PPG Industries, Inc. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million dollars)
FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of change
Sales 15,200 14,885 2.1 -
Income before income taxes 1,402 1,597 (12.2) -
Industrial Coatings
Sales 4,379 4,158 5.3 1)


1) The Industrial Coatings segment's sales increased by 5.3% from the prior year. The sales increase was comprised of 3% due to price and 4% due to volume offset by a 3% decrease due to currency translation. Sales from acquisitions contributed 1% to the increase. The volume growth 4% was driven by automotive OEM coatings growth especially in North America, due in part to Japan and China.


-The Company announced that it and its subsidiary, PPG industries Colombia, have completed the acquisition of the coatings businesses of Colpisa Colombiana de Pinturas and its affiliates, including Colpisa Ecuadore. In acquiring Colpisa, the Company becomes the only major coatings supplier with a direct automotive OEM coatings manufacturing presence in Colombia. Colpisa was founded in 1973 and manufactures and distributes in Colombia and Ecuador. (From a press release on January 18, 2012)

Joint Ventures

-The Company announced that it has received the necessary approvals from Indian authorities to expand its coatings joint venture and also to create a second joint venture with Asian Paints Ltd. (APL), India's largest coatings company. The Company and APL will expand their current 50-50 joint venture, Mumbai-based Asian PPG Industries, to now serve India's industrial liquid, marine, consumer packaging and transportation coatings. They also will form a second 50-50 joint venture, Asian Paints PPG Limited, to serve protective, industrial powder, industrial container and light industrial coatings. (From a press release on July 12, 2012)


R&D Expenditure

(in million dollars)
FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 470 445 408
% of Sales
3.1 3.0 3.0


R&D Facilities

-Coatings: Allison Park, Pa., USA
-Optical and Specialty Materials: Monroeville, Pa., USA
-Fiber Glass: Shelby, N.C., USA
-Glass: Harmar, Pa., USA

Product Development

B1:B2 Compact Paint System
-The Company was named a 2012 Automotive news PACE Award winner for its Premium B1:B2 Compact Paint System. The system enables automotive manufacturers to reduce the number of steps necessary to paint a vehicle. It moves the traditional primer application into the topcoat booth. The B1 layer provides the primary primer function for chip and durability benefits, and the B2 layer provides color and additional durability. The tow layers are applied wet-on-wet, reducing the baking or heated dehydration processes. (From a press release on April 26, 2012)

Investment Activities

Capital Spending

(in million dollars)
FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 533 446 341
% of Sales 3.5 3.0 2.5