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 ...

PPG Industries, Inc. (PPG) recently announced a $300-million investment in advanced manufacturing in North America to support the growing demand for paints and coatings in the automotive industry. This investment, beginning in 2024 and spanning four years, includes the construction of a new manufacturing plant in Loudon County, Tennessee. Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS) , sporting a Zacks Rank #1 (Strong Buy), ATI Inc. (ATI) and Ecolab Inc. ( ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2024, showing a slight decrease in net sales but a significant increase in net income attributable to PPG [Condensed Consolidated Statement of Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) For the three months ended March 31, 2024, PPG reported a 1.6% decrease in net sales to $4,311 million, while net income attributable to PPG significantly rose to $400 million due to the absence of a prior-year pension settlement charge Condensed Consolidated Statement of Income (Unaudited) | ($ in millions, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net sales** | **$4,311** | **$4,380** | | Cost of sales, exclusive of depreciation and amortization | 2,445 | 2,596 | | Selling, general and administrative | 1,064 | 992 | | Pension settlement charge | — | 190 | | **Income before income taxes** | **$538** | **$353** | | Income tax expense | 129 | 80 | | **Net income (attributable to PPG)** | **$400** | **$264** | | **Earnings per common share (attributable to PPG) - assuming dilution** | **$1.69** | **$1.11** | [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of March 31, 2024, PPG's total assets slightly increased to $21.87 billion, with total liabilities also marginally rising, while cash and cash equivalents decreased Condensed Consolidated Balance Sheet Highlights (Unaudited) | ($ in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,181 | $1,514 | | Receivables, net | 3,581 | 3,279 | | Inventories | 2,331 | 2,127 | | Goodwill | 6,140 | 6,200 | | **Total assets** | **$21,867** | **$21,647** | | **Liabilities and Shareholders' Equity** | | | | Total current liabilities | $4,943 | $5,054 | | Long-term debt | 5,940 | 5,748 | | **Total liabilities** | **$13,741** | **$13,624** | | **Total PPG shareholders' equity** | **$7,941** | **$7,832** | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash used for operating activities was $60 million in Q1 2024, a significant shift from the prior year's positive cash flow, primarily due to unfavorable working capital changes and increased investing activities Condensed Consolidated Statement of Cash Flows (Unaudited) | ($ in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Cash (used for)/from operating activities** | **($60)** | **$85** | | **Cash used for investing activities** | **($239)** | **($64)** | | **Cash (used for)/from financing activities** | **($35)** | **$277** | | Net (decrease)/increase in cash and cash equivalents | ($333) | $327 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail financial statement support, including no goodwill impairment, an additional €250 million term loan borrowing, the impact of the Q1 2023 pension settlement charge, and environmental reserves totaling $220 million - No indication of **goodwill impairment** was identified for any reporting units during the quarter ended March 31, 2024[30](index=30&type=chunk) - In January 2024, PPG borrowed an additional **€250 million** under its Term Loan credit agreement[36](index=36&type=chunk) - In March 2023, the company recognized a non-cash **Pension settlement charge of $190 million**, which was not repeated in 2024[50](index=50&type=chunk) Environmental Reserves | ($ in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | New Jersey Chrome | $50 | $53 | | Glass and chemical | 53 | 54 | | Other | 117 | 120 | | **Total environmental reserves** | **$220** | **$227** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 1.6% sales decrease due to lower volumes, an increase in adjusted EPS driven by moderating raw material costs, and strategic reviews for certain businesses - Net sales for Q1 2024 were **$4.3 billion**, a decrease of **1.6% YoY**, driven by a **2% decline in sales volumes**[118](index=118&type=chunk)[121](index=121&type=chunk) - Adjusted earnings per diluted share increased to **$1.86** from **$1.82** in the prior year, primarily due to moderating raw material costs offsetting lower sales volumes[125](index=125&type=chunk) - Cash used for operating activities was **$60 million**, a **$145 million decrease** from the prior year, mainly due to unfavorable working capital changes[145](index=145&type=chunk) - PPG announced strategic reviews for its architectural coatings U.S. and Canada business and its global silicas products business[158](index=158&type=chunk) [Performance of Reportable Business Segments](index=26&type=section&id=Performance%20of%20Reportable%20Business%20Segments) Both