PPG reports fourth quarter and full-year 2024 financial results
PPG (NYSE:PPG) reported its Q4 and full-year 2024 financial results, following the divestiture of its silica products and architectural coatings U.S. and Canada businesses. Q4 net sales from continuing operations were $3.7 billion, with reported EPS of $0.01 and adjusted EPS of $1.61, up 3% year-over-year.
Full-year 2024 highlights include net sales from continuing operations of $15.8 billion, reported EPS of $5.72, and adjusted EPS of $7.87, representing a 6% increase. The company achieved segment margin of 17.1% and segment EBITDA margin of 19.9%, up 70 basis points year-over-year. Operating cash flow reached $1.4 billion, with share repurchases and dividends totaling $1.4 billion.
For 2025, PPG expects adjusted EPS between $7.75 and $8.05, targeting 7% growth excluding foreign currency impact and higher tax rates. The company plans to deploy approximately $400 million toward share repurchases in Q1 2025.
PPG (NYSE:PPG) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, in seguito alla cessione delle sue attività di prodotti in silice e rivestimenti architettonici negli Stati Uniti e in Canada. Le vendite nette del quarto trimestre dalle operazioni continuative sono state di 3,7 miliardi di dollari, con un utile per azione (EPS) riportato di 0,01 dollari e un EPS rettificato di 1,61 dollari, in aumento del 3% rispetto all'anno precedente.
Le principali evidenze dell'anno 2024 includono vendite nette dalle operazioni continuative di 15,8 miliardi di dollari, un EPS riportato di 5,72 dollari e un EPS rettificato di 7,87 dollari, che rappresentano un aumento del 6%. L'azienda ha raggiunto un margine di segmento del 17,1% e un margine EBITDA di segmento del 19,9%, in aumento di 70 punti base rispetto all'anno precedente. Il flusso di cassa operativo ha raggiunto 1,4 miliardi di dollari, con riacquisti di azioni e dividendi per un totale di 1,4 miliardi di dollari.
Per il 2025, PPG prevede un EPS rettificato tra 7,75 e 8,05 dollari, puntando a una crescita del 7% escludendo l'impatto delle valute estere e l'aumento delle aliquote fiscali. L'azienda prevede di destinare circa 400 milioni di dollari ai riacquisti di azioni nel primo trimestre del 2025.
PPG (NYSE:PPG) informó sus resultados financieros del cuarto trimestre y del año completo 2024, tras la desinversión de sus negocios de productos de sílice y recubrimientos arquitectónicos en EE. UU. y Canadá. Las ventas netas del cuarto trimestre de las operaciones continuas fueron de 3,7 mil millones de dólares, con una ganancia por acción (EPS) reportada de 0,01 dólares y un EPS ajustado de 1,61 dólares, lo que representa un aumento del 3% en comparación con el año anterior.
Los aspectos destacados de todo el año 2024 incluyen ventas netas de operaciones continuas de 15,8 mil millones de dólares, un EPS reportado de 5,72 dólares y un EPS ajustado de 7,87 dólares, lo que representa un aumento del 6%. La compañía logró un margen de segmento del 17,1% y un margen EBITDA de segmento del 19,9%, un aumento de 70 puntos base en comparación con el año anterior. El flujo de caja operativo alcanzó 1,4 mil millones de dólares, con recompras de acciones y dividendos que suman 1,4 mil millones de dólares.
Para 2025, PPG espera un EPS ajustado entre 7,75 y 8,05 dólares, apuntando a un crecimiento del 7% excluyendo el impacto de divisas extranjeras y tasas impositivas más altas. La empresa planea destinar aproximadamente 400 millones de dólares a recompras de acciones en el primer trimestre de 2025.
PPG (NYSE:PPG)는 실리카 제품 및 미국과 캐나다의 건축 코팅 사업 매각 후 2024년 4분기 및 연간 재무 실적을 발표했습니다. 계속 운영되는 사업에서 4분기 순매출은 37억 달러였으며, 보고된 주당 순이익(EPS)은 0.01달러, 조정된 EPS는 1.61달러로, 전년 대비 3% 증가했습니다.
2024년 전체의 주요 사항으로는 계속 운영되는 사업에서의 순매출이 158억 달러, 보고된 EPS가 5.72달러, 조정된 EPS가 7.87달러로 6% 증가했습니다. 회사는 17.1%의 세그먼트 마진과 19.9%의 세그먼트 EBITDA 마진을 달성하여 전년 대비 70베이시스 포인트 증가했습니다. 운영 현금 흐름은 14억 달러에 달하며, 자사주 매입 및 배당금 총액도 14억 달러에 이릅니다.
2025년을 위해 PPG는 조정된 EPS를 7.75달러에서 8.05달러 사이로 예상하며, 외환 영향 및 높은 세율을 제외하고 7% 성장을 목표로 하고 있습니다. 회사는 2025년 1분기에 약 4억 달러를 자사주 매입에 사용할 계획입니다.
