PPG Projects Strong Third Quarter Financial Results
PPG (NYSE:PPG) today announced that its third quarter 2020 adjusted earnings per diluted share is expected to be between $1.90 and $1.94. This compares to adjusted earnings per diluted share of $1.67 in the third quarter of 2019. In addition, the company now anticipates that sales volumes versus the third quarter 2019 will be down about 5%, which is below the lower-end of the previously communicated guidance range of down 6% to 11%. These results include strong year-over-year sales volume growth in PPG’s global architectural coatings businesses.
The better than expected quarterly financial results were driven by improving demand in several end-use markets resulting in higher sales volumes, coupled with continued, aggressive cost management actions. These factors are generating higher year-over-year operating margins within both of PPG’s reportable business segments.
“Led by improving demand trends and our ability to outperform in several end-use markets, we anticipate delivering record third quarter operating results,” said Michael H. McGarry, PPG chairman and chief executive officer. “We expect to achieve high-teen percentage operating margins in both reporting segments for the quarter, reflecting improving sales volumes and continued execution of our cost management initiatives. We are continuing to deliver strong performance in our aggregated global architectural coatings and packaging coatings businesses, which is now being coupled with strengthening demand for our automotive original equipment manufacturer and general industrial coatings. These businesses collectively represent about 70% of our business portfolio. In the remainder of our businesses, demand trends continue to be mixed due to impacts from the pandemic. We expect incremental earnings growth in these businesses as recovery trends strengthen in the markets they serve.”
“I continue to be impressed by the global PPG team, and I want to thank our employees across the world for their strong execution and their ability to continue partnering with our customers during these challenging times,” McGarry concluded.
The company is scheduled to release third quarter 2020 financial results on October 19, 2020 after U.S. stock markets close, and will hold an earnings teleconference on October 20, 2020 at 8 a.m. ET. At that time, the company will provide a more comprehensive update on the third quarter financial performance and provide updates on expectations for the fourth quarter.