PPG paints record sales picture

PPG reported record 2023 Q1 net sales of $4.38 billion, 2% higher than the prior year’s first quarter net sales of approximately $4.31 billion.

Adjusted net income for the first quarter increased to $432 million compared to $327 million in the previous year’s Q1, an increase of 32%

[Read more: Brushing up: DIFM paint market.]

Tim Knavish, president and CEO of Pittsburgh-based PPG said, “the pace of our operating margin recovery accelerated during the quarter, which drove a 33% year-over-year increase in adjusted EPS.”

In the Performance Coatings segment for Q1, net sales increased to $2.63 billion, up 2% Y-O-Y, primarily due to higher selling prices in all businesses, which more than offset the impact of divestitures, the wind down of business in Russia, and unfavorable foreign currency transactions, said the firm. Segment income rose 24% from $319 million last year Q1 to $395 million this quarter.

The Industrial Coatings segment Q1 net sales rose to $1.75 billion, up 1%. Segment income increased to $240 million from $140 million last year, an increase of 71%. [Read how PPG ‘rolls’ worldwide.]

The Bottom Line: PPG sales moved ahead 2% for Q1 2023 and income rose 32%.

What the CEO said: “While the global demand environment generally remained consistent with our prior expectations, several businesses outperformed our original forecast and their respective markets. These include the aerospace coatings business and our Latin America region, each delivering record sales in the first quarter.

“In addition, our automotive original equipment manufacturer coatings business benefited from solid global production growth and remains well positioned. Finally, our latest customer win in the U.S. architectural business provided a higher load-in benefit than originally projected,” said Tim Knavish, president and CEO of PPG.

Company info: Click HERE to read the 2023 first quarter financial report from PPG.