• Thu. May 12th, 2022

Paint maker PPG raises prices again due to rising prices and energy costs

ByRandall B. Phelps

Apr 21, 2022

Shares of PPG Industries Inc. PPG,
+1.10%
increased 2% in the extended session on Thursday after the paint and coatings reported earnings manufacturer in the first quarter and sales above Wall Street expectations and said it will raise prices further to push higher prices raw material and other cost increases. PPG posted a profit of $ 18 million or 8 cents per share, in the quarter, compared with a profit of $ 378 million or $ 1.58 per share, in the period of the previous year. Adjusted for non-recurring items, PPG earned $ 1.37 per share. Sales increased 11% to $ 4.3 billion, said PPG. Analysts polled by FactSet expected PPG to report EPS adjusted $ 1.11 on sales of $ 4.2 billion. Raw material costs increased by 25% compared to the previous year, with the energy and transportation costs “too high,” the company said. Demand should remain “solid” and supply shortages are expected to persist, said PPG. “Given the global prices of higher energy, we implement further increases in selling prices in all businesses, and our business processes allow close to real-time prices relative to inflation,” said the company said. PPG has increased its prices in January. “We are also developing new mitigation costs in case of broader economic slowdown. The continuing crisis in Europe and the restrictions in the event of China-related pandemic have increased the level of short-term economic uncertainty, “the company said. PPG guided second quarter adjusted EPS between $ 1.60 and $ 1.90. Sales volumes are seen by a small percentage to mid-single digits, he said. PPG shares ended the regular trading day up 1.1%.