PPG reported record third-quarter net sales of  $4.5 billion, up about 8% in constant currencies. The company saw organic sales growth of more than 9%, driven by higher selling prices, which are up 18% on a two-year stacked basis. Reported earnings per diluted share from continuing operations (EPS) were $1.39 and adjusted EPS was $1.66. Inflationary cost pressures persist, with raw material cost inflation of nearly 40% on two-year stack. The company is expecting improving pace of year-over-year segment operating margin recovery in fourth quarter and into 2023.

“We achieved record sales in the third quarter driven by continued selling price realization, resulting in more than a 12% increase in selling prices versus the third quarter 2021 and an 18% increase on a two-year stacked basis,” says Michael H. McGarry, PPG chairman and chief executive officer.

“Looking ahead, normal seasonal demand trends are anticipated in the fourth quarter. Due to the reduced economic activity, an additional cost restructuring program is now underway focused on fast payback actions targeting $70 million of annualized savings upon full implementation. Finally, we expect that our year-over-year operating margins will improve in the fourth quarter and into 2023 as we work to restore our historical margin profile through our actions to fully offset inflation and manage our costs. Lastly, I want to thank our global employees who demonstrate The PPG Way every day by continuing to overcome unexpected challenges to provide our customers across the world with the products and excellent service they rely on.”

PPG also announced the appointment of Tim Knavish as president and CEO Tim Knavish and Michael McGarry as executive chairman.