PPG (NYSE:PPG) a annoncé ses résultats financiers pour le quatrième trimestre et l'année complète 2024, suite à la cession de ses activités de produits de silice et de revêtements architecturaux aux États-Unis et au Canada. Les ventes nettes du quatrième trimestre issus des opérations continues ont atteint 3,7 milliards de dollars, avec un bénéfice par action (EPS) déclaré de 0,01 dollar et un EPS ajusté de 1,61 dollar, en hausse de 3 % par rapport à l'année précédente.
Les points forts de l'année 2024 comprennent des ventes nettes issues des opérations continues de 15,8 milliards de dollars, un EPS déclaré de 5,72 dollars et un EPS ajusté de 7,87 dollars, représentant une augmentation de 6 %. L'entreprise a réalisé une marge de segment de 17,1 % et une marge EBITDA de segment de 19,9 %, en hausse de 70 points de base par rapport à l'année précédente. Le flux de trésorerie opérationnel a atteint 1,4 milliard de dollars, avec des rachats d'actions et des dividendes totalisant 1,4 milliard de dollars.
Pour 2025, PPG prévoit un EPS ajusté compris entre 7,75 et 8,05 dollars, visant une croissance de 7 % en excluant l'impact des devises étrangères et des taux d'imposition plus élevés. L'entreprise prévoit de consacrer environ 400 millions de dollars aux rachats d'actions au premier trimestre de 2025.
PPG (NYSE:PPG) hat seine Finanzkennzahlen für das vierte Quartal und das Gesamtjahr 2024 bekannt gegeben, nachdem das Unternehmen seine Silikaprodukte und Geschäftsbereiche für architektonische Beschichtungen in den USA und Kanada veräußert hat. Die Nettoumsätze aus fortgeführten Betrieben im vierten Quartal betrugen 3,7 Milliarden Dollar, mit einem berichteten Gewinn pro Aktie (EPS) von 0,01 Dollar und einem bereinigten EPS von 1,61 Dollar, was einem Anstieg von 3 % im Vergleich zum Vorjahr entspricht.
Die Highlights des Gesamtjahres 2024 beinhalten Nettoumsätze aus fortgeführten Betrieben von 15,8 Milliarden Dollar, einen berichteten EPS von 5,72 Dollar und einen bereinigten EPS von 7,87 Dollar, was einem Anstieg von 6 % entspricht. Das Unternehmen erzielte eine Segmentmarge von 17,1 % und eine Segment-EBITDA-Marge von 19,9 %, was einem Anstieg von 70 Basispunkten im Vergleich zum Vorjahr entspricht. Der operative Cashflow erreichte 1,4 Milliarden Dollar, mit Aktienrückkäufen und Dividenden in Höhe von insgesamt 1,4 Milliarden Dollar.
Für 2025 erwartet PPG einen bereinigten EPS von 7,75 bis 8,05 Dollar und strebt ein Wachstum von 7 % an, wobei der Einfluss von Fremdwährungen und höheren Steuersätzen ausgeschlossen wird. Das Unternehmen plant, etwa 400 Millionen Dollar für Aktienrückkäufe im ersten Quartal 2025 einzusetzen.
- Adjusted EPS increased 6% year-over-year to $7.87
- Operating cash flow strong at $1.4 billion
- Segment EBITDA margin improved 70 basis points to 19.9%
- Share repurchases of $750 million in 2024, representing 3% of outstanding shares
- Aerospace order backlog increased to $300 million
- Q4 net sales declined 5% year-over-year to $3.7 billion
- Q4 reported EPS dropped 98% to $0.01
- Organic sales declined in low single-digits for both Q4 and full-year
- Industrial Coatings segment EBITDA decreased 18% in Q4
- Expects slow start to 2025 due to challenged demand in Europe and global industrial markets
Insights
PPG's strategic transformation through key divestitures of silica products and architectural coatings businesses marks a pivotal shift toward higher-margin operations. The adjusted EBITDA margin improvement to
The company's financial strength is evident in its robust cash deployment, returning
Regional performance presents a mixed picture: strong growth in Mexico, China and India contrasts with weakness in Europe and U.S. industrial markets. The aerospace division's growing
The 2025 guidance of
The new segment reporting structure, particularly isolating Global Architectural Coatings, provides enhanced transparency and suggests potential for more focused operational strategies and margin improvement initiatives across distinct business units.
