Q3 2024 PPG Industries Inc Earnings Call Transcript
Key Points
- PPG Industries Inc (PPG) reported record third-quarter adjusted earnings per diluted share of $2.13, marking an 8th consecutive quarter of year-over-year segment margin improvement.
- The company achieved sales of $4.6 billion, with 7 out of 10 businesses delivering organic growth, and the architectural coatings business in Europe showing a positive trend by stabilizing sales.
- PPG's aerospace coatings business delivered record quarterly sales, driven by double-digit percentage organic sales growth, and maintained a strong order backlog of approximately $290 million.
- The company completed $200 million in share repurchases and paid $160 million in dividends during the quarter, returning approximately $1 billion to shareholders year-to-date.
- PPG announced strategic divestitures, including the sale of its silicas products business and the architectural coatings US and Canada business, optimizing its portfolio for improved growth and margin profiles.
- The global auto OEM and industrial production sectors faced challenges, negatively impacting demand in PPG's industrial coatings segment.
- Unscheduled prolonged downtime in the automotive OEM industry, particularly in the US and Europe, led to a rapid decline in industry production, affecting PPG's top line.
- Despite efforts to mitigate costs, PPG was unable to fully offset the earnings impact from the decline in automotive OEM production late in the quarter.
- General industrial activity in the US and Europe remained lackluster, contributing to a mid-single-digit percentage decline in organic sales for PPG's industrial coatings business.
- The company anticipates some stranded costs from the divestitures, requiring a comprehensive restructuring program to eliminate these costs and rationalize its footprint, particularly in Europe.
Good morning. My name is Elliot. I'll be your conference operator today. This time, I would like to welcome everyone to our third quarter of PPG earnings conference call. (Operator Instructions) Thank you. I would now like to turn the call 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 third-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 at the US equity markets close on Wednesday, October 16, 2024. We have posted detailed commentary and accompanying presentation slides on the Investor Center of our website, ppg.com. The slides are also available on the webcast site for this call and provide
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