PPG Industries(PPG) - 2024 Q4 - Annual Results

Financial Performance - Net sales from continuing operations for Q4 2024 were $3.7 billion, a decrease of 5$15.8 billion, down 2% from the previous year, with adjusted EPS increasing by 6% to $7.87[24][27]. - Net sales for Q4 2024 were$3.729 billion, down from $3.912 billion in Q4 2023, while full year net sales decreased to$15.845 billion from $16.242 billion[41]. - Total net sales for the company decreased to$15,845 million in 2024, down 2.4% from $16,242 million in 2023[49]. - Net sales for the Industrial Coatings segment decreased to$6,687 million in 2024, down 5.7% from $7,089 million in 2023[49]. Earnings and EPS - Adjusted EPS for Q4 2024 was$1.61, reflecting a 3% increase compared to Q4 2023[3]. - Adjusted net income from continuing operations for the full year 2024 was $1.848 billion, with an EPS of$7.87, an increase from $1.762 billion and$7.42 EPS in 2023[40]. - Adjusted EPS for 2025 is projected to be in the range of $7.75 to$8.05, indicating a potential growth of 7%[30]. Cash Flow and Shareholder Returns - The company generated $1.4 billion in operating cash flow for the full year, returning$1.4 billion to shareholders through share repurchases and dividends[4]. - The company plans to deploy approximately $400 million toward share repurchases in Q1 2025[9]. - The company repurchased$750 million of stock in 2024, with approximately $2.8 billion remaining on its current share repurchase authorization[28]. - Cash from operating activities decreased to$1,420 million in 2024 from $2,411 million in 2023, a decline of 41$622 million in 2024, an increase from $598 million in 2023[46]. Operating Performance - Segment EBITDA margin improved to 18.1$594 million, slightly up from $606 million in Q4 2023, with a margin of 15.9$1,624 million, down from $1,584 million in 2023[44]. - The company reported a segment income of$562 million for the three months ended December 31, 2024, down from $580 million in the same period of 2023[49]. Costs and Expenses - Business restructuring-related costs for Q4 2024 amounted to$362 million, significantly higher than $16 million in Q4 2023[40]. - The company incurred business restructuring-related costs of$234 million in Q4 2024, compared to only $1 million in Q4 2023[45]. - The company incurred acquisition-related amortization expenses of$32 million in Q4 2024, compared to $44 million in Q4 2023[41]. - Research and development expenses were$106 million in Q4 2024, slightly down from $109 million in Q4 2023[45]. - Depreciation and amortization expenses totaled$102 million for Global Architectural, $142 million for Performance Coatings, and$207 million for Industrial Coatings segments[53]. Taxation - The effective tax rate on continuing operations for Q4 was 86%, with an adjusted effective tax rate of 22%[29]. - The effective tax rate for continuing operations in 2024 was 25.6%, compared to 25.3% in 2023[41]. - The adjusted effective tax rate for continuing operations, excluding certain items, was 22.9% for the full year 2024, compared to 22.2% in 2023[41]. Other Notable Items - PPG anticipates potential risks affecting future performance, including global economic conditions and competition, which may impact actual results compared to forward-looking statements[36]. - The company recognized a gain of $129 million from the sale of its silicas products business in Q4 2024[43]. - The company recorded accumulated foreign currency translation losses of$110 million related to its exit from Argentina operations in Q4 2024[43]. - An impairment charge of $146 million was recognized for remaining operations in Russia, classified as held for sale[54]. - Argentina's currency devaluation in December 2023 led to foreign currency translation losses included in other charges[54].