Fourth quarter highlights:
-
Completed divestitures of silica products and architectural coatings
U.S. andCanada businesses, improving company margin and growth profile -
Recast financials to reflect architectural coatings
U.S. andCanada as discontinued operations -
Net sales from continuing operations of
$3.7 billion -
Reported earnings per diluted share from continuing operations (EPS) of
$0.01 $1.61 3% year over year - Delivered ninth consecutive quarter of segment margin and segment EBITDA margin expansion
-
Share repurchases of approximately
$250 million
Full-year 2024 highlights:
-
Full-year financials reflect architectural coatings
U.S. andCanada as discontinued operations -
Net sales from continuing operations of
$15.8 billion -
Reported EPS of
$5.72 $7.87 6% year over year -
Segment margin of
17.1% and segment EBITDA margin of19.9% , an increase of 70 basis points year over year -
Company net income margin of
8.5% and adjusted EBITDA margin of18.1% , an increase of 100 basis points year over year -
Operating cash flow of
$1.4 billion $1.4 billion
Fourth Quarter Consolidated Results
$ in millions, except EPS |
4Q 2024 |
4Q 2023 |
YOY change |
Net sales (a) |
|
|
(5)% |
Net income (a) |
|
|
(98)% |
Adjusted net income (a)(b) |
|
|
+ |
EPS (a) |
|
|
(98)% |
EPS from discontinued operations (c) |
|
|
|
Adjusted EPS (a)(b) |
|
|
+ |
(a) From continuing operations |
|||
(b) Reconciliations of reported to adjusted figures are included below |
|||
(c) Discontinued operations includes the loss on sale of the architectural coatings |
|||
The company’s financial results for all periods presented have been recast to reflect the divested |
|||
Chairman and CEO Comments
Tim Knavish, PPG chairman and chief executive officer, commented on the year and quarter:
Throughout 2024, we demonstrated resilience in a challenging macro environment by growing our adjusted EPS by
In 2024, we took significant steps to optimize our business portfolio through the divestitures of both our silica products and our architectural coatings
In both the fourth quarter and full-year 2024, organic sales declined a low single-digit percentage year over year with growth in
Fourth quarter adjusted EPS was
Given the revised portfolio, we have expanded our segment reporting structure and will now report all our architectural coatings businesses as a separate segment, Global Architectural Coatings. The reporting of the remainder of the businesses within the Performance Coatings and Industrial Coatings segments will remain the same. This expanded segmentation will provide investors with enhanced visibility as we drive the company’s growth and performance.
Looking ahead, I am excited about 2025 and beyond. We anticipate a slow start to 2025 as demand in
The successful divestitures and solid performance this year would not be possible without the dedication of our employees. We are now a much more focused organization dedicated to driving sustainable organic growth. Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: We protect and beautify the world®.
Fourth Quarter 2024 Reportable Segment Financial Results
Global Architectural Coatings segment
$ in millions |
4Q 2024 |
4Q 2023 |
YOY change |
Net sales (a) |
|
|
(7)% |
Sales volumes |
|
|
(2)% |
Selling prices |
|
|
—% |
Foreign currency translation |
|
|
(5)% |
Segment income |
|
|
(10)% |
Segment income % |
|
|
|
Segment EBITDA (b) |
|
|
(8)% |
Segment EBITDA % |
|
|
|
(a) From continuing operations |
|||
(b) Reconciliations of reported to adjusted figures are included below |
|||
The Global Architectural Coatings segment, which was previously reported as part of the Performance Coatings segment, is comprised of architectural coatings
Organic sales for architectural coatings EMEA declined by a low single-digit percentage, driven by lower sales volumes as demand was lower year-over-year across the region. Year-over-year organic sales for architectural coatings
Segment EBITDA decreased by
Performance Coatings segment
$ in millions |
4Q 2024 |
4Q 2023 |
YOY change |
Net sales (a) |
|
|
+ |
Sales volumes |
|
|
+ |
Selling prices |
|
|
+ |
Divestitures and other |
|
|
(2)% |
Segment income |
|
|
+ |
Segment income % |
|
|
|
Segment EBITDA (b) |
|
|
+ |
Segment EBITDA % |
|
|
|
(a) From continuing operations |
|||
(b) Reconciliations of reported to adjusted figures are included below |
|||
The Performance Coatings segment, which is now comprised of aerospace coatings, automotive refinish coatings, protective and marine coatings, and traffic solutions delivered
Sales volumes increased
Segment EBITDA increased by
Industrial Coatings segment
$ in millions |
4Q 2024 |
4Q 2023 |
YOY change |
Net sales (a) |
|
|
(9)% |
Sales volumes |
|
|
(4)% |
Selling prices |
|
|
(2)% |
Foreign currency translation |
|
|
(1)% |
Divestitures and other |
|
|
(2)% |
Segment income |
|
|
(20)% |
Segment income % |
|
|
|
Segment EBITDA (b) |
|
|
(18)% |
Segment EBITDA % |
|
|
|
(a) From continuing operations |
|||
(b) Reconciliations of reported to adjusted figures are included below |
|||
Industrial Coatings segment net sales declined compared to the fourth quarter 2023 primarily due to lower sales volumes and lower selling prices from certain index-based customer contracts.
