PPG sales soar in Q3

Paint and coatings giant PPG reported that third quarter sales shot up by 19% to $4.4 billion compared to third quarter 2020 sales of $3.7 billion, a company record.

But profits fell by 22% as PPG posted a net income of $344 million compared to a net income of $442 million in the prior third quarter. The company’s net income exceeded Wall Street estimates, however.

PPG Chairman and CEO Michael McGarry noted that supply-chain disruptions worsened during the quarter as various commodity and component shortages restricted both its manufacturing output.

“While overall demand remained robust during the quarter, these increased disruptions prevented us from completely fulfilling our strong order books,” McGarry said.

Performance Coatings Segment sales, which includes DIY revenue, increased 23% to $2.8 billion for the period.

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The Bottom Line: PPG’s net income sags 22% to $344 million while sales jump 19% to $4.4 billion.

What the CEO said: “Looking ahead, while economic demand remains strong on an aggregate basis, we anticipate ongoing supply chain disruptions to persist throughout the fourth quarter, with potential further impacts from the recent industrial production curtailments in China,” McGarry said.

Company info: PPG’s full third quarter 2021 financial report can be read here.