PPG Industries, Inc. (NYSE: PPG)
PPG Industries Inc announced its third-quarter 2018 financial results on Thursday, October 18.
The paint maker managed to beat estimates on both its top and bottom lines, reporting earnings of $1.55 per share on $3.82 billion in revenue.
However, the company said it continued to experience higher costs of raw materials during the quarter, despite trying to pass them to customers by raising prices of its products.
Last week, PPG revealed it was using more money to buy the ingredients needed to make the products.
Labor, oil and shipping costs were also higher during the three months ended September 30. PPG stock has gone down 16% this year, while the S&P 500 index has risen 5%.
The shares have dropped 13% year over year and were unchanged at $98.12 in premarket trading Thursday
PPG Earnings & Outlook
The company posted a profit of $378 million, or $1.55 per share for the quarter, down from $610 million, or $2.36 per share, in the earlier-year period.
Earnings, adjusted for special items, were $1.45 per share for the quarter, down from $1.52 in the same period a year ago.
Sales came in at $3.82 billion during the quarter, which is an increase of 1.1% from the third quarter of the previous year. Meanwhile, the cost of goods sold grew by 7.1%.
Analysts were expecting adjusted earnings of $1.43 per share on sales of $3.79 billion, according to figures compiled by Zacks Investment Research.
PPG Industries CEO Comments
Michael McGarry, chairman and chief executive officer of the company, commented, “We delivered strong net sales growth in local currencies of more than 3 percent. This growth was driven by higher selling prices and continued strong volume growth from several PPG business units, including aerospace and general industrial coatings.
“Our selling prices have improved for six consecutive quarters, and we have additional pricing actions underway. In addition, we continue to take aggressive steps to recover our operating margins, including acceleration of restructuring actions and disciplined cost management.”
PPG Industries, Inc. Company Profile
PPG Industries, Inc. engages in the manufacture and distribution of coatings, specialty materials, and glass products. It operates through the following business segments: Performance Coatings, Industrial Coatings, and Glass.
The Performance Coatings segment comprises of the refinish, aerospace, protective and marine, and architectural coatings businesses. The Industrial Coatings segment includes automotive OEM, industrial coatings, packaging coatings, and specialty coatings and materials businesses.
The Glass segment deals with the flat glass and fiberglass businesses. The company competes with Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Benjamin Moore, Hempel A/S, the Jotun Group, Masco Corporation, Materis Paints, Nippon Paint, RPM International Inc, the Sherwin-Williams Company, Valspar Corporation, CPIC Fiberglass, Johns Manville Corporation, Jushi Group, Owens Corning and Taishan Fiberglass.
The company was founded was founded by John B. Ford and John A. Pitcairn in 1883 and is headquartered in Pittsburgh, PA. – CNN Money