Automotive OEM coatings organic sales decreased as expected, declining by a high single-digit percentage due to lower
Segment EBITDA decreased
Full-Year 2024 Financial Results
$ in millions, except EPS |
2024 |
2023 |
YOY change |
Net sales (a) |
|
|
(2)% |
Net income (a) |
|
|
+ |
Net income margin (a) |
|
|
|
Adjusted net income (a)(b) |
|
|
+ |
EPS (a) |
|
|
+ |
EPS from discontinued operations (c) |
|
|
|
Adjusted EPS (a)(b) |
|
|
+ |
Adjusted EBITDA margin (a)(b) |
|
|
|
(a) From continuing operations |
|||
(b) Reconciliations of reported to adjusted figures are included below |
|||
(c) Discontinued operations includes the loss on sale of the architectural coatings |
|||
Full-year 2024 net sales were
In a challenging macro environment, the company delivered strong adjusted EPS growth of
In 2024, the company paid approximately
Additional Financial Information
-
At quarter end, the company had cash and short-term investments totaling
$1.4 billion -
Net debt was
$4.5 billion $30 million -
Corporate expenses were
$87 million $27 million -
Net interest expense was
$15 million -
The reported effective tax rate on continuing operations was
86% for the fourth quarter, as certain business restructuring-related costs and portfolio optimization items did not have a tax benefit. The adjusted effective tax rate was22% for the fourth quarter.
Outlook
The company anticipates that adjusted earnings per share for the full year 2025 will be in the range of
Additional information related to 2025 financial projections is posted within the slides and prepared commentary associated with the fourth quarter earnings documents on the Investors section of PPG.com.
The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.
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 more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in
The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.
Additional Information
PPG will provide detailed commentary regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, January 30. The company will hold a conference call to review its fourth quarter and full year 2024 financial performance on January 31, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://www.netroadshow.com/events/login?show=000510c7&confId=75486. The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A telephone replay will be available January 31, beginning at approximately 11:00 a.m. ET, through February 14, at 11:59 p.m. ET. The dial-in numbers for the replay are: in
Forward-Looking Statements
Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2023 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.
All information in this release speaks only as of January 30, 2025, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.
Regulation G Reconciliation
PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA and segment EBITDA are not recognized financial measures determined in accordance with
Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income ($ in millions, except per-share amounts) |
|||||||||||
|
Fourth Quarter
|
|
Fourth Quarter
|
||||||||
|
$ |
|
EPS(a) |
|
$ |
|
EPS(a) |
||||
Reported net income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related amortization expense (b) |
24 |
|
|
0.10 |
|
|
32 |
|
|
0.13 |
|
Business restructuring-related costs, net (c) |
314 |
|
|
1.35 |
|
|
13 |
|
|
0.06 |
|
Portfolio optimization (d) |
35 |
|
|
0.15 |
|
|
28 |
|
|
0.12 |
|
Legacy environmental remediation charges (e) |
3 |
|
|
0.01 |
|
|
17 |
|
|
0.07 |
|
Insurance recoveries (f) |
(3 |
) |
|
(0.01 |
) |
|
(5 |
) |
|
(0.02 |
) |
Impairment and other related charges (g) |
— |
|
|
— |
|
|
160 |
|
|
0.67 |
|
Currency valuation loss (h) |
— |
|
|
— |
|
|
24 |
|
|
0.10 |
|
Adjusted net income from continuing operations, excluding certain items |
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
Full Year
|
||||||||
|
$ |
|
EPS(a) |
|
$ |
|
EPS(a) |
||||
Reported net income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related amortization expense (b) |
100 |
|
|
0.42 |
|
|
115 |
|
|
0.48 |
|
Business restructuring-related costs, net (c) |
324 |
|
|
1.39 |
|
|
33 |
|
|
0.14 |
|
Portfolio optimization (d) |
65 |
|
|
0.28 |
|
|
58 |
|
|
0.24 |
|
Legacy environmental remediation charges (e) |
18 |
|
|
0.07 |
|
|
17 |
|
|
0.07 |
|
Insurance recoveries (f) |
(3 |
) |
|
(0.01 |
) |
|
(12 |
) |
|
(0.05 |
) |
Impairment and other related charges (g) |
— |
|
|
— |
|
|
160 |
|
|
0.67 |
|
Currency valuation loss (h) |
— |
|
|
— |
|
|
24 |
|
