Toronto, Ontario — In this week’s Tuesday Ticker, PPG pummels its 2019 Q4 numbers, Fiat Chrysler and PSA make a final handshake and Axalta preps to unveil its full-year results for 2020.
PPG powers through
PPG has fourth quarter 2020 net sales of approximately US$3.8 billion, more than two percent higher versus the prior year. Selling prices increased by about 1.5%.
Sales volumes decreased approximately 1.5% versus the prior year, which reflects the ongoing, negative economic impacts of the COVID-19 pandemic in certain end-use markets. Favorable foreign currency translation impacted net sales by about 1.5%, or about $60 million, and acquisition-related sales, added less than 1% to sales growth.
Fourth quarter 2020 reported net income was $272 million, or $1.14 per diluted share, and adjusted net income was $378 million, or $1.59 per diluted share. Fourth quarter 2019 reported net income from continuing operations was $295 million, or $1.23 per diluted share, and adjusted net income from continuing operations was $313 million, or $1.31 per diluted share.
“Our strong earnings momentum continued in the fourth quarter as we delivered a second consecutive quarter of record operating margins,” said Michael H. McGarry, PPG chairman and CEO. “The more than 20 percent increase in our adjusted EPS was the result of strengthening year-over-year sales growth in our Industrial Coatings reportable segment, led by the automotive original equipment manufacturer (OEM), general industrial and packaging coatings businesses.”
“In addition to improving sales performance, we delivered nearly $40 million of incremental structural cost savings from business restructuring programs, bringing full-year savings to about $115 million,” said McGarry.
“Finally, in the past several months, we have announced several value-creating acquisitions, with each bringing differing strategic values to our portfolio,” he added. PPG recently acquired both industrial and automotive coatings manufacturer Wörwag and pavement coatings company Ennis Flint.
The birth of Stellantis
Stellantis has officially been formed after Fiat Chrysler Automobiles and PSA finalized its long-awaited merger last week.
The company has 11 members on its board of directors with John Elkann as chairman and Carlos Tavares as CEO. It has formed 9 governance committees to take care of operations including company-wide performance and strategy, planning, regions, manufacturing, brand and styling.
Stellantis is the fourth-largest automobile group in the world. It has industrial operations in over 30 countries across the world and the capability to cater to over 130 markets. The company already has presence in Europe, North America and South America and is looking to expand its reach in China, India, Africa, the Middle East and Oceania.
The new company is offering vehicles in almost all segments of the market under different brands including Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall. It has 29 electrified models in its line-up at present and plans to add 10 more.
Axalta announcement
Axalta will release its fourth quarter and full-year 2020 financial results after the close of trading on Wednesday, Feb. 3.
The release, and supporting materials, will be posted to the Investor Relations portion of Axalta’s website.
Also, the company will host a conference call at 8 a.m. EST on Thursday, Feb. 4, 2021.
CEO Robert W. Bryant and CFO Sean Lannon will review the company’s financial performance for the period. A live webcast of the conference call will also be available online.
The dial-in phone number for the conference call is (201) 689-8560. For those unable to participate, a replay of the call will be available through Feb. 11, 2021. The replay dial-in number is (412) 317-6671. The replay passcode is 13715146.
