Stock Monitor: Sensient Technologies Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 26, 2018 / If you want access to our free earnings report on PPG Industries, Inc. (NYSE: PPG) ("PPG"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PPG. The Company reported its financial results on July 19, 2018, for the second quarter of the fiscal year 2018 (Q2 FY18). The global supplier of paints, coatings, and specialty materials surpassed analysts' estimates for revenues and earnings in Q2 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, PPG Industries most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the second quarter ended June 30, 2018, PPG's revenues advanced 8.6% to $4.13 billion compared to $3.80 billion in the second quarter of the fiscal year 2017. The Company's reported revenue numbers exceeded analysts' estimates of $4.12 billion.
During Q2 FY18, PPG incurred cost of sales, exclusive of depreciation and amortization, of $2.38 billion versus $2.08 billion in Q2 FY17, increasing 2% on a y-o-y basis. The Company's income from continuing operations declined by 25.3% to $375.0 million in the reported quarter versus $502.0 million in the year ago comparable period.
For the reported quarter, PPG's net income dropped 25.2% to $371.0 million compared to $496.0 million in the year ago corresponding period. The Company's adjusted net income from continuing operations was $468.0 million in Q2 FY18, marginally up by 0.6% from $465.0 million in Q2 FY17.
PPG's posted earnings per share (EPS) of $1.51 in the reported quarter compared to $1.92 in the year ago same period, decreasing 21.8% on a y-o-y basis. The Company's adjusted EPS increased 5.6% to $1.90 in Q2 FY18 compared to $1.80 in Q2 FY17, beating analysts' estimates of $1.89.
Segment Details
PPG operates through two reporting segments, namely: (i) Performance Coatings; and (ii) Industrial Coatings.
PPG's Performance Coatings segment's revenues surged 8.7% to $2.50 billion in Q2 FY18 compared to $2.30 billion in Q2 FY17, primarily due to higher sales volumes, higher selling prices, and a favorable foreign currency translation. The segment's income soared 5.7% to $428.0 million in the reported quarter compared to $405.0 million in the year ago same period, and was driven by improved sales volumes and higher selling prices, but partially offset by raw material and logistics cost inflation.
During Q2 FY18, PPG's Industrial Coatings segment's generated total sales of $1.63 billion compared to $1.50 billion in Q2 FY17, increasing 8.5% on a y-o-y basis. The growth was due to higher sales volumes, higher selling prices, acquisition-related sales, and a favorable foreign currency translation. The segment's income declined 15.5% to $223.0 million in Q2 FY18 compared to $264.0 million in Q2 FY17, due to elevated raw material and logistics cost inflation, which was partly offset by higher selling prices.
Cash Matters
As of June 30, 2018, PPG's cash and cash equivalents stood at $1.02 billion compared to $1.57 billion as of June 30, 2017. The Company had a long-term debt of $5.05 billion as of June 30, 2018, versus $4.13 billion as of December 31, 2017. For the six months ended June 30, 2018, the Company generated a cash inflow from operating activities of $131.0 million compared to $432.0 million in the six months ended June 30, 2017. The Company incurred a capital expenditure, including acquisitions net of cash acquired, of $216.0 million in Q2 FY18. For the six months ended June 30, 2018, the Company paid $222.0 million in dividends and repurchased $1.06 billion of its outstanding common stock.
Outlook
Going forward, PPG does not anticipate any break from inflationary cost pressures in the third quarter of 2018. The Company expects aggregate global economic growth to remain positive with end-use market activity comparable to the second quarter, and adjusted for traditionally lower seasonal demand. The Company remains committed to deploy $2.4 billion of cash in 2018 on acquisitions and share repurchases as it focuses on shareholder value creation. The Company has initiated a new restructuring program targeting about $85.0 million in annual cost savings.
Stock Performance Snapshot
July 25, 2018 - At Wednesday's closing bell, PPG Industries' stock climbed 3.05%, ending the trading session at $109.28.
Volume traded for the day: 1.93 million shares, which was above the 3-month average volume of 1.92 million shares.
Stock performance in the last month - up 3.97%; previous three-month period - up 1.30%; and past twelve-month period - up 2.03%
After yesterday's close, PPG Industries' market cap was at $27.05 billion.
Price to Earnings (P/E) ratio was at 22.60.
The stock has a dividend yield of 1.65%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry. This sector was up 1.0% at the end of the session.
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