PPG (NYSE:PPG) today announced that first quarter 2023 adjusted
earnings per diluted share (EPS) is expected to be between $1.52
and $1.58, which exceeds the company’s previously communicated
guidance of $1.10 to $1.20.
“The pace of our operating margin recovery accelerated during
the quarter, driven by higher sales volumes and additional selling
price capture,” said Tim Knavish, PPG president and chief executive
officer. “Our stronger sales volume performance compared to our
guidance was led by the aerospace and automotive original equipment
manufacturer coatings businesses. In addition, we delivered higher
year-over-year earnings across most of our business portfolio
including Europe.”
The company also noted stronger-than-expected demand in PPG
Comex, along with U.S. architectural coatings where the company
benefitted from a recent customer win that aided quarterly results.
Sales volumes were also better in China due to fewer pandemic
disruptions than initially forecast.
In addition, the company reported that in March 2023, PPG
purchased group annuity contracts that transferred pension benefit
obligations for certain of the company’s retirees in the U.S. to
third-party insurance companies, resulting in an estimated non-cash
pension settlement charge of approximately $191 million, or $0.61
per share. The expected first quarter 2023 adjusted EPS noted above
excludes the impact of this pension settlement charge. A
reconciliation of expected adjusted EPS to expected reported EPS is
included below.
The company will announce detailed first quarter 2023 financial
results and provide full-year 2023 guidance on April 20, 2023,
after U.S. stock markets close. The company plans to hold an
earnings teleconference on April 21, 2023 at 8 a.m. ET., during
which it will provide more comprehensive updates and financial
projections.
The following details for PPG’s first quarter 2023 earnings
release and teleconference call include:
Earnings release:
Thursday, April 20, after U.S. stock
markets close
Teleconference:
Friday, April 21, 8 a.m. ET
PPG participants:
Tim Knavish, president and chief executive
officer
Vincent J. Morales, senior vice president
and chief financial officer
John Bruno, vice president, investor
relations
Webcast:
A live, listen-only webcast will be
available via the PPG Investor Center.
Telephone replay:
Available beginning at approximately 11
a.m. ET, Friday, April 21 through 11:59 p.m. ET, Friday, May 5.
Replay numbers:
US Toll Free: 1 866 813 9403
US (Local): 1 929 458 6194
Canada: 1 226 828 7578
UK (Local): 0204 525 0658
All other locations: +44 204 525 0658
Access Code: 960369
Web replay:
Replay of the webcast will be available
shortly after the call on the PPG Investor Center and will remain
through Thursday, April 18, 2024
The news release will be available on the PPG Investor Center
and PPG Newsroom.
Prepared remarks and details regarding PPG’s operating segment
results and other financials will be available on the PPG Investor
Center after the earnings release.
Non-GAAP Financial Measures
Adjusted earnings per diluted share as included in this press
release is considered a “non-GAAP financial measure” under
Securities and Exchange Commission rules. PPG’s management
considers adjusted earnings per diluted share useful in providing
insight into the company’s ongoing performance because it excludes
the impact of items that cannot reasonably be expected to recur on
a quarterly basis or that are not attributable to our primary
operations. Adjusted earnings per diluted share as used by PPG in
this press release may be calculated differently from, and
therefore may not be directly comparable to, similarly titled
measures used by other companies.
Regulation G Reconciliation – Earnings
per Diluted Share
First Quarter 2023
Projection
Reported earnings per diluted share
$0.80 - $0.86
Pension settlement charge
0.61
Acquisition-related amortization
expense
0.13
Business restructuring-related costs,
net(a)
0.01
Insurance recovery of expenses incurred
due to a natural disaster(b)
(0.03)
Adjusted earnings per diluted share
$1.52 - $1.58
(a)
Included in business restructuring-related
costs, net are business restructuring charges, accelerated
depreciation of certain assets and other related costs, offset by
releases to previously approved programs.
(b)
The company incurred expenses due to
damages at a southern U.S. factory resulting from a hurricane in
2020. In the first quarter 2023, the company received reimbursement
under its insurance policies related to the damages incurred at
this factory due to this hurricane.
Forward-Looking Statements
Statements contained herein relating to matters that are not
historical facts are forward-looking statements reflecting PPG’s
current view with respect to future events and financial
performance. These matters within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, involve risks and
uncertainties that may affect PPG’s operations, as discussed in the
company’s filings with the Securities and Exchange Commission
pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and
the rules and regulations promulgated thereunder. Accordingly, many
factors could cause actual results to differ materially from the
forward-looking statements contained herein. Such factors include
statements related to the expected effects on our business of the
COVID-19 pandemic and the pace of recovery from the pandemic,
global economic conditions, increasing price and product
competition by our competitors, fluctuations in cost and
availability of raw materials, the ability to achieve selling price
increases, the ability to recover margins, customer inventory
levels, the ability to maintain favorable supplier relationships
and arrangements, the timing of realization of anticipated cost
savings from restructuring and other initiatives, the ability to
identify additional cost savings opportunities, the timing and
expected benefits of our acquisitions, difficulties in integrating
acquired businesses and achieving expected synergies therefrom,
economic and political conditions in international markets, the
ability to penetrate existing, developing and emerging foreign and
domestic markets, foreign exchange rates and fluctuations in such
rates, fluctuations in tax rates, the impact of future legislation,
the impact of environmental regulations, unexpected business
disruptions, the unpredictability of existing and possible future
litigation, including asbestos litigation, and governmental
investigations. However, it is not possible to predict or identify
all such factors. Consequently, while the list of factors presented
here and in our 2022 Annual Report on Form 10-K are considered
representative, no such list should be considered to be a complete
statement of all potential risks and uncertainties. Unlisted
factors may present significant additional obstacles to the
realization of forward-looking statements. Consequences of material
differences in results compared with those anticipated in the
forward-looking statements could include, among other things, lower
sales or earnings, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on PPG’s
consolidated financial condition, results of operations or
liquidity.
All information in this release speaks only as of April 3, 2023,
and any distribution of this release after that date is not
intended and will not be construed as updating or confirming such
information. PPG undertakes no obligation to update any
forward-looking statement, except as otherwise required by
applicable law.
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the
paints, coatings and specialty materials that our customers have
trusted for 140 years. Through dedication and creativity, we solve
our customers’ biggest challenges, collaborating closely to find
the right path forward. With headquarters in Pittsburgh, we operate
and innovate in more than 70 countries and reported net sales of
$17.7 billion in 2022. We serve customers in construction, consumer
products, industrial and transportation markets and aftermarkets.
To learn more, visit www.ppg.com.
The PPG Logo and We protect and beautify the world are
registered trademarks of PPG Industries Ohio, Inc.
CATEGORY Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20230403005343/en/
PPG Media Contact: Mark Silvey Corporate Communications
+1-412-434-3046 silvey@ppg.com PPG Investor Contact: John
Bruno Investor Relations +1-412-434-3466 jbruno@ppg.com
investor.ppg.com
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