PPG has reported second quarter 2021 net sales of approximately $4.4 billion, approximately 45% higher than the prior year. Selling prices increased by 3.5% and sales volumes were higher by approximately 24% in comparison to the previous year. Favourable foreign currency translation impacted net sales by about 6%, or about $185 million, and acquisition-related sales added more than 11% year on year.
Sales volumes for automotive refinish coatings were up by about 45% aided by an easier sales comparison to the second quarter 2020 that was impacted by the pandemic and were up a low single-digit percentage sequentially as body-shop activity continues to gradually improve.
Second quarter 2021 reported net income was $431 million, and adjusted net income was $465 million. Adjusted figures exclude after-tax items, including acquisition-related amortisation expenses and several other items. Second quarter 2020 reported net income from continuing operations was $99 million, and adjusted net income from continuing operations was $258 million.
“Our strong organic sales growth reflects a partial demand recovery from the pandemic, including above-market contributions across many of our businesses. However, our volume growth was significantly tempered due to various supply and component disruptions, including those that reduced the overall manufacturing capability of our customers. In addition, despite strong underlying end-use market demand, various coatings raw material shortages and logistics issues reduced our ability to fully supply our existing order book within the quarter. Our recent acquisitions also contributed to our strong year-on-year sales growth, and they are meeting our expectations,” said Michael H. McGarry, PPG chairman and CEO.
We continue to prioritise further selling price increases, which we expect will fully offset raw material cost inflation before the end of 2021, on a run-rate basis.
Overall economic demand growth remains very broad and robust and, as supply conditions normalise, we expect strong sales growth later this year and into next year aided by our technology-advantaged products, our diverse geographic and end-use market participation, and continuing recovery from our aerospace business.
As is PPG’s hallmark, we will continue to aggressively manage all aspects of our cost structure,” added McGarry.
“Finally, I am pleased that we closed the Tikkurila, Wörwag, and Cetelon transactions during the second quarter, and have now completed five acquisitions since December 2020. We welcome all our new colleagues to the PPG team as our well-experienced teams are rapidly integrating these acquisitions, and we are beginning to realize initial synergies. These acquisitions have greatly improved our product and technology portfolios, geographic reach, and sustainability capabilities. I want to thank all our employees around the world for their dedication and commitment to doing better today than yesterday, every day, in our efforts to continuously improve our company,” concluded McGarry.