PPG Industries Inc (NYSE:PPG) has raised its full-year profit guidance as the manufacturer of specialty plastic solutions handed down a second-quarter earnings beat as higher prices offset weaker industrial demand.
For fiscal 2023, the company now expects adjusted earnings per share (EPS) in a range of $7.28 to $7.48 from its earlier forecast of $6.95 to $7.25.
For the upcoming quarter, 3Q, PPG expects adjusted EPS of $1.85 to $1.95 and its sales to rise by a low single-digit percentage year-over-year.
For 2Q, PPG reported adjusted EPS of $2.25, up 24% from EPS of $1.81 in the year-ago quarter and above the consensus expectations of $2.13 per Refinitiv data.
Revenue of $4.87 billion, a record quarter, also exceeded analysts’ forecast of $4.84 billion.
The company’s CEO Tim Knavish noted that while overall global industrial demand was lackluster during the quarter, PPG achieved 4% growth in sales led by higher selling prices and strength in its aerospace coatings and automotive OEM coatings businesses.
Looking ahead, he expects global industrial production will remain “tepid.”
PPG shares traded modestly lower following its results, down 0.2% at US$149.50 before the opening bell in New York on Friday.
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