What were PPG's second quarter 2024 results?

PPG reported net sales of $4,794 million, reported net income attributable to PPG of $528 million, and reported EPS of $2.24. On an adjusted basis, EPS was $2.50, and organic sales were flat versus the prior year.

What is PPG's outlook for 2024?

For the third quarter of 2024, PPG projected flat to up low single-digit organic sales growth and adjusted EPS of $2.10 to $2.20 per share. For full-year 2024, it projected flat to up low single-digit organic sales growth and adjusted EPS of $8.15 to $8.30 per share. The company expects its effective tax rate for the third quarter to be between 23.5% and 24.5%.

How did the segments perform?

Performance Coatings net sales were flat at $3,048 million, with segment income up 6% to $570 million. Industrial Coatings net sales declined 5% to $1,746 million, though segment income rose 4% to $259 million as input costs moderated.

How is PPG returning capital to shareholders and managing its balance sheet?

PPG repurchased approximately $150 million of shares in the quarter and about $300 million year to date. At June 30, 2024, cash and short-term investments totaled $1.2 billion and net debt was $5.2 billion, down $0.4 billion from the second quarter of 2023.

What strategic actions is PPG pursuing?

PPG stated that strategic reviews of its architectural coatings U.S. and Canada business and its global silicas business, both announced in the first quarter of 2024, are progressing and remain on schedule. The company is working toward determining paths forward for each.

PPG 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 18, 2024. Cited figures are marked; the original filing is the authoritative source.

PPG Industries, Inc. reported second quarter 2024 results in a press release furnished as Exhibit 99 to this Form 8-K, dated July 18, 2024.

The company reported net sales of $4,794 million^a, down from $4,872 million in the second quarter of 2023, with organic sales flat year over year. Reported net income attributable to PPG was $528 million, compared with $490 million a year earlier, and reported EPS was $2.24 versus $2.06. Adjusted EPS was $2.50 versus $2.25, and the company described these as record reported and adjusted EPS for the quarter.

Segment margins improved 110 basis points year over year, which management described as the seventh consecutive quarter of margin improvement. Management highlighted share repurchases of approximately $150 million^b in the quarter and about $300 million year to date. At quarter end, cash and short-term investments totaled $1.2 billion and net debt was $5.2 billion, down $0.4 billion from the second quarter of 2023.

Performance Coatings net sales were flat at $3,048 million^c, while Industrial Coatings net sales fell to $1,746 million from $1,831 million, driven by lower selling prices on index-based contracts and unfavorable currency translation. For the third quarter of 2024, PPG projected organic sales growth of flat to up low single digits and adjusted EPS of $2.10 to $2.20 per share.

For full-year 2024, it projected organic sales growth of flat to up low single digits and adjusted EPS of $8.15 to $8.30^d per share. The company also said strategic reviews of its architectural coatings U.S. and Canada business and its global silicas business were progressing.

02—Key points

Key Highlights

Record reported EPS of $2.24 and record adjusted EPS of $2.50 for Q2 2024, versus $2.06 and $2.25 in Q2 2023.
Net sales of $4,794 million, down from $4,872 million; organic sales flat year over year.
Segment margins improved 110 basis points year over year, the seventh consecutive quarter of margin expansion per management.
Share repurchases of approximately $150 million in the quarter and about $300 million year to date.
Net debt of $5.2 billion, down $0.4 billion from Q2 2023; cash and short-term investments of $1.2 billion.
Full-year 2024 guidance: organic sales flat to up low single digits and adjusted EPS of $8.15 to $8.30 per share.
Strategic reviews of the architectural coatings U.S. and Canada business and the global silicas business remain on schedule.

03—Questions

Frequently Asked Questions

What were PPG's second quarter 2024 results?
PPG reported net sales of $4,794 million, reported net income attributable to PPG of $528 million, and reported EPS of $2.24. On an adjusted basis, EPS was $2.50, and organic sales were flat versus the prior year.
What is PPG's outlook for 2024?
For the third quarter of 2024, PPG projected flat to up low single-digit organic sales growth and adjusted EPS of $2.10 to $2.20 per share. For full-year 2024, it projected flat to up low single-digit organic sales growth and adjusted EPS of $8.15 to $8.30 per share. The company expects its effective tax rate for the third quarter to be between 23.5% and 24.5%.
How did the segments perform?
Performance Coatings net sales were flat at $3,048 million, with segment income up 6% to $570 million. Industrial Coatings net sales declined 5% to $1,746 million, though segment income rose 4% to $259 million as input costs moderated.
How is PPG returning capital to shareholders and managing its balance sheet?
PPG repurchased approximately $150 million of shares in the quarter and about $300 million year to date. At June 30, 2024, cash and short-term investments totaled $1.2 billion and net debt was $5.2 billion, down $0.4 billion from the second quarter of 2023.
What strategic actions is PPG pursuing?
PPG stated that strategic reviews of its architectural coatings U.S. and Canada business and its global silicas business, both announced in the first quarter of 2024, are progressing and remain on schedule. The company is working toward determining paths forward for each.

04—Continue

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