|
0.10 |
|
Pension settlement charge (i) |
— |
|
|
— |
|
|
144 |
|
|
0.61 |
|
Adjusted net income from continuing operations, excluding certain items |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Fourth Quarter
|
||||||||||||||
|
Income
|
|
Tax
|
|
Effective
|
|
Income
|
|
Tax
|
|
Effective
|
||||||
Effective tax rate, continuing operations |
|
|
|
|
|
|
86.4 |
% |
|
|
|
|
|
|
|
45.0 |
% |
Acquisition-related amortization expense (b) |
32 |
|
|
8 |
|
|
24.4 |
% |
|
44 |
|
|
12 |
|
|
27.3 |
% |
Business restructuring-related costs, net (c) |
362 |
|
|
48 |
|
|
13.2 |
% |
|
16 |
|
|
3 |
|
|
18.8 |
% |
Portfolio optimization (d) |
17 |
|
|
(18 |
) |
|
(104.1 |
)% |
|
31 |
|
|
3 |
|
|
9.7 |
% |
Legacy environmental remediation charges (e) |
4 |
|
|
1 |
|
|
24.3 |
% |
|
24 |
|
|
7 |
|
|
29.2 |
% |
Insurance recoveries (f) |
(4 |
) |
|
(1 |
) |
|
24.3 |
% |
|
(7 |
) |
|
(2 |
) |
|
28.6 |
% |
Impairment and other related charges (g) |
— |
|
|
— |
|
|
— |
% |
|
160 |
|
|
— |
|
|
— |
% |
Currency valuation loss (h) |
— |
|
|
— |
|
|
— |
% |
|
20 |
|
|
(4 |
) |
|
(20.0 |
)% |
Adjusted effective tax rate, continuing operations, excluding certain items |
|
|
|
|
|
|
22.0 |
% |
|
|
|
|
|
|
|
22.7 |
% |
|
Full Year 2024 |
|
Full Year 2023 |
||||||||||||||
|
Income
|
|
Tax
|
|
Effective
|
|
Income
|
|
Tax
|
|
Effective
|
||||||
Effective tax rate, continuing operations |
|
|
|
|
|
|
25.6 |
% |
|
|
|
|
|
|
|
25.3 |
% |
Acquisition-related amortization expense (b) |
132 |
|
|
32 |
|
|
24.2 |
% |
|
154 |
|
|
39 |
|
|
25.3 |
% |
Business restructuring-related costs, net (c) |
377 |
|
|
53 |
|
|
14.1 |
% |
|
41 |
|
|
8 |
|
|
19.5 |
% |
Portfolio optimization (d) |
59 |
|
|
(6 |
) |
|
(10.2 |
)% |
|
53 |
|
|
(7 |
) |
|
(13.2 |
)% |
Legacy environmental remediation charges(e) |
24 |
|
|
6 |
|
|
25.0 |
% |
|
24 |
|
|
7 |
|
|
29.2 |
% |
Insurance recoveries (f) |
(4 |
) |
|
(1 |
) |
|
25.0 |
% |
|
(16 |
) |
|
(4 |
) |
|
25.0 |
% |
Impairment and other related charges (g) |
— |
|
|
— |
|
|
— |
% |
|
160 |
|
|
— |
|
|
— |
% |
Currency valuation loss (h) |
— |
|
|
— |
|
|
— |
% |
|
20 |
|
|
(4 |
) |
|
(20.0 |
)% |
Pension settlement charge (i) |
— |
|
|
— |
|
|
— |
% |
|
190 |
|
|
46 |
|
|
24.2 |
% |
Adjusted effective tax rate, continuing operations, excluding certain items |
|
|
|
|
|
|
22.9 |
% |
|
|
|
|
|
|
|
22.2 |
% |
|
Fourth Quarter |
|
Full Year |
||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Reported net income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
15 |
|
|
13 |
|
|
64 |
|
|
107 |
|
Income tax expense |
70 |
|
|
94 |
|
|
475 |
|
|
428 |
|
Depreciation |
87 |
|
|
96 |
|
|
360 |
|
|
360 |
|
Amortization |
32 |
|
|
44 |
|
|
132 |
|
|
154 |
|
Net income attributable to noncontrolling interests |
9 |
|
|
12 |
|
|
33 |
|
|
39 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Business restructuring-related costs, net (c) |
362 |
|
|
16 |
|
|
377 |
|
|
41 |
|
Portfolio optimization (d) |
17 |
|
|
31 |
|
|
59 |
|
|
53 |
|
Legacy environmental remediation charges(e) |
4 |
|
|
24 |
|
|
24 |
|
|
24 |
|
Insurance recoveries (f) |
(4 |
) |
|
(7 |
) |
|
(4 |
) |
|
(16 |
) |
Impairment and other related charges (g) |
— |
|
|
160 |
|
|
— |
|
|
160 |
|
Currency valuation loss (h) |
— |
|
|
20 |
|
|
— |
|
|
20 |
|
Pension settlement charge (i) |
— |
|
|
— |
|
|
— |
|
|
190 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
Net income margin |
0.1 |
% |
|
2.6 |
% |
|
8.5 |
% |
|
7.5 |
% |
Adjusted EBITDA margin |
15.9 |
% |
|
15.5 |
% |
|
18.1 |
% |
|
17.1 |
% |
| (a) | Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding. |
|
(b) |
Acquisition-related amortization expense is excluded from adjusted net income from operations, excluding certain items, due to its significance as a result of the purchase price assigned to finite-live intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to revenue generation, the related revenue is not excluded. |
|
(c) |
Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of |
|
(d) |
Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of |
|
(e) |
Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income. |
|
(f) |
In the fourth quarter 2024 and the fourth quarter 2023, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. In the first quarter 2023, the company received reimbursement under its insurance policies for damages incurred at a southern |
|
(g) |
In the fourth quarter 2023, the company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in |
|
(h) |
In December 2023, the central bank of |
