Financial Performance - The company reported sales of $4.8 billion for Q2 2024, achieving an adjusted earnings per diluted share of $2.50, marking an 11% year-over-year growth and an all-time record for the company [2][3][12] - The aggregate gross margin was 43%, reflecting a 180 basis point improvement year-over-year, with the Performance Coatings segment achieving a record segment margin of 18.7% [7][12] - Operating working capital decreased by 90 basis points year-over-year, returning to near pre-pandemic inventory levels [11][12] Business Unit Performance - Six out of ten business units experienced positive volume growth compared to the prior year, driven by new product initiatives and technologies [4][5] - The automotive refinish sales were down year-over-year due to a strong prior year comparison and lower insurance claims, but expectations for a strong second half of 2024 remain [6][12] - The Industrial Coatings segment improved its margin profile by 120 basis points year-over-year [7] Market Performance - Aggregate volumes were flat year-over-year, with demand in Europe and global auto OEM production falling short of expectations [5][6] - Volume performance in Mexico, China, and India was strong, contributing positively to overall results [5][12] - European volumes improved sequentially year-over-year, although still negative [5] Strategic Direction and Industry Competition - The company is conducting strategic reviews of its architectural coatings U.S. and Canada business and the global silicas product business, with good progress reported [10][12] - The company remains committed to deploying excess cash for shareholder value creation, including share repurchases and dividend increases [12] Management Commentary on Operating Environment and Future Outlook - Management acknowledged increasingly challenging macroeconomic conditions but noted top-line momentum and improved volume progression [3][5] - For Q3, the company expects overall organic sales to be flat to low-single-digit percentage growth, with specific expectations for growth in Mexico and China [13][15] - Management expressed confidence in the automotive refinish and protective coatings segments, anticipating modest sequential improvement in general industrial demand [14][15] Other Important Information - The company published its 2023 ESG report, highlighting progress against 2030 targets, including sales from sustainably advantaged products and reducing greenhouse gas emissions [9] - The company experienced mid-single-digit percentage raw material deflation, which is expected to normalize in the third quarter [8][17] Q&A Session Summary Question: Interest in U.S./Canada architectural review - Management noted a high level of interest in the architectural U.S./Canada business, with various scenarios being considered, including full sale and joint ventures [23][24] Question: Auto OEM performance - Management clarified that their projections for Q3 are based on specific assembly plant schedules, which have seen increased downtimes, impacting their performance [26][27] Question: Volume trends in Europe - Management indicated that volume trends in Europe were softer than expected, particularly in the Deco business, but noted improvements in Eastern Europe [30][34] Question: Aerospace business capacity - Management reported a strong backlog in the aerospace business, indicating that capacity constraints are limiting potential volume growth [123][124] Question: Pricing and inflation concerns - Management acknowledged higher wage and benefit inflation but expects it to trend towards normal levels in future years [96][100]

PPG Industries (PPG) came out with quarterly earnings of $2.50 per share, beating the Zacks Consensus Estimate of $2.48 per share. This compares to earnings of $2.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.81%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $1.86 per share when it actually produced earnings of $1.86, delivering no surprise. Over the last four quarters, the c ...

