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PPG
🇺🇸 NYSE:PPG
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Sep 30, 2022

PPG Q3 2022 Earnings Report

PPG announced an expected adjusted earnings per diluted share for Q3 2022 to be between 5% and 7% below the previously forecasted range due to softening demand in Europe and lower-than-expected recovery in China.

Key Takeaways

PPG expects Q3 2022 adjusted earnings per diluted share to be between 5% and 7% below the low end of the company's forecasted range. Sales were impacted by softening demand in Europe and lower-than-expected recovery in China. Softer demand conditions are expected to continue into the fourth quarter.

Third quarter adjusted earnings per diluted share expected to be between 5% and 7% below the low end of the company’s forecasted range.

Sales impacted by softening demand in Europe.

Sequential quarterly demand recovery was lower than expected in China due to a resumption of certain pandemic-related restrictions.

Softer demand conditions are expected to continue into the fourth quarter along with continued higher levels of unfavorable foreign currency translation impact.

Total Revenue
$4.47B
Previous year: $4.37B
+2.2%
EPS
$1.66
Previous year: $1.69
-1.8%
Gross Profit
$1.65B
Previous year: $1.64B
+0.5%
Cash and Equivalents
$1.03B
Previous year: $1.22B
-15.4%
Free Cash Flow
$408M
Previous year: $447M
-8.7%
Total Assets
$20.9B
Previous year: $21.9B
-4.6%

PPG

PPG

Forward Guidance

The company anticipates fourth quarter year-over-year segment earnings growth of near 20%, as year-over-year segment margin recovery momentum accelerates. The company is expecting selling prices to be up by between 10% and 12% compared to the prior-year fourth quarter, and up between 18% and 20% on a two-year stacked basis.

Positive Outlook

  • Anticipates fourth quarter year-over-year segment earnings growth of near 20%.
  • Year-over-year segment margin recovery momentum accelerates.
  • Expecting selling prices to be up by between 10% and 12% compared to the prior-year fourth quarter.
  • Selling prices up between 18% and 20% on a two-year stacked basis.
  • Raw material cost inflation remains at historically elevated levels but has begun to moderate in some regions.

Challenges Ahead

  • Softer demand conditions are expected to continue into the fourth quarter.
  • Continued higher levels of unfavorable foreign currency translation impact.
  • Third quarter adjusted earnings per diluted share expected to be between 5% and 7% below the low end of the company’s forecasted range.
  • Sales impacted by softening demand in Europe.
  • Sequential quarterly demand recovery was lower than expected in China due to a resumption of certain pandemic-related restrictions.

Company Overview

Full financial data and analysis

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