PPG Industries(PPG)
Search documents
PPG Industries(PPG) - 2022 Q3 - Earnings Call Presentation
2022-10-20 12:08
PPG employees transform 36 schools worldwide in July and August PPG INNOVEL® PRO coating launches Investment to double powder coatings capacity in San Juan del Rio Third Quarter 2022 Financial Results Michael H. McGarry, Chairman and CEO Tim M. Knavish, COO Vince J. Morales, CFO John Bruno, VP Investor Relations We protect and beautify the world® All content within is proprietary to PPG. Information current as of October 19, 2022. This presentation contains forward-looking statements that reflect the Compan ...
PPG Industries(PPG) - 2022 Q2 - Quarterly Report
2022-07-22 19:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2022 WASHINGTON, D.C. 20549 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ ––––––––––––––––––––––––––––––––––––––––––––––––– FORM 10-Q ––––––––––––––––––––––––––––––––––––––––––––––––– Commission file number 1-1687 –––––––––––––––––––– ...
PPG Industries(PPG) - 2022 Q2 - Earnings Call Transcript
2022-07-22 13:18
Financial Data and Key Metrics Changes - The company reported record net sales of $4.7 billion for Q2 2022, with adjusted earnings per diluted share from continuing operations at $1.81 [8][9] - Selling prices increased by approximately 12% year-over-year, marking the 21st consecutive quarter of higher selling prices [15][29] - Adjusted earnings performance was toward the upper end of the April financial guidance, despite negative impacts from foreign currency translation [14][30] Business Line Data and Key Metrics Changes - The global automotive refinish, traffic solutions, and U.S. packaging coatings businesses each set all-time quarterly sales records in Q2 [12][19] - The Traffic Solutions business achieved 15% sales growth in Q2, benefiting from anticipated increased infrastructure spending [19] - The aerospace business saw improvements in domestic travel leading to higher aftermarket demand, with expectations for further growth [13] Market Data and Key Metrics Changes - Consumer demand in Europe softened, and COVID-related disruptions in China were longer than anticipated, negatively impacting sales [10][25] - The company expects strong sequential growth in Asia due to higher industrial production compared to Q2, which was heavily impacted by COVID restrictions [25] - Economic conditions in Europe are expected to remain soft, with double-digit declines projected in certain markets [26][43] Company Strategy and Development Direction - The company is focused on cost mitigation initiatives in Europe due to slower demand and has contingency plans for a broader economic slowdown [18][23] - PPG is advancing its sustainability strategy, committing to near-term company-wide emission reductions in line with climate science [24] - The company plans to continue cash deployment in the most accretive manner for shareholders, including stock buybacks and debt reduction [22][74] Management's Comments on Operating Environment and Future Outlook - Management remains confident about future earnings capabilities, citing strong underlying demand for PPG products in most major regions [25][31] - The company anticipates that supply chain conditions will continue to improve, with better raw material and transportation availability [27][28] - Management expects sequential quarterly momentum on operating margin improvement to continue, despite significant unfavorable currency impacts [30][31] Other Important Information - The company repurchased $135 million of its stock during the quarter at attractive prices [22] - Corporate governance was enhanced with the necessary shareholder vote threshold for Board declassification and elimination of supermajority voting requirements [23] - The company is closely monitoring the COVID situation in China, expecting minimal impact on sales and operations from any further restrictions [25] Q&A Session Summary Question: Has the path to $9 of EPS in 2023 been pushed out due to the current economic backdrop? - Management acknowledged challenges but remains confident in the outlook due to strong demand in refinish and aerospace sectors, along with synergies and cash deployment options [36] Question: How do you view the current business cycle in a continued slowdown scenario, especially in Europe? - Management noted that full employment in the U.S. may sustain consumer spending, while they are less worried about gas rationing in Europe due to the importance of the automotive and chemical businesses [40][41] Question: Can you comment on the current raw material supply situation in Europe? - Management indicated that raw material supply is improving, with some rotation of raw materials from China to Europe anticipated [42] Question: What are the key highlights regarding margin outlook and pricing? - Management expects significant improvements in margins due to better manufacturing schedules and improved pricing dynamics, with a focus on maintaining pricing despite raw material declines [46][50] Question: How do you expect the European DIY market to perform in a recession? - Management reported a double-digit decline in DIY volumes in Europe, with expectations for continued weakness, while trade volumes remain stronger [67][68] Question: What is the outlook for M&A activity? - Management stated that the M&A pipeline remains steady, with ongoing evaluations of portfolio options, including potential acquisitions and divestitures [73][74] Question: How is the company managing raw material inventories and sourcing? - Management is being conservative with inventories in Europe while also planning to destock as raw material availability improves [78] Question: How resilient is the current portfolio in a potential recession? - Management believes the company has built a more resilient portfolio, with strong demand in traffic solutions and a significant deficit in automotive and aerospace sectors [95][99]
PPG Industries(PPG) - 2022 Q2 - Earnings Call Presentation
2022-07-22 11:52
Second Quarter 2022 Financial Results Michael H. McGarry, Chairman and CEO Tim M. Knavish, COO Vince J. Morales, CFO John Bruno, VP Investor Relations We protect and beautify the world® All content within is proprietary to PPG. Information current as of July 21, 2022. This presentation contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to ...
