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PITTSBURGH - PPG Industries (NYSE:PPG) reported third-quarter earnings that topped analyst expectations, but shares slipped 0.7% as the company lowered its full-year outlook below Wall Street estimates.
The global paint and coatings manufacturer posted adjusted earnings per share of $2.13, exceeding the analyst consensus of $2.09, while revenue reached $4.08 billion, slightly above expectations of $4.04 billion. Third-quarter sales increased 1% year-over-year, with organic sales rising 2% due to higher volumes and prices.
Despite the quarterly beat, PPG reduced its full-year earnings guidance to $7.60-$7.70 per share, below the analyst consensus of $7.81, citing softening global demand and inventory management by customers in its automotive refinish business.
"PPG delivered an organic sales increase of 2%, including our third consecutive quarter of sales volume growth in a challenging macro environment," said Tim Knavish, PPG chairman and CEO. "This result reflects the benefits of PPG’s global breadth and the team’s strong commercial execution across our businesses, which is driving share gains."
The company reported particular strength in aerospace coatings, protective and marine coatings, and packaging coatings, all of which saw double-digit organic growth. Automotive OEM coatings outpaced global industry production by approximately 300 basis points, demonstrating market share gains.
PPG maintained its commitment to shareholder returns, deploying $1.2 billion toward share repurchases and dividends year-to-date, including approximately $150 million in share repurchases during the third quarter.
"Looking ahead, we expect to deliver organic growth in the fourth quarter despite the current macro environment," Knavish added. "However, global demand has softened compared to earlier this year and we expect some customer inventory management in automotive refinish coatings as we end the year."
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