PPG expects its first quarter 2023 financial results to exceed expectations thanks to higher sales volumes and pricing achieved during the period.
Adjusted earnings per diluted share (EPS) is expected to be between US$1.52 and US$1.58, compared to the company’s guidance of US$1.10 to US$1.20.
“The pace of our operating margin recovery accelerated during the quarter, driven by higher sales volumes and additional selling price capture,” said Tim Knavish, President and Chief Executive Officer of PPG. “Our stronger sales volume performance compared to our guidance was led by the aerospace and automotive original equipment manufacturer coatings businesses. In addition, we delivered higher year-over-year earnings across most of our business portfolio including Europe.”
The company also said stronger-than-expected demand in PPG Comex, and US architectural coatings where the company benefitted from a recent “customer win”, aided quarterly results. Sales volumes were also better in China due to fewer pandemic disruptions than forecast.
In addition, the company reported that in March 2023 it purchased group annuity contracts that transferred pension benefit obligations for some of the company’s retirees in the US to third-party insurance companies, resulting in an estimated non-cash pension settlement charge of approximately US$191 million, or US$0.61 per share. The expected first quarter 2023 adjusted EPS excludes the impact of this pension settlement charge.
PPG will announce detailed first quarter 2023 financial results and provide full-year 2023 guidance on 20 April. The company plans to hold an earnings teleconference on 21 April when it will provide comprehensive updates and financial projections.