PPG has recorded record third quarter 2023 net sales of US$4.6 billion, helped in part by record sales in the automotive refinish coatings business. The result was a four per cent increase on Q3 2022’s figure, while net income improved 29 per cent to US$329 million.
“I am proud of the PPG team for delivering outstanding results in a challenging global demand environment, including a slower-than-expected recovery in China,” said Tim Knavish, PPG Chairman And Chief Executive Officer. “We achieved record third quarter net sales and adjusted earnings per share aided by the breadth and resiliency of our business portfolio. This included strong operating performance with both of our operating segments delivering at least 25 per cent earnings growth, led by our aerospace, automotive original equipment manufacturer, automotive refinish coatings, and PPG Comex businesses, all of which also produced record sales for a third quarter.”
Aggregate segment margin increased 260 basis points over the same quarter last year, marking the fourth consecutive quarter of year-over-year margin improvement. Additionally, PPG’s earnings growth and improved working capital contributed to record operating cash flow of more than US$1.5 billion year to date, up more than US$1.1 billion year on year.
Looking ahead, PPG said while demand in Europe and China are at or nearing trough levels and likely present growth opportunities in 2024, the company anticipates soft global macroeconomic conditions will persist in the fourth quarter.
“Overall, we remain confident that our technology-advantaged products and strong brands will drive our outperformance versus the markets we supply, including continued growth in our aerospace and PPG Comex businesses. In addition, supply conditions have returned to historical norms and raw material availability remains ample,” said Knavish.