PPG Industries, Inc. has recently released its 10-K report, providing an insight into its financial condition and operations. PPG Industries, Inc. is a leading manufacturer and distributor of paints, coatings, and specialty materials, operating through two segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment offers a wide range of products for automotive, commercial transport, and specialty coatings, while the Industrial Coatings segment provides coatings, adhesives, sealants, and metal pretreatments for various industries.
The 10-K report highlights the company's financial performance for the years ended December 31, 2024, 2023, and 2022. Notably, PPG reported net sales of approximately $15.8 billion in 2024, representing a 2% decrease compared to the prior year. This decline was attributed to lower sales volumes and unfavorable foreign currency translation and divestitures. Despite this, the company reported an increase in income before income taxes, reaching $1,852 million in 2024, a $162 million increase from the prior year. This increase was primarily due to lower raw material costs, lower performance-based compensation costs, and restructuring savings.
The report also provides a breakdown of net sales by region, revealing that sales in the United States and Canada, Europe, Middle East, and Africa (EMEA), Asia Pacific, and Latin America experienced fluctuations over the years, influenced by factors such as sales volumes, foreign currency translation, and divestitures.
Cost of sales, exclusive of depreciation and amortization, decreased by 4.4% in 2024 compared to 2023, primarily due to moderating raw material costs and lower sales volume. Selling, general and administrative expenses decreased by 0.3% in 2024 compared to 2023, driven by restructuring cost savings and lower performance-based compensation.
The report also delves into other significant factors impacting the company, such as business restructuring initiatives, impairment and related charges, interest expenses, and the effective tax rate. It outlines the company's resilience in a challenging industrial macroeconomic environment, with a focus on growth, cost reduction, and strategic initiatives to strengthen the business.
The market has reacted to these announcements by moving the company's shares 0.6% to a price of $117.52. Check out the company's full 10-K submission here.
