PPG Industries Inc (PPG) Reports Record Q3 Net Sales and Raises Full-Year EPS Guidance
PPG Industries Inc (NYSE:PPG) reported record third quarter net sales of $4.6 billion, up 4% year over year (YOY).
Quarterly earnings per diluted share (EPS) stood at $1.79 with a record adjusted EPS of $2.07.
The company's year-to-date operating cash flow exceeded $1.5 billion, marking an increase of over $1.1 billion YOY.
PPG Industries Inc (NYSE:PPG) raises its full-year EPS guidance.
PPG Industries Inc (NYSE:PPG) released its third quarter 2023 financial results on October 18, 2023. The company reported record third quarter net sales of $4.6 billion, marking a 4% increase YOY. The net income for the quarter stood at $426 million, up 29% from the same period last year. The company's earnings per diluted share (EPS) was $1.79, with a record adjusted EPS of $2.07.
Performance Across Business Segments
PPG's strong performance was driven by its resilient business portfolio. The company's aerospace, automotive original equipment manufacturer (OEM), automotive refinish coatings, and PPG Comex businesses all reported record sales for the third quarter. The aggregate segment margin increased by 260 basis points over the same quarter last year, marking the fourth consecutive quarter of year-over-year margin improvement.
Financial Highlights
The company's year-to-date operating cash flow exceeded $1.5 billion, up more than $1.1 billion YOY. At the end of the quarter, PPG had cash and short-term investments totaling nearly $1.3 billion. The net debt was $4.9 billion, which is about $800 million lower compared to the prior-year third quarter.
CEO's Commentary
Tim Knavish, PPG chairman and chief executive officer, commented on the quarter: "I am proud of the PPG team for delivering outstanding results in a challenging global demand environment, including a slower-than-expected recovery in China. We achieved record third quarter net sales and adjusted earnings per share aided by the breadth and resiliency of our business portfolio."
Outlook
PPG is raising its adjusted EPS guidance for full-year 2023. The company anticipates soft global macroeconomic conditions to persist in the fourth quarter. However, it remains confident that its technology-advantaged products and strong brands will drive its outperformance versus the markets it supplies.
This article first appeared on GuruFocus.
