PPG reports record sales
PPG reported record first quarter 2022 net sales of $4.3 billion, about 11% higher than prior year’s same quarter of approximately $3.9 billion.
Michael H. McGarry, chairman and CEO of Pittsburgh-based PPG said, “we delivered record sales during the quarter despite ongoing supply chain disruptions along with the initial impacts of geopolitical issues in Europe and increasing COVID-19 restrictions in China.”
In the Performance Coatings segment, net sales increased to $2.6 billion, or 11% Y-O-Y, primarily due to selling price increases across all businesses and acquisition-related sales.
The Industrial Coatings segment net sales increased to $1.7 billion, also 11%, primarily due to selling price increases across all businesses and acquisition-related sales, partially offset by lower sales volumes in comparison to strong, pandemic-related volume recovery in the prior year.
On a two-year stacked basis, the company said its selling prices are up about 12% over the first quarter 2020, “as we continue to manage through persistent and broad inflation. Sales also benefited from our recent acquisitions, as paint manufacturing company Tikkurila and traffic solutions both delivered strong performances,” said the CEO.
In addition to further selling price capture, PPG reported, adjusted earnings exceeded its January guidance as it delivered excellent earnings leverage on higher-than-expected sales volumes.
The leverage benefits were aided by sequential quarterly improvements in manufacturing performance, including the benefit of more consistent raw material availability, said the firm.
The Bottom Line: PPG sales moved ahead 11% for Q1 2022 to $4.3 billion.
What the CEO said: “We once again finished the quarter with a much larger than normal order backlog, totaling about $180 million, primarily in automotive refinish and aerospace coatings, and we expect further volume growth in these businesses in the coming quarters,” said Michael H. McGarry, PPG chairman and CEO.
Company info: Click HERE to read the Q1 2022 financial report from PPG.