|
(i) |
In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the |
Fourth Quarter |
|
Full Year |
|||
|
2024 |
2023 |
|
2024 |
2023 |
Global Architectural Coatings |
|
|
|
|
|
Net sales |
|
|
|
|
|
Segment income |
|
|
|
|
|
Segment depreciation and amortization |
26 |
25 |
|
104 |
101 |
Segment EBITDA |
|
|
|
|
|
Segment EBITDA % |
|
|
|
|
|
Performance Coatings |
|
|
|
|
|
Net sales |
|
|
|
|
|
Segment income |
|
|
|
|
|
Segment depreciation and amortization |
33 |
35 |
|
132 |
139 |
Segment EBITDA |
|
|
|
|
|
Segment EBITDA % |
|
|
|
|
|
Industrial Coatings |
|
|
|
|
|
Net sales |
|
|
|
|
|
Segment income |
|
|
|
|
|
Segment depreciation and amortization |
49 |
54 |
|
206 |
213 |
Segment EBITDA |
|
|
|
|
|
Segment EBITDA % |
|
|
|
|
|
Total Segment EBITDA |
|
|
|
|
|
Net sales |
|
|
|
|
|
Segment income |
|
|
|
|
|
Segment depreciation and amortization |
108 |
114 |
|
442 |
453 |
Segment EBITDA |
|
|
|
|
|
Segment EBITDA % |
|
|
|
|
|
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited) |
|||||
(All amounts in millions except per-share data) |
|||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||
|
2024 |
2023 |
|
2024 |
2023 |
Net sales |
|
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
2,217 |
2,300 |
|
9,252 |
9,678 |
Selling, general and administrative |
834 |
906 |
|
3,391 |
3,401 |
Depreciation |
87 |
96 |
|
360 |
360 |
Amortization |
32 |
44 |
|
132 |
154 |
Research and development, net |
106 |
109 |
|
423 |
424 |
Interest expense |
58 |
57 |
|
241 |
247 |
Interest income |
(43) |
(44) |
|
(177) |
(140) |
Business restructuring, net |
234 |
1 |
|
233 |
(2) |
Impairment and other related charges, net |
146 |
160 |
|
146 |
160 |
Pension settlement charge |
— |
— |
|
— |
190 |
Other (income)/charges, net |
(23) |
74 |
|
(8) |
80 |
Income before income taxes |
|
|
|
|
|
Income tax expense |
70 |
94 |
|
475 |
428 |
Income from continuing operations |
|
|
|
|
|
(Loss)/income from discontinued operations, net of tax |
(282) |
(13) |
|
(228) |
47 |
Net (loss)/income attributable to controlling and noncontrolling interests |
|
|
|
1,149 |
1,309 |
Net (loss)/income attributable to noncontrolling interests |
(9) |
(12) |
|
(33) |
(39) |
Net (loss)/income (attributable to PPG) |
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to PPG: |
|
|
|
|
|
Income from continuing operations, net of tax |
|
|
|
1,344 |
1,223 |
(Loss)/income from discontinued operations, net of tax |
(282) |
(13) |
|
(228) |
47 |
Net (loss)/income (attributable to PPG) |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) |
|
|
|
|
|
Income from continuing operations, net of tax |
|
|
|
|
|
(Loss)/income from discontinued operations, net of tax |
(1.21) |
(0.06) |
|
(0.98) |
0.20 |
Net (loss)/income (attributable to PPG) |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) - assuming dilution |
|
|
|
|
|
Income from continuing operations, net of tax |
|
|
|
|
|
(Loss)/income from discontinued operations, net of tax |
(1.21) |
(0.05) |
|
(0.97) |
0.19 |
Net (loss)/income (attributable to PPG) |
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding |
231.8 |
236.2 |
|
233.8 |
236.0 |
|
|
|
|
|
|
Average shares outstanding - assuming dilution |
232.8 |
237.3 |
|
234.9 |
237.2 |
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
|||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited) |
|||
($ in millions) |
|||
|
Twelve Months Ended
|
||
|
2024 |
|
2023 |
Cash from operating activities: |
|
|
|
Cash from operating activities - continuing operations |
|
|
|
Cash from operating activities - discontinued operations |
|
|
|
Cash from operating activities |
|
|
|
Cash (used for)/from investing activities - continuing operations: |
|
|
|
Capital expenditures |
|
|
|
Business acquisitions, net of cash balances acquired |
|
|
|
Proceeds from divestiture of businesses |
|
|
|
Cash used for financing activities - continuing operations: |
|
|
|
Dividends paid on PPG common stock |
|
|
|
Purchase of treasury stock |
|
|
|
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) |
|
|
|
($ in millions) |
|
|
|
|
December 31 |
|
December 31 |
|
2024 |
|
2023 |
Current assets: |
|
|
|
Cash and cash equivalents |
|
|
|
Short-term investments |
88 |
|
75 |
Receivables, net |
2,985 |
|
3,007 |
Inventories |
1,846 |
|
1,934 |
Other current assets |
368 |
|
922 |
Total current assets |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Short-term debt and current portion of long-term debt |
|
|
|
Accounts payable and accrued liabilities |
