I am a cynic by nature, but the quarterly results that PPG Industries
While the headline numbers are nice, the segment operating results are even better. Each one of PPG's operating segments reported sales increases of 10% or more. PPG's results seem even more impressive in light of the slowing U.S. economy. Judging from today's 4%-plus gain in PPG's stock price, investors apparently expected weaker results. While a large portion of its products are used in the manufacture of new items -- whether for industrial users or consumers -- PPG's diversification should keep it fairly safe from a slowing economy.
The U.S. economy will matter less to PPG in the future than it has in the past. PPG's recently closed acquisition of Netherlands-based SigmaKalon will push PPG's U.S.-based revenues down substantially going forward, to around 50%.
While things are going well for PPG, its good fortunes have not been shared equally throughout the paint and coatings industry. Peer Sherwin-Williams'
Fool contributor Michael Goode is an investor who lives in St. Louis. Going by the handle EverydayInvestor, he is currently ranked 32 out of more than 81,000 players on Motley Fool CAPS. He has no position in any company mentioned, although his house is painted with PPG's Porter brand paint. The Motley Fool has a disclosure policy.