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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.
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.
Historical Earnings Impact
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