Core Viewpoint - PPG Industries Inc. has agreed to sell its silicas product business for approximately $310 million to QEMETICA S.A., with the transaction expected to close in Q4 2024, pending customary conditions [1][3]. Company Overview - PPG's silicas products business manufactures and distributes precipitated silica products globally, accounting for 1-2% of the company's overall net sales in 2023 [4]. - The business employs around 400 people and includes manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands [4]. Strategic Focus - The divestment is part of PPG's strategic assessment initiated in January 2024, allowing the company to concentrate on its technology-differentiated coatings and specialty products to enhance organic growth and shareholder value [3]. - Morgan Stanley & Co. LLC acted as PPG's financial advisor, while Hogan Lovells provided legal advice for the transaction [3]. Market Context - QEMETICA S.A. is a prominent chemical manufacturer in Central Europe, focusing on expanding its global presence through acquisitions and diversifying its portfolio [2]. - PPG's shares have decreased by 9.1% over the past year, compared to a 10.2% decline in its industry [6]. Financial Projections - PPG anticipates adjusted earnings per share (EPS) for Q3 to be between $2.10 and $2.20, and for the full year, the adjusted EPS is expected to range from $8.15 to $8.30 [7].

PPG Industries Inc. (PPG) has announced a collaboration with software firm Flashback Forward, Inc. to provide FinalQC, a mobile quality control application to improve efficiency in the collision repair sector. The partnership intends to transform the way collision shops operate by enhancing quality, efficiency and customer satisfaction. FinalQC enables collision and original equipment (OE)-certified collision shops to capture the full value of their repairs by detecting repair quality issues in real time. I ...

PPG Industries Inc. (PPG) has completed upgrades to boost the capacity of its Yen Phong industrial coatings factory in Bac Ninh province, Vietnam. The improvements include a new production line devoted to PPG AQUACRON waterborne decorative and functional coatings for consumer electronics, as well as cutting-edge testing equipment and automated spray booths. The expanded plant, which now has six manufacturing lines, seeks to minimize turnaround times, speed up coatings development and provide greater access ...

PPG Industries Inc. (PPG) recently launched PPG Primeron Optimal zinc epoxy powder primer. The patentpending solution contains an optimal amount of zinc, resulting in higher transfer efficiency than traditional zincrich primers and corrosion protection that fulfills strict ISO C5 corrosivity criteria for usage in high humidity and hostile conditions. With a specific gravity of 2.0 as opposed to 3.6 for typical zinc-rich primers, PPG Primeron Optimal primer is less dense and easier to apply. With an 85% tran ...

Six Months Ended June 30, 2023 26 Performance Coatings Offset by: ● Lower sales volumes (-2%) In the third quarter, we expect demand in Mexico to remain robust and consumer sentiment in Europe to be tepid. We anticipate continued strong demand in aerospace coatings and a benefit of summer seasonal sales in traffic solutions. Automotive refinish coatings sales are expected to benefit from incremental price increases and improved sales volume. Aggregate organic sales are anticipated to increase by a mid-singl ...

PPG Industries, Inc. (NYSE:PPG) Q2 2024 Earnings Conference Call July 19, 2024 8:00 AM ET Company Participants Alex Lopez - Director of IR Timothy Knavish - Chairman and CEO Vincent Morales - SVP and CFO Conference Call Participants John McNulty - BMO Duffy Fischer - Goldman Sachs Ghansham Panjabi - Baird Christopher Parkinson - Wolfe Research David Begleiter - Deutsche Bank John Roberts - Mizuho Stephen Byrne - Bank of America Merrill Lynch Vincent Andrews - Morgan Stanley Michael Sison - Wells Fargo Frank ...

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. ...