US chemical and coating manufacturer PPG Industries Thursday reported fourth-quarter net income of $216 million, 5.4% above the $205 million it posted a year ago.
The Pittsburgh-based company said its full-year net income rose 43% to $1.1 billion from $769 million in 2010.
PPG said Q4 net sales rose 4% to $3.5 billion from $3.4 billion a year earlier, while annual sales for 2011 increased 11% to $14.9 billion from $13.4 billion in 2010.
"During the year, we experienced uneven economic conditions, persistent raw material inflation, and continued anemic construction activity in developed regions. However, the geographic and end-use market diversity of our business portfolio continued to be an important benefit in 2011," Chairman and CEO Charles Bunch said in a statement.
He said Q4 2011 volumes were flat with the prior-year period, as some customers curtailed inventory and remained cautious with their ordering patterns in light of economic uncertainty.
Earnings in the company's commodity chemical sector fell 19% to $63 million, down $10 million from the fourth quarter 2010 on lower volumes and a reduced manufacturing capacity utilization.
But sales in the same segment edged up nearly 6% to $398 million for the quarter, an increase of $22 million over Q4 2010.
"Pricing improved, but volumes were down notably due to significantly lower chlorine industry demand and customer inventory management actions," the company said.
Bunch said he expects first-quarter growth to remain uneven by region and varied by industry. "We expect the European region to remain the most challenging ... [and see] moderate strengthening in the US economic recovery, supported by an enhanced global cost position in the industrial sector due to lower regional natural gas prices."