3,731 |
|
4,155 |
Restructuring reserves |
128 |
|
84 |
Current portion of operating lease liabilities |
126 |
|
128 |
Other current liabilities |
90 |
|
381 |
Total current liabilities |
|
|
|
|
|
|
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
|
PPG OPERATING METRICS (unaudited) |
|
|
|
($ in millions) |
|
|
|
|
December 31 |
|
December 31 |
|
2024 |
|
2023 |
Operating Working Capital (a) |
|
|
|
As a percent of quarter sales, annualized |
15.6 % |
|
14.7 % |
|
|
|
|
(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities. |
|||
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited) |
|
|
|
|
||||
($ in millions) |
||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales |
|
|
|
|
|
|
|
|
Global Architectural Coatings |
|
|
|
|
|
|
|
|
Performance Coatings |
1,262 |
|
1,233 |
|
5,237 |
|
5,132 |
|
Industrial Coatings |
1,586 |
|
1,736 |
|
6,687 |
|
7,089 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income |
|
|
|
|
|
|
|
|
Global Architectural Coatings |
|
|
|
|
|
|
|
|
Performance Coatings |
259 |
|
218 |
|
1,142 |
|
1,019 |
|
Industrial Coatings |
185 |
|
231 |
|
893 |
|
968 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items not allocated to segments |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
(15) |
|
(13) |
|
(64) |
|
(107) |
|
Business restructuring-related costs, net (a) |
(362) |
|
(16) |
|
(377) |
|
(41) |
|
Portfolio optimization (b) |
(17) |
|
(31) |
|
(59) |
|
(53) |
|
Legacy environmental remediation charges (c) |
(4) |
|
(24) |
|
(24) |
|
(24) |
|
Insurance recoveries (d) |
4 |
|
7 |
|
4 |
|
16 |
|
Impairment and other related charges, net (e) |
— |
|
(160) |
|
— |
|
(160) |
|
Currency valuation loss (f) |
— |
|
(20) |
|
— |
|
(20) |
|
Pension settlement charge (g) |
— |
|
— |
|
— |
|
(190) |
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of |
|||||||
|
|
|
|
|
|
|
|
|
(b) |
Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of |
|||||||
|
|
|
|
|
|
|
|
|
(c) |
Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income. |
|||||||
|
|
|
|
|
|
|
|
|
(d) |
In the fourth quarter 2024 and the fourth quarter 2023, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. In the first quarter 2023, the company received reimbursement under its insurance policies for damages incurred at a southern |
|||||||
|
|
|
|
|
|
|
|
|
(e) |
In the fourth quarter 2023, the company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in |
|||||||
|
|
|
|
|
|
|
|
|
(f) |
In December 2023, the central bank of |
|||||||
|
|
|
|
|
|
|
|
|
(g) |
In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the |
|||||||
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
||||
RECAST BUSINESS SEGMENT INFORMATION |
||||
($ in millions) |
||||
|
Three Months Ended |
|||
|
March 31, 2024 |
June 30, 2024 |
September 30,
|
December 31,
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
458 |
513 |
494 |
439 |
Selling, general and administrative |
301 |
309 |
289 |
287 |
Depreciation and amortization |
26 |
26 |
26 |
26 |
Other |
15 |
11 |
12 |
11 |
Global Architectural segment income |
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
628 |
773 |
755 |
695 |
Selling, general and administrative |
245 |
261 |
258 |
253 |
Depreciation and amortization |
34 |
34 |
31 |
33 |
Other |
26 |
24 |
23 |
22 |
Performance Coatings segment income |
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
1119 |
1164 |
1132 |
1083 |
Selling, general and administrative |
212 |
210 |
207 |
209 |
Depreciation and amortization |
52 |
53 |
52 |
49 |
Other |
67 |
61 |
64 |
60 |
Industrial Coatings segment income |
|
|
|
|
|
|
|
|
|
Total net sales to external customers |
|
|
|
|
Total segment income |
|
|
|
|
Corporate / Non-Segment Items |
|
|
|
|
Corporate / non-segment unallocated, exclusive of depreciation and amortization |
(76) |
(67) |
(72) |
(76) |
Corporate / non-segment depreciation and amortization |
(18) |
(11) |
(10) |
(11) |
Interest expense, net of interest income |
(13) |
(17) |
(19) |
(15) |
Business restructuring-related costs, net (a) |
(11) |
(4) |
— |
(362) |
Portfolio optimization (b) |
(6) |
(26) |
(10) |
(17) |
Legacy environmental remediation charges (c) |
— |
(20) |
— |
(4) |
Insurance recoveries (d) |
— |
— |
— |
4 |
Total income from continuing operations before income taxes |
|
|
|
|
|
Three Months Ended |
|||
|
March 31, 2023 |
June 30, 2023 |
September 30,
|
December 31,
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
495 |
543 |
512 |
472 |
Selling, general and administrative |
279 |
