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PPG Reports Record First Quarter 2021 Financial Results April 15 , 2021 • • Record first quarter net sales of approximately $ 3.9 billion , about 15 % higher than prior year Record reported earnings per diluted share ( EPS ) of $ 1.58 and adjusted EPS of $ 1.88 Sales volumes grew about 7 % year over year reflecting continued , broad global economic recovery , resulting in strong earnings leverage due to the company's lower cost base • Additional pricing actions already initiated due to rising input costs • Cash and short - term investments of approximately $ 1.9 billion at quarter - end Completed VersaFlex acquisition and expect the Tikkurila and Wörwag acquisitions to close in the second quarter PITTSBURGH -- ( BUSINESS WIRE ) -- PPG ( NYSE : PPG ) today reported first quarter 2021 net sales of approximately $ 3.9 billion , approximately 15 % higher than the prior year . Selling prices increased by nearly 2 % and sales volumes were higher by approximately 7 % year over year . Favorable foreign currency translation impacted net sales by more than 3 % , or about $ 110 million , and acquisition - related sales contributed nearly 3 % of the sales growth . First quarter 2021 reported net income was $ 378 million , or $ 1.58 per diluted share , and adjusted net income was $ 450 million , or $ 1.88 per diluted share . Adjusted figures exclude after - tax items , including acquisition - related amortization expense of $ 29 million and other expenses of $ 43 million , primarily related to environmental remediation charges , expenses related to natural disasters , and other acquisition and integration - related costs . First quarter 2020 reported net income from continuing operations was $ 243 million , or $ 1.02 per diluted share , and adjusted net income from continuing operations was $ 310 million , or $ 1.31 per diluted share . The first quarter 2021 reported and adjusted effective tax rates were both approximately 23 % , compared to the first quarter 2020 reported and adjusted effective tax rates of about 22 % . Detailed reconciliations of the reported to adjusted figures are included below . " We delivered record adjusted EPS in the first quarter which is significantly above 2020 first quarter results , and also 27 % higher than first quarter 2019 despite sales volumes not yet having fully recovered to pre - COVID levels , " said Michael H. McGarry , PPG chairman and chief executive officer . " We delivered excellent operating performance in both reportable segments . We achieved these results despite experiencing accelerating raw material and logistics cost inflation during the quarter , and with demand remaining tepid in the global commercial aerospace and U.S. protective coatings end - use markets . The company's first quarter segment margins were at multi - year seasonal highs as we benefited from strong leverage on higher year - over - year net sales growth . " In addition to improving sales performance , we delivered about $ 35 million of structural cost savings from business restructuring programs and continue to target a total of about $ 125 million of savings for the full - year 2021. We also reduced our working capital as a percent of sales by 200 basis points , driving improved operating cash flow performance compared to the prior year quarter . Finally , we continued to make good progress around our announced acquisitions , closing the VersaFlex transaction and nearing completion of the Tikkurila and Wörwag acquisitions . We are rapidly integrating those acquisitions which have already closed , and we are forecasting total 2021 synergies from all acquisitions to be $ 25 million to $ 30 million , assuming that both Tikkurila and Wörwag are completed in May . " In the near - term , we are proactively managing through both direct supply chain disruptions and production constraints at some of our customers due to their input component shortages . These issues will likely delay some seasonal sales activity into the second half of the year , but overall demand growth across much of our business portfolio remains very strong . The commodity disruptions specifically affecting the coatings supply chain have resulted in raw material cost inflation , which we expect to remain elevated into at least the third quarter . We are prioritizing further selling price increases , which we expect to fully offset raw material cost inflation in the second half of 2021. In addition , we will continue to aggressively manage all aspects of our cost structure , " added McGarry . " Looking ahead , we expect overall global coatings demand growth to be broad - based across most of the end - use markets that we supply , including an eventual replenishment of many of our customers ' inventories . In addition , I am encouraged to