[Q2 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Consolidated%20Results) PPG reported record earnings for Q2 2024, achieving **$4.8 billion** in net sales with flat organic growth and continued shareholder returns Q2 2024 Key Financial Metrics | Metric | 2Q 2024 | 2Q 2023 | YOY Change | | :--- | :--- | :--- | :--- | | Net Sales | $4,794 million | $4,872 million | (2)% | | Net Income | $528 million | $490 million | +8% | | Adjusted Net Income | $590 million | $534 million | +10% | | Reported EPS | $2.24 | $2.06 | +9% | | Adjusted EPS | $2.50 | $2.25 | +11% | - Organic sales were **flat year-over-year**, with growth in aerospace, packaging, and architectural coatings in the Americas and Asia Pacific offset by declines in automotive refinish and softness in global automotive and industrial production[1](index=1&type=chunk)[54](index=54&type=chunk) - The company repurchased approximately **$150 million** in shares during the quarter, bringing the year-to-date total to **$300 million**[1](index=1&type=chunk)[17](index=17&type=chunk) - Segment margins improved by **110 basis points** year-over-year, marking the **seventh consecutive quarter** of margin expansion[1](index=1&type=chunk)[17](index=17&type=chunk) [Chairman and CEO Comments](index=1&type=section&id=Chairman%20and%20CEO%20Comments) The Chairman and CEO highlighted strong financial results and record earnings, noting consistent adjusted EPS growth and margin expansion amidst mixed regional performance and strategic reviews - Management reported the **sixth consecutive quarter** of year-over-year adjusted EPS growth and the **seventh** for segment margin improvement[16](index=16&type=chunk)[17](index=17&type=chunk) - Geographic performance was mixed: financial results benefited from established businesses in **Mexico** and **China**, but **European sales volumes** were unfavorable and below initial expectations[2](index=2&type=chunk)[39](index=39&type=chunk) - Strategic reviews for the **architectural coatings U.S. and Canada business** and the **global silicas business** are progressing on schedule[40](index=40&type=chunk) [Segment Performance](index=2&type=section&id=Second%20Quarter%202024%20Reportable%20Segment%20Financial%20Results) Total segment income increased in Q2 2024, with Performance Coatings achieving record margins despite flat sales, while Industrial Coatings saw income growth despite a sales decline [Performance Coatings Segment](index=2&type=section&id=Performance%20Coatings%20segment) The Performance Coatings segment reported flat net sales of **$3.0 billion** but a **6%** income increase to **$570 million**, achieving record **18.7%** margins Performance Coatings Q2 Results ($ million) | Metric | 2Q 2024 | 2Q 2023 | YOY Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,048 | $3,041 | 0% | | Segment Income | $570 | $537 | +6% | | Segment Income % | 18.7% | 17.7% | +100 bps | - Aerospace products sales remained strong, with **double-digit percentage** organic sales growth and an increased order backlog of approximately **$290 million**[41](index=41&type=chunk) - Architectural coatings organic sales grew by a **low single-digit percentage** in the Americas and Asia Pacific, supported by the professional contractor segment, with **Mexico** delivering record sales and earnings[5](index=5&type=chunk) - Automotive refinish coatings organic sales declined by a **mid-single-digit percentage** due to a challenging prior-year comparison and uneven U.S. distributor order patterns[5](index=5&type=chunk) [Industrial Coatings Segment](index=3&type=section&id=Industrial%20Coatings%20segment) Industrial Coatings segment net sales declined **5%** to **$1.7 billion**, yet segment income increased **4%** to **$259 million**, with margins improving by **110 basis points** Industrial Coatings Q2 Results ($ million) | Metric | 2Q 2024 | 2Q 2023 | YOY Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,746 | $1,831 | (5)% | | Segment Income | $259 | $250 | +4% | | Segment Income % | 14.8% | 13.7% | +110 bps | - Automotive OEM coatings organic sales decreased by a **high single-digit percentage** due to lower prices and industry volumes in the U.S. and Europe[21](index=21&type=chunk) - Packaging coatings organic sales grew by a **mid-single-digit percentage**, driven by higher sales volumes from market share gains[21](index=21&type=chunk) - Industrial coatings organic sales declined by a **low single-digit percentage** due to subdued industrial activity in the U.S. and Europe, which offset growth in China and India[21](index=21&type=chunk) [Financial Position and Cash Flow](index=3&type=section&id=Additional%20Financial%20Information) PPG's Q2 2024 financial position shows **$1.2 billion** in cash and **$5.2 billion** in net debt, with cash from operations for the first six months at **$305 million** - At quarter-end, the company had cash and short-term investments of **$1.2 billion** and net debt of **$5.2 billion**, down **$0.4 billion** year-over-year[44](index=44&type=chunk) Balance Sheet Highlights ($ million) | Account | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $1,131 | $1,514 | $1,228 | | Inventories | $2,299 | $2,127 | $2,506 | | Total current assets | $7,784 | $7,431 | $8,068 | | Total current liabilities | $5,225 | $5,054 | $5,416 | | Long-term debt | $5,765 | $5,748 | $6,099 | Six Months Ended Cash Flow Highlights ($ million) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash from operating activities | $305 | $621 | | Capital expenditures | $374 | $242 | | Dividends paid | $305 | $292 | [Outlook](index=2&type=section&id=Outlook) PPG projects flat to low single-digit organic sales growth for Q3 and FY2024, with adjusted EPS forecasts of **$2.10-$2.20** for Q3 and **$8.15-$8.30** for the full year 2024 Financial Projections | Outlook | 3Q 2024 | FY 2024 | | :--- | :--- | :--- | | Organic sales growth | Flat to up low single digits | Flat to up low single digits | | Adjusted EPS | $2.10 - $2.20 per share | $8.15 - $8.30 per share | - The company expects **modest sequential quarterly improvement** in general industrial demand and projects organic growth in automotive refinish and protective and marine coatings in Q3[3](index=3&type=chunk) - The effective tax rate for Q3 2024 is expected to be **23.5% to 24.5%**, higher than the prior year's adjusted rate of **19.5%** due to regional tax rate increases and a different mix of country-specific earnings[29](index=29&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 2024 and 2023, including the Statement of Income, Balance Sheet, Cash Flows, and Segment Information [Condensed Consolidated Statement of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20INCOME) [Condensed Consolidated Balance Sheet](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) [Condensed Consolidated Statement of Cash Flow](index=7&type=section&id=Cash%20from%20operating%20activities) [Segment Information](index=9&type=section&id=Segment%20Information) [Regulation G Reconciliation (Non-GAAP Measures)](index=5&type=section&id=Regulation%20G%20Reconciliation) This section reconciles Q2 2024 U.S. GAAP financial results to adjusted non-GAAP figures, detailing adjustments from reported net income of **$528 million** to **$590 million** Reconciliation of Reported to Adjusted Net Income and EPS (Q2) | ($ million, except per share) | 2024 $ | 2024 EPS | 2023 $ | 2023 EPS | | :--- | :--- | :--- | :--- | :--- | | **Reported Net Income** | **$528** | **$2.24** | **$490** | **$2.06** | | Acquisition-related amortization | $27 | $0.11 | $30 | $0.13 | | Business restructuring-related costs | $2 | $0.01 | $11 | $0.05 | | Portfolio optimization | $18 | $0.08 | $3 | $0.01 | | Legacy environmental remediation | $15 | $0.06 | — | — | | **Adjusted Net Income** | **$590** | **$2.50** | **$534** | **$2.25** | - Management believes these adjusted figures are useful for investors as they exclude items that are not expected to recur quarterly or are not part of primary operations[25](index=25&type=chunk)

