PPG Industries, a coatings company based in Pittsburgh, has announced an increase in sales and profit for the second quarter of the fiscal year, resulting in an adjusted earnings per-share outlook raised for the full year. Here are the key details:
- Second-quarter sales for PPG Industries totaled $4.87 billion, surpassing the $4.69 billion recorded in the same period last year. Analysts had estimated sales to reach $4.84 billion.
- The company reported adjusted earnings of $2.25 per share, an improvement from $1.81 per share in the previous year’s quarter. Analysts had predicted adjusted earnings of $2.13 per share.
- PPG Industries recorded a net income of $490 million compared to $441 million in the prior-year period. The FactSet analyst consensus was $484.6 million.
Chief Executive Tim Knavish commented on the company’s performance:
- Global Macroeconomic Environment: Knavish expects the global macroeconomic environment to remain consistent with the second quarter, with continued slow growth in global industrial production. He also anticipates a decrease in U.S. architectural residential repaint due to significantly lower existing home sales.
- China: The company foresees modest sequential demand improvement in China.
- Europe: PPG Industries predicts that aggregate European demand will stabilize at current lower levels.
- Supply Availability: The company has restored its supply chain and raw material availability to pre-pandemic levels, with some instances of excess supply.
- Third Quarter: PPG Industries projects organic sales to increase by a low single-digit percentage year-over-year, with adjusted earnings between $1.85 and $1.95 per share.
- Fiscal Year 2023: The company has revised its adjusted earnings outlook for fiscal 2023 to a range of $7.28 to $7.48 per share, up from the previous range of $6.95 to $7.25 per share.
These positive figures and the improved outlook highlight PPG Industries’ strong performance in the coatings sector.