PPG Industries reported third-quarter 2024 net sales of $4.575 billion, a 1% decrease compared to the prior year, primarily due to foreign currency translation and business divestitures. Despite this, the company achieved a 10% increase in net income to $468 million and a 3% rise in adjusted earnings per diluted share to $2.13, marking its seventh consecutive quarter of adjusted EPS growth.
The Performance Coatings segment saw net sales increase by 1% to $2.921 billion, with segment income rising 13% to $513 million, resulting in a 17.6% operating margin. This growth was driven by strong performance in aerospace coatings, protective and marine coatings, and architectural coatings in the Americas and Asia Pacific.
Conversely, the Industrial Coatings segment experienced a 6% decline in net sales to $1.654 billion, with segment income decreasing 19% to $199 million, yielding a 12.0% operating margin. This was attributed to lower sales volumes and selling prices from index-based customer contracts, alongside weakening automotive OEM build rates and soft industrial production.
PPG repurchased approximately $200 million of stock during the third quarter, bringing the year-to-date total to $500 million, and increased its quarterly dividend by 5% in July. The company maintained its full-year 2024 adjusted EPS guidance, expecting it to be at the low end of the $8.15 to $8.30 range, anticipating continued strength in aerospace and architectural coatings Americas and Asia Pacific, while industrial production remains a headwind.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.