PPG Industries(PPG) - 2022 Q1 - Earnings Call Transcript
2022-04-22 16:08
Financial Data and Key Metrics Changes - The company reported record net sales of $4.3 billion for Q1 2022, with adjusted earnings per diluted share from continuing operations at $1.37, significantly above the upper end of January guidance [18][21][29] - Selling prices increased by 10% year-over-year, marking the 20th consecutive quarter of higher selling prices, with a 12% increase on a 2-year stack basis compared to Q1 2020 [22][25] - The company experienced a sequential margin improvement of over 200 basis points compared to Q4 2021, with expectations for continued improvement in Q2 [25][26] Business Line Data and Key Metrics Changes - The automotive refinish business saw strong sales volumes in the U.S. and Europe, contributing positively to overall performance [20] - The aerospace business benefited from year-over-year improvements, with expectations for further industry demand growth as it remains below pre-pandemic levels [20] - The Traffic Solutions business achieved over 10% sales growth, with record sales in Q1 and a large order backlog entering Q2 [23][80] Market Data and Key Metrics Changes - Sales in Latin America reached a record high during the quarter, driven by strong demand [19] - The company noted that DIY sales in Europe were a concern, while the Pro Painter backlog remained strong [45][46] - The company is optimistic about recovery in the automotive market, particularly in Europe, as consumers shift towards electric vehicles [43] Company Strategy and Development Direction - The company is focusing on real-time pricing strategies to combat inflation, with plans to implement further price increases in Q2 [26][33] - The acquisition of Arsonsisi's Powder Coatings business aligns with the company's strategy to grow its powder coatings manufacturing capabilities [29] - The company is committed to advancing its ESG program, having issued its inaugural DE&I report [30] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing uncertainties due to the Ukraine-Russia crisis and COVID-19 restrictions in China, which have impacted regional demand [14][31] - Despite these challenges, the company expects to see improvements in supply chain disruptions and inventory rebuilding as the year progresses [34] - The management remains confident in achieving earnings catalysts and returning to prior peak operating margins [34][35] Other Important Information - The company recorded a pre-tax charge of $290 million for impairment of assets related to its Russian operations, which represented approximately 1% of total net sales for 2021 [12] - The company is experiencing raw material shortages, with an overall sales backlog growing to about $180 million [27] Q&A Session Summary Question: Can you provide an update on inflation outlooks and input shortages? - Management noted that input shortages remain consistent, with improvements in reliability in Europe and Asia, and a decrease in force majeures from over 100 to about 50 [38] Question: What is the demand and supply chain situation in Europe and China? - Management indicated that the automotive situation in China is being impacted but is expected to recover, while DIY sales in Europe are a concern [43][46] Question: Are there any competitive pricing pressures in the U.S. architectural market? - Management stated that they have not seen discounting in the market and are successfully implementing price increases [52] Question: How is the relationship with Home Depot progressing? - The company has stocked 60% of Home Depot stores and expects to ramp up availability as supply improves [60][62] Question: What are the expectations for EPS in 2023? - Management remains confident in achieving EPS greater than $9, supported by improving market conditions and pricing strategies [72] Question: How is the automotive OEM business performing? - Management reported improvements in operational efficiencies and noted strong demand for electric vehicle applications [100]
PPG Industries(PPG) - 2022 Q1 - Quarterly Report
2022-04-22 14:01
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ––––––––––––––––––––––––––––––––––––––––––––––––– FORM 10-Q ––––––––––––––––––––––––––––––––––––––––––––––––– ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 1-1687 ––––––––––––––––––– ...
PPG Industries(PPG) - 2021 Q4 - Annual Report
2022-02-17 16:55
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 1-1687 PPG INDUSTRIES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...
PPG Industries(PPG) - 2021 Q4 - Earnings Call Presentation
2022-01-27 20:46
Fourth Quarter 2021 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President, Investor Relations We protect and beautify the world™ All content within is proprietary to PPG. Information current as of January 20, 2022. This presentation contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. You can identify forward-lo ...
PPG Industries(PPG) - 2021 Q4 - Earnings Call Transcript
2022-01-21 16:31
PPG Industries, Inc. (NYSE:PPG) Q4 2021 Earnings Conference Call January 21, 2022 8:00 AM ET Company Participants John Bruno - Vice President, Investor Relations Michael McGarry - Chairman & Chief Executive Officer Vincent Morales - Senior Vice President & Chief Financial Officer Conference Call Participants David Begleiter - Deutsche Bank Robert Koort - Goldman Sachs Chris Parkinson - Mizuho Ghansham Panjabi - Robert W. Baird John Roberts - UBS Michael Sison - Wells Fargo John McNulty - BMO Capital Ma ...
PPG Industries(PPG) - 2021 Q3 - Quarterly Report
2021-10-21 21:11
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ––––––––––––––––––––––––––––––––––––––––––––––––– FORM 10-Q ––––––––––––––––––––––––––––––––––––––––––––––––– ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 1-1687 ––––––––––––––– ...