PPG (NYSE:PPG) today reported fourth quarter 2019 net sales of nearly $3.7 billion, up approximately 1% versus the prior year. Net sales in constant currencies grew about 2% year-over-year, aided by higher selling prices of almost 2%. Sales volumes declined nearly 3% versus the prior year. Unfavorable foreign currency translation impacted net sales by approximately 1%, or about $30 million, and acquisition-related sales, net of divestitures, added nearly 3% to net sales.
Fourth quarter 2019 reported net income from continuing operations was $295 million, or $1.23 per diluted share. Adjusted net income from continuing operations was $313 million, or $1.31 per diluted share. Fourth quarter 2018 reported net income from continuing operations was $256 million, or $1.07 per diluted share, and adjusted net income from continuing operations was $271 million, or $1.15 per diluted share. For the fourth quarter 2019, the effective and adjusted tax rates were both about 24%. For the fourth quarter 2018, the effective and adjusted tax rates were approximately 24% and 26% respectively. Reconciliations of the reported to adjusted figures are included below.
“For the second consecutive quarter, we delivered adjusted earnings per share growth of more than 10%, reflecting continuing improvement in our segment operating margins, which increased 160 basis points year-over-year,” said Michael H. McGarry, PPG chairman and chief executive officer. “We delivered this strong performance in spite of weakening global manufacturing activity that impacted many of our industrial end-use markets. As the quarter progressed, industrial demand began to stabilize in China, but remained challenged in Europe and the U.S.
“For the full year, we delivered adjusted earnings per diluted share growth of about 8%, excluding foreign currency translation, firmly within the 2019 earnings guidance we provided last January. I am pleased that we achieved our earnings target despite macroeconomic conditions that weakened throughout the year. This record performance, including strong adjusted earnings and cash flow growth, reflects our focus on delivering value-added products and services to our customers and our focus on operational excellence and working capital improvement.
“Strategically, we completed several acquisitions during the year including Whitford, Hemmelrath, Dexmet, and Texstars. Annualized revenue of the acquisitions we have announced since December 2018 is approximately $500 million, of which about $100 million is in the Asia-Pacific region. We are pleased to welcome these businesses, their customers and our new employees into the PPG family.
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