PPG Industries Reports Mixed Q3 Results with Decreased Sales and Improved Profitability

PPG Industries, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance in net sales and profitability compared to the previous fiscal period.

For Q3 2024, PPG's net sales totaled $4,575 million, a decrease of 1.5% from $4,644 million in Q3 2023. For the nine months ended September 30, 2024, net sales were $13,680 million, down 1.6% from $13,896 million in the same period last year. The decline in sales was attributed to lower sales volumes and unfavorable foreign currency translation, partially offset by higher selling prices in certain segments.

Despite the decrease in sales, PPG's profitability improved. Income before income taxes for Q3 2024 was $611 million, an increase of $54 million compared to $557 million in Q3 2023. For the nine months ended September 30, 2024, income before income taxes rose to $1,842 million from $1,556 million in the prior year. Net income attributable to PPG for Q3 2024 was $468 million, up from $426 million in Q3 2023, while for the nine months, it increased to $1,396 million from $1,180 million.

Earnings per diluted share for Q3 2024 was $2.00, reflecting an 11.7% increase from $1.79 in the same period of 2023. For the nine months, earnings per diluted share rose to $5.93 from $4.97. Adjusted earnings per diluted share also saw growth, reaching $2.13 for Q3 2024, up from $2.07, and $6.49 for the nine months, compared to $6.15 in the previous year.

PPG's Performance Coatings segment reported net sales of $2,921 million for Q3 2024, a slight increase from $2,880 million in Q3 2023, driven by higher sales volumes and prices. In contrast, the Industrial Coatings segment experienced a decline, with net sales of $1,654 million, down from $1,764 million in the prior year, primarily due to weakened global demand, particularly in the automotive sector.

Strategically, PPG announced the sale of its architectural coatings business in the U.S. and Canada for approximately $550 million, expected to close in late 2024 or early 2025. Additionally, the company is undergoing a cost reduction program anticipated to yield annualized pre-tax savings of about $175 million, which will involve a net reduction of approximately 1,800 positions, primarily in Europe and the U.S. This restructuring is expected to incur a pre-tax charge of around $250 million in Q4 2024.

As of September 30, 2024, PPG's cash and cash equivalents stood at $1,251 million, down from $1,514 million at the end of 2023. The company also reported an increase in long-term debt to $6,138 million from $5,748 million at the end of the previous year.