Skip to content
AnalystLens

PPG Industries 8-K Report, Financial Results (Oct 16, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 16, 2024
Period End
October 16, 2024
Security
PPG
In the record · 2016–202610-K1210-Q338-K141

PPG filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Restatement8-K · Jun ’18Jun ’18
  2. Restructuring8-K · Jun ’20Jun ’20
  3. Material agreement8-K · May ’22May ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed October 16, 2024. Cited figures are marked; the original filing is the authoritative source.

PPG Industries, Inc. furnished an earnings press release under Item 2.02 reporting third quarter 2024 results.

Reported diluted EPS was $2.00a, a record for a third quarter, and adjusted EPS was $2.13, up 3% from $2.07 a year earlier. Net sales were $4,575 million, down (1)% from $4,644 million, with organic sales flat year over year. Reported net income rose 10% to $468 million, while adjusted net income rose 1% to $500 million.

Segment margins improved 60 basis points year over year, the eighth consecutive quarter of margin expansion. The two segments diverged. Performance Coatings net sales rose 1% to $2,921 millionb, sales volumes grew 2%, and segment income increased 13% to $513 million, with the segment margin reaching 17.6% versus 15.7%.

Industrial Coatings net sales fell (6)% to $1,654 million and segment income fell (19)% to $199 millionc, as lower sales volumes and index-based price reductions weighed on results. Automotive OEM coatings organic sales declined by a double-digit percentage, and PPG cited weakening U.S. and European build rates late in the quarter. PPG repurchased about $200 million of stock in the quarter and about $500 million year to date, and it paid about $160 million in dividends in the quarter after a 5% dividend increase in July.

Net debt was $5.2 billiond, up $0.3 billion from a year earlier. Management maintained its full-year 2024 guidance, expecting flat organic sales and adjusted EPS at the low end of the $8.15 to $8.30 range. It also cited the pending closure of the silicas products business divestiture and a strategic review of the architectural coatings U.S. and Canada business.

02—Key points

Key Highlights

  1. Third quarter 2024 reported EPS of $2.00 (up 12% from $1.79) and adjusted EPS of $2.13 (up 3% from $2.07); net sales of $4,575 million, down (1)%, with organic sales flat.
  2. Performance Coatings segment: net sales up 1% to $2,921 million, segment income up 13% to $513 million, and segment margin of 17.6% versus 15.7%, driven by volume growth of 2%, aerospace strength, and refinish share gains.
  3. Industrial Coatings segment: net sales down (6)% to $1,654 million, segment income down (19)% to $199 million, and segment margin of 12.0% versus 13.9%, on lower volumes and index-based pricing; automotive OEM organic sales fell by a double-digit percentage.
  4. Aerospace coatings delivered record quarterly sales with an order backlog of approximately $290 million.
  5. Capital returns: about $200 million of share repurchases in the quarter and $500 million year to date; about $465 million of dividends paid year to date, following a 5% quarterly dividend increase in July.
  6. Balance sheet: cash and short-term investments of $1.3 billion and net debt of $5.2 billion, up $0.3 billion from the prior year; nine-month cash from operating activities was $1,074 million versus $1,513 million a year earlier.
  7. Full-year 2024 outlook maintained: organic sales expected flat and adjusted EPS at the low end of $8.15 to $8.30; pending silicas products business divestiture closure and architectural coatings U.S. and Canada strategic review noted.

03—Questions

Frequently Asked Questions

  1. How did PPG perform in the third quarter of 2024?

    PPG reported diluted EPS of $2.00 and adjusted EPS of $2.13, up 3% from $2.07. Net sales were $4,575 million, down (1)% from $4,644 million, with organic sales flat. Reported net income rose 10% to $468 million.

  2. Why did Industrial Coatings underperform Performance Coatings?

    Industrial Coatings net sales fell (6)% and segment income fell (19)%, driven by lower sales volumes, lower selling prices on certain index-based customer contracts, and a double-digit percentage decline in automotive OEM organic sales as U.S. and European build rates weakened late in the quarter. Performance Coatings grew, led by aerospace, protective and marine, and architectural coatings in the Americas and Asia Pacific.

  3. Did PPG change its 2024 guidance?

    No. PPG maintained its full-year 2024 guidance, expecting organic sales to be flat and adjusted EPS to be at the low end of the $8.15 to $8.30 range.

  4. How much did PPG return to shareholders?

    PPG repurchased about $200 million of stock in the third quarter and about $500 million year to date. It paid about $160 million in dividends in the quarter and about $465 million year to date, after raising its quarterly dividend by 5% in July.

  5. What strategic actions did PPG highlight?

    PPG cited the pending closure of the silicas products business divestiture and a strategic review of the architectural coatings U.S. and Canada business. Management said these actions reflect its strategy of focusing resources on businesses with the greatest growth and margin opportunities.

04—Continue

← View all 8-K filings