Performance Coatings and Industrial Coatings segments reported higher segment income despite sales challenges, benefiting from moderating raw material costs Performance Coatings Segment Results | ($ in millions) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $2,614 | $2,628 | (0.5)% | | Segment income | $402 | $395 | 1.8% | - Performance Coatings sales were impacted by lower volumes (**-3%**), particularly in architectural coatings in EMEA and the Americas, partially offset by higher prices (**+1%**) and favorable currency (**+1%**), with aerospace coatings sales increasing by a mid-single-digit percentage[132](index=132&type=chunk)[135](index=135&type=chunk) Industrial Coatings Segment Results | ($ in millions) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,697 | $1,752 | (3.1)% | | Segment income | $249 | $240 | 3.8% | - Industrial Coatings sales decreased due to lower selling prices (**-2%**) and lower volumes (**-1%**), with automotive OEM coatings sales decreasing by a low single-digit percentage and packaging coatings remaining flat[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) PPG ended Q1 2024 with **$1.2 billion** in cash, used **$60 million** in cash from operations due to working capital changes, and projects **$600 million** in capital spending for 2024, while maintaining compliance with debt covenants - Cash and short-term investments totaled **$1.2 billion** at March 31, 2024, down from **$1.6 billion** at year-end 2023[143](index=143&type=chunk) - Total capital spending for 2024 is projected to be approximately **$600 million**[149](index=149&type=chunk) - In January 2024, PPG borrowed an additional **€250 million** under its Term Loan[151](index=151&type=chunk) - As of March 31, 2024, the company's ratio of Total Indebtedness to Total Capitalization was **43%**, well below the **60%** covenant limit[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates and interest rates, using derivatives to hedge these exposures, with a hypothetical adverse change in exchange rates potentially reducing pre-tax income by **$409 million** - The company is exposed to foreign currency transaction and translation risk, where a hypothetical adverse change in exchange rates could reduce pretax income by **$409 million** as of March 31, 2024[172](index=172&type=chunk) - PPG manages interest rate risk by balancing fixed and variable rate debt, using interest rate swaps to convert **$375 million** of fixed-rate debt to variable-rate[175](index=175&type=chunk) - A **10% increase** in variable interest rates would increase annual interest expense by **$6 million** for the period ended March 31, 2024[175](index=175&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The Company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of the end of the reporting period[177](index=177&type=chunk) - No material changes to the Company's internal control over financial reporting occurred during the first quarter of 2024[178](index=178&type=chunk) [Part II. Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, other information, and exhibits filed with the report [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) PPG is involved in various lawsuits and claims, including environmental and asbestos-related matters, with a trial for a Clean Water Act civil penalty scheduled for June 2024 - PPG is involved in numerous lawsuits and claims related to contract, patent, environmental, product liability, and asbestos matters[180](index=180&type=chunk) - A trial regarding a civil penalty under the Clean Water Act for a former disposal site in Pennsylvania is scheduled for June 3, 2024[182](index=182&type=chunk) - The company continues to be a defendant in lawsuits alleging personal injury from asbestos exposure, as detailed in Note 13[183](index=183&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to those disclosed in the 2023 Annual Report on Form 10-K - No material changes in the Company's risk factors were reported compared to the 2023 Form 10-K[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, PPG repurchased **1,061,901 shares** at an average price of **$141.29** per share, and the Board authorized a new **$2.5 billion** share repurchase program on April 18, 2024 Issuer Purchases of Equity Securities (Q1 2024) | Month | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | — | $— | | February 2024 | — | $— | | March 2024 | 1,061,901 | $141.29 | | **Total Q1 2024** | **1,061,901** | **$141.29** | - On April 18, 2024, the Board of Directors authorized an additional **$2.5 billion** share repurchase program[186](index=186&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2024, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[187](index=187&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL data files - The report includes certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906[191](index=191&type=chunk) - The filing includes financial statements and notes formatted in Inline XBRL[193](index=193&type=chunk)