296 |
293 |
302 |
Depreciation and amortization |
25 |
25 |
26 |
25 |
Other |
16 |
16 |
10 |
13 |
Global Architectural segment income |
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
634 |
787 |
779 |
693 |
Selling, general and administrative |
230 |
246 |
234 |
256 |
Depreciation and amortization |
35 |
34 |
35 |
35 |
Other |
24 |
28 |
32 |
31 |
Performance Coatings segment income |
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
|
|
|
Cost of sales, exclusive of depreciation and amortization |
1201 |
1235 |
1187 |
1136 |
Selling, general and administrative |
201 |
217 |
214 |
238 |
Depreciation and amortization |
53 |
53 |
53 |
54 |
Other |
57 |
78 |
67 |
77 |
Industrial Coatings segment income |
|
|
|
|
|
|
|
|
|
Total net sales to external customers |
|
|
|
|
Total segment income |
|
|
|
|
Corporate / Non-Segment Items |
|
|
|
|
Corporate / non-segment unallocated, exclusive of depreciation and amortization |
(76) |
(86) |
(80) |
(88) |
Corporate / non-segment depreciation and amortization |
(8) |
(10) |
(17) |
(26) |
Interest expense, net of interest income |
(33) |
(36) |
(25) |
(13) |
Business restructuring-related costs, net (a) |
— |
(10) |
(15) |
(16) |
Portfolio optimization (b) |
— |
(7) |
(15) |
(31) |
Legacy environmental remediation charges (c) |
— |
— |
— |
(24) |
Insurance recoveries (d) |
9 |
— |
— |
7 |
Impairment and other related charges, net (e) |
— |
— |
— |
(160) |
|
— |
— |
— |
(20) |
Pension settlement charge (g) |
(190) |
— |
— |
|
Total income from continuing operations before income taxes |
|
|
|
|
|
Twelve Months Ended |
|
December 31, 2022 |
Net sales to external customers |
|
Cost of sales, exclusive of depreciation and amortization |
2,096 |
Selling, general and administrative |
1,058 |
Depreciation and amortization |
102 |
Other |
38 |
Global Architectural segment income |
|
|
|
Net sales to external customers |
|
Cost of sales, exclusive of depreciation and amortization |
2,813 |
Selling, general and administrative |
879 |
Depreciation and amortization |
142 |
Other |
111 |
Performance Coatings segment income |
|
|
|
Net sales to external customers |
|
Cost of sales, exclusive of depreciation and amortization |
5,062 |
Selling, general and administrative |
786 |
Depreciation and amortization |
207 |
Other |
269 |
Industrial Coatings segment income |
|
|
|
Total net sales to external customers |
|
Total segment income |
|
Corporate / Non-Segment Items |
|
Corporate / non-segment unallocated, exclusive of depreciation and amortization |
(219) |
Corporate / non-segment depreciation and amortization |
(51) |
Interest expense, net of interest income |
(113) |
Business restructuring-related costs, net (a) |
(72) |
Portfolio optimization (b) |
(10) |
Impairment and other related charges, net (e) |
(231) |
Total income from continuing operations before income taxes |
|
(a) |
Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of |
|
(b) |
Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of |
|
(c) |
Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income. |
|
(d) |
In the fourth quarter 2024 and the fourth quarter 2023, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. In the first quarter 2023, the company received reimbursement under its insurance policies for damages incurred at a southern |
|
(e) |
In the fourth quarter 2023, the company recorded impairment and other related charges due to a non-cash goodwill impairment recognized for the Traffic Solutions reporting unit as a result of its annual goodwill impairment test. The fair value of the Traffic Solutions reporting unit decreased primarily due to increases in the cost of capital (discount rate assumption) and declines in the reporting unit’s long-term forecast driven by challenges at its operations in |
|
(f) |
In December 2023, the central bank of |
|
(g) |
In the first quarter 2023, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the |
CATEGORY Corporate
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130788715/en/
PPG Media Contact:
Mark Silvey
Corporate Communications
+1-412-434-3046
silvey@ppg.com
PPG Investor Contact:
Alex Lopez
Investor Relations
+1-412-434-3466
alejandrolopez@ppg.com
investor.ppg.com
Source: PPG
FAQ
What was PPG's adjusted EPS for full-year 2024?
How much did PPG spend on share repurchases in 2024?
What is PPG's adjusted EPS guidance for 2025?
How much cash did PPG return to shareholders in 2024?
What was PPG's operating cash flow in 2024?
What major divestitures did PPG complete in 2024?
