter as we delivered a second consecutive quarter of record operating margins,” says Michael H. McGarry, PPG chairman and chief executive officer. “In addition, the global architectural coatings business continued its excellent execution as we leveraged higher year-over-year sales into strong earnings growth. Consistent with the third quarter, we achieved improved operating results despite continued weakness in several key end-use markets, including aerospace and automotive refinish coatings, which are still being heavily impacted by the ongoing pandemic.”
In a statement, McGarry says PPG will recognize its frontline and field workers by distributing roughly $6 million in bonus pay. PPG’s charitable branch, the PPG Foundation, will provide relief support by donating about $2 million to communities near PPG operations.
For the 2020 fiscal year, PPG reports net sales of roughly $13.8 billion, down about 9 percent from 2019 levels. Its net income stands at $1.1 billion.