PPG Industries reports Q3 2018 adjusted EPS
PPG Industries (PPG) announced its Q3 2018 earnings before the market opened on October 18. It reported adjusted EPS of $1.45, a decline of 4.6% over Q3 2017. Despite the increase in raw material prices, PPG managed to meet analysts’ estimate of $1.45.
PPG’s adjusted EPS was primarily driven by the following:
- PPG’s higher revenue growth was helped by higher prices.
- During the quarter, PPG bought back $250 million worth of shares. At the end of Q3 2018, its common outstanding shares were 243.6 million compared to 258.2 million in Q3 2017.
- PPG’s restructuring program helped it save $20 million in the quarter. Its selling, general, and administrative expenses have declined as a percentage of sales. It reported SG&A expenses as a percentage of sales of 22.7% compared to 23.7%, a decrease of 100 basis points.
The increase in raw material prices had an adverse impact on PPG’s adjusted EPS. Its cost of goods sold as a percentage of sales was reported at 59% compared to 55.7% in Q3 2017, an increase of 330 basis points year-over-year.