Q2 2024 PPG Industries Inc Earnings Call Transcript
Key Points
- PPG Industries Inc (PPG) reported sales of $4.8 billion, marking their seventh consecutive quarter of year-over-year segment margin improvement.
- The company achieved an all-time record adjusted earnings per diluted share of $2.50, representing 11% year-over-year growth.
- Six out of ten business units delivered positive volume growth, driven by enterprise growth strategy initiatives.
- PPG Industries Inc (PPG) saw significant margin enhancement, with an aggregate gross margin of 43% for the quarter, a 180-basis-point improvement year over year.
- The company repurchased $150 million of PPG shares during the quarter, bringing the year-to-date total to about $300 million, and increased its dividend by $0.03 per share.
- Aggregate volumes in the quarter were flat year over year, falling short of initial expectations due to lower demand in Europe and global auto OEM production.
- European volumes, while improved sequentially, remained negative year over year.
- Automotive Refinish sales were down year over year, reflecting a strong prior-year comparison and lower insurance claims.
- General inflation, including higher year-over-year wages and employee benefits, partially offset the benefits from raw material deflation.
- The company lowered its full-year EPS guidance due to a softer-than-expected second half, driven by weaker volumes in auto OEM and architectural Europe.
Good morning. My name is Elliot, and I'll be your conference operator today. At this time, I would like to welcome everyone to the second-quarter PPG earnings conference call. (Operator Instructions)
So now I turn the conference over to Alex Lopez, Director of Investor Relations. Please go ahead, sir.
Thank you, Elliot. And good morning, everyone. This is Alex Lopez, Director, Investor Relations. We appreciate your continued interest in PPG and welcome you to our second-quarter 2024 financial results conference call. Joining me on the call from PPG are Tim Knavish, Chairman and Chief Executive Officer; and Vince Morales, Senior Vice President and Chief Financial Officer.
Our comments relate to the financial information released after US equity markets closed on Thursday, July 18, 2024. We have posted detailed commentary and accompanying presentation slides on the Investor Center of our website, ppg.com. These slides are also available on the webcast site for this call and provide additional
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