PPG expects strong third quarter financial results

PPG announced that its adjusted diluted earnings per share for the third quarter of 2020 is expected to be in the range of $1.90 to $1.94.

This compares to adjusted diluted earnings per share of $1.67 for the third quarter of 2019.

In addition, the company now expects volumes to decline approximately 5% compared to the third quarter of 2019, which is below the lower end of the previously communicated guidance range (down 6% to 11%).

These results include strong year-over-year growth in PPG's global architectural coatings business.

The better-than-expected quarterly financial results are due to improved demand in several end-user markets, resulting in volume growth, as well as ongoing aggressive cost management initiatives.

These factors produced higher year-over-year operating margins in both of PPG's reportable business segments.


Michael H. McGarry, PPG's chairman and chief executive officer, said, "We expect to achieve record third quarter operating results due to improving demand trends and our ability to outperform in multiple end-user markets." "We expect operating margins of ten percent in both reporting segments for the quarter, reflecting volume growth and the continued execution of our cost management programs. We continue to have strong performance in our global Integrated Architectural Coatings and Packaging Coatings businesses, and today, demand for automotive OEMs and general industrial coatings is growing. Together, these businesses represent approximately 70 percent of our portfolio. In the rest of our businesses, demand trends continue to be mixed due to pandemic influences.


Michael H. McGarry concluded, "The global PPG team continues to impress me, and I want to thank our global employees for their outstanding execution and their ability to continue to work with our customers during these challenging times."


The company plans to release its third quarter 2020 financial results on October 19, 2020 after the U.S. stock market closes, and will host an earnings call on October 20, 2020 at 8:00 a.m. ET. At that time, the company will provide a more comprehensive update on its third quarter financial results and an update on its fourth quarter expectations.