PPG Industries to Post Q4 Earnings: What's in the Offing?

Core Viewpoint - PPG Industries is expected to report its fourth-quarter 2024 results on January 30, with mixed performance indicators suggesting challenges due to weak demand, particularly in Europe, despite some benefits from acquisitions and cost-saving measures [1][2]. Financial Performance - The Zacks Consensus Estimate for PPG's sales in the upcoming quarter is $4,005.5 million, reflecting a decline of approximately 7.9$1,627.4 million, indicating a 6.2% decline year-over-year, while the Performance Coatings segment is expected to see a slight increase of 0.8% to $2,637.2 million [5]. Cost Management and Restructuring - PPG is actively pursuing a cost-cutting and restructuring strategy aimed at optimizing its global cost structure, with expected savings of around$35 million for the full year 2024 [6]. - The company has initiated a cost-cutting program projected to yield annualized pre-tax savings of approximately $175 million, with$60 million expected in 2025 [6]. Market Conditions and Demand - Weak global industrial production is anticipated to negatively impact demand in the Industrial Coatings unit, particularly due to lower automotive OEM build rates and softer industrial production in the U.S. and Europe [9][10]. - The ongoing crisis between Russia and Ukraine, along with low consumer confidence, is further affecting demand in Europe [9]. Earnings Prediction - PPG's Earnings ESP is currently at -0.65%, indicating a lower likelihood of an earnings beat this quarter, with the Most Accurate Estimate at $1.64 compared to the Zacks Consensus Estimate of$1.65 [12]. - The company holds a Zacks Rank of 4 (Sell), suggesting a challenging outlook for the upcoming earnings report [12].