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 18. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $4.92 billion, up 1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.07% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed t ...

Smart wearables equipped with PPG technology already measure these vital signs. In May 2019, Masimo received FDA clearance for its Tetherless Radius PPG sensors. These sensors enable the placement of point-ofcare monitors outside a patient's room, ensuring constant monitoring from a safe distance. The increasing prevalence of CVDs is expected to be a major factor propelling the growth of this market over the forecast period. According to the CDC, approximately 695,000 of the U.S. inhabitants die from CVDs. ...

Image Source: Zacks Investment Research The company is implementing a cost-cutting and restructuring strategy and optimizing its working capital requirements. The cost savings generated by these restructuring initiatives will act as a tailwind for the company. PPG Industries has undertaken extensive restructuring efforts to reduce its cost structure, primarily focusing on regions and end markets with weak business conditions. The company achieved $8 million of incremental cost savings in first-quarter 2024. ...

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in P ...

can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 102% in the past year. The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.56 per share, indicating a year-over-year rise of 25.9%. ECL, a Zacks Rank #2 stock, beat the consensus estimate in each o ...

Image Source: Zacks Investment Research PPG Industries Inc. (PPG) recently announced that the EDR Antwerp shipyard achieved a 40% reduction in overspray through the electrostatic application of PPG Sigmaglide 2390 fouling release coating. The project was carried out on the underwater hull of the RoRo passenger vessel Stena Transporter from Stena Line and is EDR's second successful electrostatic application project. Electrostatic application improves transfer efficiency compared with airless spraying, thereb ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric tha ...