PPG’s shares rose 4.4% after earnings, as investors appeared to favor record third-quarter adjusted EPS of $2.25, 5% organic sales growth and margin expansion in key segments. Results were not uniformly strong: European architectural volumes declined, and fourth-quarter organic sales outlooks called for modest growth.
- Net sales increased 7% year over year to $4.4 billion; organic sales rose 5%, including 2% volume growth. Adjusted EPS was up 6% to a third-quarter record of $2.25, with adjusted EBITDA margin above 18%.
- Performance Coatings organic sales grew 8%, including 5% volume growth. Segment EBITDA rose 21%, and margin expanded 220 basis points to 23.9%.
- Global Architectural Coatings organic sales increased 2% as higher prices offset lower European volumes. Segment EBITDA grew 19%, with margin up 300 basis points to 24%.
- Aerospace delivered double-digit organic sales growth, with its order backlog near $300 million. PPG expects more than $2 billion in aerospace sales this year and plans over $500 million in capacity and productivity investments.
- Management expects fourth-quarter organic sales to range from flat to low-single-digit growth in Global Architectural Coatings, and low- to mid-single-digit growth in Performance Coatings; both segments expect year-over-year margin expansion.
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