PPG Industries Inc PPG reported Q2 2023 net sales of $4.87 billion, beating the consensus of $4.84 billion.
The company witnessed organic sales growth of 4% Y/Y, aided by higher selling prices.
Net sales grew 4% Y/Y each in Performance Coatings and Industrial Coatings segments, led by higher selling prices in all businesses.
Segment margin expanded 330 basis points Y/Y in the quarter.
Adjusted EPS of $2.25 (+24% Y/Y) exceeded the consensus of $2.14.
Outlook: For Q3, PPG expects organic sales growth in the low single digits Y/Y and adjusted EPS of $1.85 – $1.95 (consensus: $1.87).
The company raised the adjusted EPS outlook to $7.28 -$7.48 (from $6.95-$7.25), vs consensus of $7.27.
"Looking ahead, we anticipate that the global macroeconomic environment will remain generally consistent with the second quarter including continued tepid global industrial production, along with some incremental slowing in U.S. architectural residential repaint due to significantly lower existing home sales. Given the strength and momentum we have experienced year to date in several of our businesses, such as aerospace coatings and automotive OEM coatings, we expect our diverse portfolio mix to provide us with continued resiliency. On a regional basis, we anticipate modest sequential demand improvement in China and aggregate European demand to stabilize, albeit at current lower absolute levels. In addition, our supply chain and raw material availability has returned to pre-pandemic levels, and in some instances there is excess supply," said Tim Knavish, president and CEO.
Dividend: PPG raised the dividend by 4.8% to $0.65, payable on September 12 to shareholders of record as on August 10.
Price Action: PPG shares closed lower by 0.36% at $149.72 on Thursday.
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