Core Insights - PPG Industries Inc. has divested 100% of its architectural coatings business in the U.S. and Canada for $550 million to American Industrial Partners, while retaining its architectural coatings businesses in other global regions [1][2] - The divestment is part of PPG's strategy to optimize its portfolio, enhancing organic growth and financial returns, allowing for better resource allocation to areas of competitive advantage [2][3] - The architectural coatings business in the U.S. and Canada represented approximately $2 billion of PPG's total net sales in 2023, with a low single-digit EBITDA margin [3] Financial Performance - Excluding the divested architectural coatings business, PPG's overall sales volume performance would have increased by over 200 basis points on a pro forma basis over three years [3] - The Performance Coatings segment's operational income, excluding the U.S. and Canada architectural coatings EBIT, would have seen an approximate 300-basis point increase in segment margins for 2023 [3] - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15-$8.30 range for 2024 [6] Strategic Context - The transaction follows PPG's strategic review of alternatives for the architectural coatings business, initially announced on February 26, 2024 [4] - Goldman Sachs & Co. LLC acted as the sole financial advisor for PPG, with Hogan Lovells U.S. LLP serving as the legal advisor [4] Market Performance - PPG's shares have declined by 12% over the past year, compared to an 8.1% decline in the industry [5] - PPG currently holds a Zacks Rank of 4 (Sell), while other companies in the basic materials sector, such as Carpenter Technology Corporation, DuPont de Nemours, Inc., and CF Industries Inc., have better rankings [7]

Group 1: Company Developments - PPG Industries Inc. has received its 50th order for the electrostatic application of marine fouling control coatings, specifically for the VLCC SIDR oil tanker [1] - The PPG NEXEON 810 antifouling coating will be applied at the Asyad Drydock Company shipyard in Oman [1] - PPG has tailored its hull coatings for electrostatic application, which has been introduced to the shipping sector over the past year [2] Group 2: Industry Trends - Ship owners and shipyards are seeking new methods to comply with stricter environmental standards and sustainability goals, including low-friction hull coatings [3] - Electrostatic applications are gaining traction among significant shipping companies and shipyards in Europe, Singapore, and China [3] - Traditional fouling control coatings are often not suitable for electrostatic applications, but PPG's formulations enable this method [4] Group 3: Operational Efficiency - Electrostatic application offers higher transfer efficiency than airless spraying, resulting in reduced overspray and waste, leading to environmental benefits [2] - The process provides a cleaner operation and better work environment for applicators, saving time and money for shipyards [5] Group 4: Financial Performance - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full-year 2024 [7] - PPG's shares have declined by 11.5% over the past year, compared to a 7.9% decline in the industry [6]

Core Viewpoint - PPG Industries Inc. has completed the divestment of its silicas products business to QEMETICA for approximately $310 million in pre-tax proceeds, marking a strategic shift for the company [1][4]. Group 1: Divestment Details - The silicas products division accounted for 1-2% of PPG's overall net sales in 2023, indicating its relatively small contribution to the company's total revenue [2]. - The divestment includes manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands, along with leased operations in Barberton, OH, and Monroeville, PA [2]. Group 2: QEMETICA Overview - QEMETICA is a leading European chemical manufacturer with a focus on expanding its global presence through strategic acquisitions and diversifying its portfolio [3]. - The company aims to blend modern business practices with a commitment to long-term development [3]. Group 3: Financial Performance and Outlook - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full year 2024 [6]. - PPG's shares have declined by 8.4% over the past year, slightly better than the industry's decline of 8.5% [5].

Partnership and Market Expansion - PPG Industries Inc has partnered with SARO/Siccardi, Italy's largest distributor of powder coatings, to strengthen its distribution network in Italy and enhance customer access to high-quality products and services [1] - The collaboration leverages PPG's global leadership in powder coating technology and SARO/Siccardi's market expertise and strong regional presence to provide superior product protection and an efficient purchasing experience for customers [2] - The partnership will enable closer collaboration with customers, offering specialized solutions, technical support, competitive pricing, and faster access to PPG's advanced powder coating technology through SARO/Siccardi's extensive distribution network [3] Strategic Focus on Powder Coatings - Since 2019, PPG has prioritized expanding its powder coating business through strategic alliances, acquisitions, R&D investments, and capacity enhancements to meet the growing demand for sustainable manufacturing solutions [4] - Powder coatings, which are solvent-free and emit no VOCs, align with PPG's goal of deriving 50% of sales from environmentally advantageous products and processes by 2030 [4] Financial Performance and Outlook - PPG's shares have declined 11.3% over the past year, underperforming the industry's 10.3% decline during the same period [5] - The company anticipates flat organic sales and adjusted earnings per share in the range of $8.15 to $8.30 for full-year 2024 [6] Industry Comparison and Stock Performance - Carpenter Technology Corporation (CRS) has outperformed with a 157.2% share price increase over the past year and an average earnings surprise of 14.1% in the last four quarters [8] - IAMGOLD Corporation (IAG) has seen a 112% share price rally and a 522.2% year-over-year earnings growth estimate, with an average earnings surprise of 203.4% in the last four quarters [9] - CF Industries Inc (CF) has rallied 13.1% over the past year, with an average earnings surprise of 10.3% in the last four quarters [10]

