Glass manufacturer and fabricator PPG Industries Inc. reported mixed sales and earnings results for its glass operations for the second quarter and half year, which ended June 30.
Glass sales for the quarter decreased $3 million, or 1 percent, to $581 million as lower selling prices and lower volumes across all businesses except automotive replacement glass exceeded the impact of foreign currencies. However, for the six months of the year glass sales were up to $1.135 billion from $1.121 billion in the first six months of 2004.
Despite improved manufacturing efficiencies, operating earnings in the second quarter of this year were down $18 million to $52 million as a result of inflation, including higher energy costs; lower selling prices; and lower other income. Operating income for the six months ended June 30 was $93 million, down from $95 million in the same period the year before.
Overall, the company reported second quarter net income of $231 million. Sales were $2.66 billion, a record for any quarter. That compares with second quarter 2004 net income of $187 million. Sales for the second quarter of 2004 were $2.43 billion.
For the first six months of 2005, PPG recorded net income of $326 million and sales of $5.15 billion. For the first six months of 2004, the Pittsburgh, Pa. based company recorded net income of $306 million on sales of $4.69 billion.
Commenting on the results, Charles E. Bunch, chairman and chief executive officer, said, "While the global economy shows signs of moderating, we see continued strength in our coatings and chemicals segments, which achieved record sales each of the past two quarters. This measurable proof validates our earnings growth strategies and positions PPG to continue generating shareholder returns."
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