PPG Releases Second Quarter 2022 Financial Results

A record second-quarter net sales of $7 billion, an increase of about 8% from the same period last year

● Organic sales increased by 8%, driven by rising sales prices, up 15% in two years

● Diluted earnings per share from continuing operations were $86 and adjusted earnings per diluted share were $81

● Raw material costs climbed 20% year-on-year, while energy and transportation costs remained high

● Business segment operating margin improved by 200 basis points sequentially

● $135 million in share repurchase

PITTSBURGH--(BUSINESS WIRE)-- PPG (NYSE: PPG) today released its second quarter 2022 financial resul.

Message from the Chairman of the Board and Chief Executive Officer

Commenting on the financial results for the second quarter of 2022, Michael.

We achieved record sales for the seventh consecutive quarter, mainly due to our real-time inflation-based increases in sales prices, as well as recent acquisitions that have benefited .

Adjusted EPS remained in line with our 00 per share, although the longer-than-expected duration of China's virus control measures and foreign currency translation headwinds dragged down EPS by approximately 10 cents, offset by strong business mix and cost manageme.

Going forward, fundamental demand for PPG products is expected to remain stable in most major regions and end marke.

Finally, I would like to thank all of our employees for demonstrating our PPG success globally, creating value with customers around the world, and serving them every d.

Performance of each business unit in the first quarter of 2022

● Functional Coatings Business Unit

Second-quarter net sales in the Functional Coatings business segment increased, driven primarily by higher selling prices across the businesses and acquisition-related sal.

Revenue in this segment was lower than the prior year primarily due to higher raw material and logistics costs, unfavorable foreign currency translation effects, higher production costs and lower sales volumes, although these unfavorable factors were partially offset by higher selling prices and restructuring cost savin.

● Industrial Coatings Business Unit

Second-quarter net sales growth in the Industrial Coatings segment was primarily driven by higher selling prices and acquisition-related sales across businesses, partially offset by lower volumes due to the coronavirus outbreak in China and reduced industrial activity in Euro.

The revenue of this business segment was lower than the previous year, mainly due to the increase in raw material and energy costs, the impact of foreign currency translation, the increase in operating costs in China and the decrease in sales volume due to epidemic contr.

other financial information

● As of the end of the second quarter, the company had about $1 billion in cash and short-term investmen.

● Operating expenses for the second quarter were approximately $55 milli.

● About $30 million in cost savings from the acquisition's integration and business restructuring pl.

● The effective tax rate and adjusted effective tax rate for the second quarter were around 21% and 23%, respective.

Outlook

Based on current global economic activity, while taking into account the near-term economic uncertainty caused by European geopolitical issues and the ongoing pandemic, PPG has made the following forecasts for the third quarter of 2022:

● Cumulative sales were flat year-on-year or increased by a low single-digit percentage

● Operating expenses of $60-70 million

● Net interest expense of approximately $32-35 million

● Effective tax rate is about 23%

● Diluted earnings per share of $60-85

● Adjusted earnings per diluted share of $75-$00, excluding amortization charges of $13 and costs related to previously approved and disclosed business restructuring of $0