Core Viewpoint - PPG Industries reported mixed financial results for Q3 2024, with earnings per share increasing but revenues missing estimates, leading to a downward trend in stock performance and estimates [2][3][8]. Financial Performance - The company reported a profit of $468 million or $2 per share for Q3 2024, an increase from $426 million or $1.79 per share in the same quarter last year [2]. - Adjusted earnings per share rose to $2.13 from $2.07 year-over-year, but fell short of the Zacks Consensus Estimate of $2.15 [2]. - Revenues for the quarter were approximately $4.57 billion, down about 1.5% year-over-year, missing the Zacks Consensus Estimate of $4.65 billion [3]. Segment Review - The Performance Coatings segment saw revenues increase by 1.4% year-over-year to around $2.92 billion, driven by higher sales volumes and prices, with segment income climbing 13% [4]. - Conversely, the Industrial Coatings segment experienced a 6.2% decline in revenues to roughly $1.65 billion, attributed to lower sales volumes and selling prices, resulting in a 19% drop in segment income [5]. Financial Position - At the end of Q3, PPG Industries had approximately $1.25 billion in cash and cash equivalents, reflecting a 2.7% year-over-year increase [6]. - Long-term debt rose to around $6.14 billion, up from $5.6 billion in the prior-year quarter [6]. Outlook - The company anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full year 2024 [7]. - There has been a downward trend in fresh estimates for the stock over the past month, indicating a negative outlook [8]. Investment Scores - PPG Industries currently holds a Growth Score of B but has a low Momentum Score of D, with an overall VGM Score of B, placing it in the middle 20% for investment strategies [9]. - The stock has a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [9].

Core Insights - American Industrial Partners (AIP) has entered into a definitive agreement to acquire PPG's architectural coatings business in the U.S. and Canada, which generated approximately $2 billion in revenue in 2023 [1][2] - The transaction is expected to close in late 2024 or early 2025, pending customary closing conditions [1] - AIP aims to leverage its operational expertise and customer focus to enhance the architectural coatings business and expand into new markets [3] Company Overview - PPG's architectural coatings business is a leading producer of various paint and coating products, including interior and exterior paints, stains, and adhesives, with a strong market presence and iconic brands such as GLIDDEN® and DULUX® [2] - The business employs over 6,000 individuals across its U.S. and Canadian facilities, which include 750 company-owned stores [2] - AIP manages approximately $16 billion in assets and focuses on industrial businesses across diverse markets, aiming to generate differentiated returns through strategic investments [4]

PPG Industries, Inc. (PPG) reported a third-quarter 2024 profit of $468 million or $2 per share, up from $426 million or $1.79 per share in the year-ago quarter. In the reported quarter, excluding one-time items, adjusted earnings per share increased to $2.13 from $2.07 in the year-ago quarter, missing the Zacks Consensus Estimate of $2.15. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. The company's revenues were $4,575 million in the quarter, down roughly 1.5% year over year. The ...

Core Insights - PPG Industries reported revenue of $4.58 billion for Q3 2024, a year-over-year decline of 1.5%, with an EPS of $2.13 compared to $2.07 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $4.65 billion, resulting in a surprise of -1.67%, while the EPS also missed the consensus estimate of $2.15 by -0.93% [1] Financial Performance Metrics - Net Sales for Industrial Coatings were $1.65 billion, below the estimated $1.69 billion, reflecting a year-over-year decline of 6.2% [3] - Net Sales for Performance Coatings reached $2.92 billion, slightly below the estimated $2.96 billion, with a year-over-year increase of 1.4% [3] - Segment Income for Industrial Coatings was reported at $199 million, significantly lower than the estimated $245.41 million [3] - Segment Income for Performance Coatings was $513 million, exceeding the average estimate of $488.82 million [3] Stock Performance - PPG Industries' shares have returned +1.9% over the past month, compared to the Zacks S&P 500 composite's +3.5% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

PPG Industries Inc. (PPG) is set to release third-quarter 2024 results after the closing bell on Oct. 16. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. PPG Industries beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while delivering in-line results on the other occasion. It has a trailing four-quarter earnings surprise of around 2.2%, on average. The paint giant is expected to have benefited from acquisitions, pricing actions and restructuring ...

PPG Industries Inc. (PPG) recently announced that its SEM Products business has launched a full line of performance abrasives aimed at simplifying complex automobile collision repairs while emphasizing technicians' demands. SEM Performance Abrasives are specifically tailored for each stage of the repair procedure. The product line includes precision grain technology, which is intended to provide rapid cutting, longevity and consistency across a wide range of repairs and substrates. SEM abrasives offer high ...