PPG released its financial report for the first quarter of 2022, reporting net sales of $4.3 billion, a record for the company. Q1 sales were 11 percent higher than the same period in 2021. Organic sales growth was at 7 percent, led by higher selling prices, and the reported earnings per diluted share (EPS) hit $0.08 with an adjusted EPS of $1.37.
“We delivered record sales during the quarter despite ongoing supply chain disruptions along with the initial impacts of geopolitical issues in Europe and increasing COVID-19 restrictions in China,” says Michael H. McGarry, PPG chairman and chief executive officer. “On a two-year stacked basis, our selling prices are up about 12 percent over the first quarter of 2020 as we continue to manage through persistent and broad inflation. Sales also benefited from our recent acquisitions as Tikkurila and traffic solutions both delivered strong performances.”
The quarterly report noted that raw material costs were up 25 percent year-over-year, and energy and transportation costs were also up. The company completed its acquisition of the powder coatings business of Arsonsisi on April 1.
Looking forward to the second quarter of 2022, PPG is predicting that aggregate sales volumes will be down a low-to-mid-single-digit percentage on a year-over-year basis. The company is predicting a reported EPS of $1.44 to $1.74 and an adjusted of EPS $1.60 to $1.90, excluding amortization expense of $0.14 and costs related to previously approved and communicated business restructuring of $0.02.
“I remain optimistic about the number of organic growth opportunities that we are pursuing, increased sales volumes associated with return to normal historical inventory levels in most of our end-use markets and the expected recovery in automotive original equipment manufacturer and aerospace coatings, where we have leading global positions,” McGarry says. “Finally, I want to thank all our global employees who continue to ‘make it happen’ by providing excellent service to our customers and supporting our communities in need during these challenging times.”
