UPDATE: PPG Beats Q4 Expectations

reported upbeat earnings for the fourth quarter. The Pittsburgh, Pennsylvania-based company posted quarterly net income from continuing operations of $86 million, or $0.62 per diluted share, compared to 237 million, or $1.66 per share, in the year-ago period. Excluding certain items, the company's earnings climbed 26% to $2.11 per share. Its net sales from continuing operations rose 6% to $3.71 billion in the period, while net sales in local currencies climbed 10%. However, analysts were expecting earnings of $1.99 per share on revenue of $3.57 billion. Performance Coatings segment net sales climbed 10% to $2.1 billion in the quarter, while Industrial Coatings segment net sales gained 1% to $1.34 billion. Glass segment net sales climbed 3% to $272 million. Cash and short-term investments totaled $1.2 billion at year-end. During the quarter, PPG repurchased $300 million, or around 1.4 million shares, of PPG stock. For the year, PPG's profit slipped 35% to $2.1 billion. Its revenue gained around 2% to $15.36 billion. “We established new fourth quarter and full-year milestones in sales and adjusted earnings per share from continuing operations,” said Charles E. Bunch, PPG chairman and chief executive officer. “Our strong financial performance, including several consecutive years of at least 20 percent adjusted earnings growth, clearly illustrates the benefits of our active portfolio management, earnings-accretive cash deployment and persistent operational focus. PPG shares closed at $226.97 yesterday.