Paint maker PPG raises prices again on higher energy prices, costs

Shares of PPG Industries Inc. rose 2% in the extended session Thursday after the paint and coatings maker reported first-quarter profit and sales above Wall Street expectations and said it will increase prices again to fend off rising prices for raw materials and other costs increases. PPG said it earned $18 million, or 8 cents a share, in the quarter, compared with earnings of $378 million, or $1.58 a share, in the year-ago period. Adjusted for one-time items, PPG earned $1.37 a share. Sales rose 11% to $4.3 billion, PPG said. Analysts polled by FactSet expected PPG to report adjusted EPS of $1.11 on sales of $4.2 billion. Raw-material costs are up 25% year-on-year, with energy and transportation costs "also elevated," the company said. Demand is expected to remain "solid," and supply disruptions are expected to persist, PPG said. "Given higher global energy prices, we are implementing further selling-price increases in all businesses, and our commercial processes are enabling closer to real-time pricing relative to inflation," the company said. PPG had increased its prices in January. "We are also developing further cost mitigation actions in the event of broader economic slowdowns. The continuing crisis in Europe and pandemic-related restrictions in China have increased the level of near-term economic uncertainty," the company said. PPG guided for second-quarter adjusted EPS between $1.60 and $1.90. Sales volumes are seen down by a low-to-mid-single-digit percentage, it said. Shares of PPG ended the regular trading day up 1.1%.

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