PPG Board of Directors authorizes $2.5 billion share repurchase program

Rhea-AI Summary

PPG (NYSE:PPG) announces a $2.5 billion share repurchase program authorized by its board of directors, in addition to the existing $860 million authorization. The program allows for immediate repurchases without expiration, giving management discretion in the purchase conditions. Repurchases will be made in accordance with securities laws through open market or privately negotiated transactions. PPG reported net sales of $18.2 billion in 2023, serving various markets globally.

Insights

Financial Analyst

The new $2.5 billion share repurchase program initiated by PPG is a substantial financial maneuver that will potentially impact the company's per-share metrics favorably. From a financial perspective, this move may signal to investors that PPG's leadership believes the stock is undervalued or that they see it as a good use of capital given the current market conditions. Share buybacks can often lead to an increase in earnings per share (EPS), as there are fewer shares outstanding, which can make the stock more attractive to investors.

However, it's important for investors to consider whether these funds could be more effectively used for growth initiatives or reducing debt. Share repurchases can sometimes be a sign that a company lacks better investment opportunities. Moreover, investors should keenly observe the future quarterly earnings reports to assess the impact of this repurchase on the company's financial health, keeping in mind that while buybacks can enhance EPS, they do not inherently increase the intrinsic value of the company.

Market Strategist

PPG's decision to implement a new share repurchase program, on top of the existing one from December 2017, suggests a strategic effort to manage the company's capital structure actively. In the short term, this may create a positive sentiment among investors, as it could be perceived as a commitment to returning value to shareholders. The company's announcement indicates a discretionary approach, which provides flexibility to adapt to changing market conditions.

Long-term investors should monitor PPG's allocation of capital towards such repurchases versus its investment in strategic initiatives, which could drive sustainable growth. The timing of share repurchases can be quite telling; if executed when shares are deemed to be undervalued, the program can serve as a tool for shareholder value maximization. It's essential to weigh this action against the backdrop of the company's ongoing needs for capital for research and development, expansion and potential acquisitions in the paints and coatings industry.

PITTSBURGH--(BUSINESS WIRE)-- PPG (NYSE:PPG) today announced that its board of directors has authorized the repurchase of $2.5 billion of outstanding common stock. The authorization is effective immediately, does not expire, and gives management discretion in determining the conditions under which shares may be purchased.

This program is in addition to the company’s existing share repurchase authorization, which was approved in December 2017 and had approximately $860 million remaining as of March 31, 2024. Repurchases will be made in accordance with applicable securities laws in the open market or in privately negotiated transactions. Repurchases may commence or cease without prior notice depending on economic and equity market conditions, magnitude of other cash uses, including pace and timing of acquisitions, and other factors.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE: PPG), we work every day to develop and deliver the paints, coatings, and specialty materials that our customers have trusted for 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $18.2 billion in 2023. We serve customers in construction, consumer products, industrial and transportation markets, and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

Forward-Looking Statements

Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to the timing and number of shares ultimately purchased under PPG Industries’ share repurchase program. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including PPG Industries’ ability to complete the share repurchase program and the other risks and uncertainties discussed in PPG Industries’ periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG Industries does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

CATEGORY Corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418713870/en/

Media Contact:

Mark Silvey

Corporate Communications

silvey@ppg.com

Investor Contact:

Jonathan Edwards

Investor Relations

+1 412 434 3466

jonathanedwards@ppg.com

investor.ppg.com

Source: PPG

FAQ

What did PPG's board of directors authorize?

PPG's board of directors authorized a $2.5 billion share repurchase program.

When was the existing share repurchase authorization approved?

The existing share repurchase authorization was approved in December 2017.

How much was remaining in the existing share repurchase authorization as of March 31, 2024?

Approximately $860 million was remaining in the existing share repurchase authorization as of March 31, 2024.

Where is PPG headquartered?

PPG is headquartered in Pittsburgh.

What were PPG's reported net sales in 2023?

PPG reported net sales of $18.2 billion in 2023.