Financial Data and Key Metrics Changes - The company reported sales of $4.3 billion for Q1 2024, marking a solid performance despite a challenging macro environment, and achieved its sixth consecutive quarter of year-over-year segment margin increases [12] - Adjusted earnings per diluted share were $1.86, which is $0.02 above the midpoint of the previously provided range and the second-best Q1 adjusted EPS in the company's history [12] - Volumes were nearly flat year-over-year, continuing a positive volume trajectory over the last five quarters, with expectations for positive sales volumes in Q2 [13][18] Business Line Data and Key Metrics Changes - The Industrial segment margins improved by 100 basis points year-over-year, while Performance Coatings margins increased by about 40 basis points due to favorable pricing and moderating input costs [31] - The company experienced double-digit organic sales growth in China and India, with solid global organic sales growth in aerospace, specialty coatings, and protective and marine coatings businesses [13][55] Market Data and Key Metrics Changes - The company anticipates total selling prices to be slightly positive overall in 2024, with targeted structural selling price increases implemented in several Performance segment businesses [14] - The company expects mid-single-digit percentage raw material deflation in Q2 following high-single-digit percentage decreases in Q1, indicating a positive trend in input costs [56] Company Strategy and Development Direction - The company is focused on enterprise growth initiatives to drive higher sales volumes and improve operating margins, with a goal of transforming into a higher-growth, higher-margin company [33][20] - Strategic reviews of the architectural U.S. and Canada business and the global silicas product business are underway, with a target to communicate a path forward by Q3 [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering positive sales volumes in each remaining quarter of 2024, supported by growth in China and India, and a strong order backlog in aerospace [35][34] - The company noted that while global industrial production remains low, it expects overall second quarter sales volumes to be positive by a low single-digit percentage [18] Other Important Information - The company repurchased approximately $150 million of its stock in Q1 and increased its share buyback authorization by an additional $2.5 billion, bringing the total to approximately $3.4 billion [32] - The company is experiencing stable supply chains and customer order patterns, with most suppliers having sufficient or excess capacity [30] Q&A Session Summary Question: What underlies the confidence for earnings improvement in the back half of the year? - Management highlighted proven margin and cash performance, strong volume momentum, and expectations for positive volume growth for the rest of the year [38] Question: What portion of the business is expected to see real pricing moving forward? - Management indicated that pricing comparisons include a transitory unfavorable impact from European energy surcharges, but they expect to see structural pricing improvements [40] Question: How is the architectural U.S. business performing since the announcement of strategic reviews? - Management reported minimal disruption to the business and strong interest in the assets, with ongoing engagement with key customers [46] Question: What is the outlook for the U.S. architectural business profitability? - Management acknowledged that the business has been barely profitable and emphasized the need for velocity through stores, with ongoing investments to improve profitability [105] Question: How does the company view the impact of macroeconomic factors on volume growth? - Management noted that while Q1 was weaker than expected, they are seeing a better order book and shipments in early April, indicating potential for recovery [114]

First Quarter 2024 Financial Results April 18, 2024 Sixth consecutive quarter of YOY segment margin improvement +2% Share Repurchases ~$150MM Note: All changes versus same quarter last year. See Appendix for reconciliation of Adjusted EPS and Segment Margin. Segment Margin defined as total segment income as a percentage of net sales. 3 Organic sales down 2% YOY impacted by PY customer load-in and Easter timing Load In ( Operating Environment Heading Into 2Q 2024 Positives 5 Highlights • Architectural USCA 1 ...

PPG Investor Contact: Jonathan Edwards Investor Relations +1-412-434-3466 jonathanedwards@ppg.com investor.ppg.com PITTSBURGH, April 18, 2024 – PPG (NYSE:PPG) today reported financial results for the first quarter 2024. Tim Knavish, PPG chairman and chief executive officer, commented on the quarter: year improvement. 2024 is expected to be another year of excellent cash flow, and our balance sheet remains strong, including lower inventories year over year, providing us with ongoing shareholder value creatio ...