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PITTSBURGH - PPG Industries (NYSE:PPG) reported second quarter adjusted earnings that met analyst expectations as organic sales growth offset the impact of business divestitures, while the company maintained its full-year outlook despite a challenging economic environment.
The global paints and coatings manufacturer posted adjusted earnings per share of $2.22 for the second quarter, slightly below the analyst estimate of $2.23. Revenue came in at $4.2 billion, exceeding the consensus estimate of $4.16 billion but down 1% YoY, primarily due to business divestitures.
Organic sales increased 2% YoY, driven by equal contributions from higher sales volumes and prices. The Performance Coatings segment achieved record quarterly sales and earnings with a 6% increase in organic sales.
"I am pleased with our growth momentum as we delivered 2% organic sales growth with equal contributions from sales volumes and selling prices," said Tim Knavish, PPG (WA:IBSP) chairman and chief executive officer. "This organic growth reflects the benefits of PPG’s strong product portfolio and our commercial execution across our global business in an increasingly dynamic macro environment."
The company reaffirmed its full-year adjusted earnings guidance of $7.75 to $8.05 per share, compared to the analyst consensus of $7.86.
Segment results were mixed, with Performance Coatings delivering record quarterly sales and earnings, while the Global Architectural Coatings segment saw a 5% decline in net sales. Industrial Coatings segment sales fell 5% due primarily to business divestitures.
PPG repurchased approximately $150 million of shares during the quarter and $540 million year to date, demonstrating confidence in its financial position despite economic challenges.
Looking ahead, Knavish expressed optimism about accelerating volume growth momentum in the second half of the year, driven by share gains in the Industrial Coatings segment and continued organic growth across most businesses in the Performance Coatings segment.
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