PPG Profit Rises 13%; Europe Leads Sales Growth

By Dow Jones Business News, 
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By Tess Stynes

PPG Industries Inc. ( PPG ) said its second-quarter earnings rose 13% on growth across its major geographic markets, led by Europe.

Pittsburgh-based PPG, which makes coatings for the auto, aircraft and other markets, has been realigning its businesses in recent years to focus more on paint and other coatings from glass and chemicals.

Last month, PPG reached a $2.3 billion deal to acquire Mexico's largest paint maker, Consorcio Comex SA, aiming to capitalize on potential upswing in the country's housing market and a failed effort by rival Sherwin-Williams Co. (SHW) to do the same. PPG said it was confident that its deal for Comex would withstand regulatory scrutiny, which aborted a similar offer by Sherwin-Williams.

In the latest quarter, PPG generated consistent volume growth and strong earnings in each of its major geographic markets, led by Europe, where earnings rose 28% thanks to a strengthening economy and cost-cutting efforts, Chairman and Chief Executive Charles Bunch said.

The company also saw growth across most of its businesses, led by automotive OEM and various general industrial and specialty coatings end-use markets, he said.

PPG--whose paint brands include Olympic and Glidden--reported a profit of $386 million, or $2.75 a share, up from $341 million, or $2.35 a share, a year earlier. Excluding items such as pension-settlement costs and acquisition-related charges, adjusted earnings from continuing operations rose to $2.83 from $2.28. Revenue increased 5.1% to $4.08 billion.

Analysts polled by Thomson Reuters expected per-share profit of $2.77 and revenue of $4.14 billion.

Earlier Thursday, Sherwin-Williams reported that its second-quarter earnings jumped 13% as revenue growth was driven by higher sales volume in its paint stores and benefits from acquisitions.

Write to Tess Stynes at tess.stynes@wsj.com

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