(Reuters) – PPG Industries raised its full-year profit forecast on Thursday after beating second-quarter profit estimates as strong prices helped the industrial coatings maker offset lower demand.
While overall sales volumes were down, demand for automotive OEM coatings remained robust as the quarter witnessed higher vehicle production in the U.S. after two straight quarterly declines, boosting the industrial segment’s income by 60% to $250 million.
PPG, whose selling prices for performance coatings rose 6% year-over-year, said demand for global industrial materials was “lackluster,” after its expectations that sales volumes would hit 2019 pre-pandemic levels in the reported quarter did not come true.
Global production will likely remain “tepid” in the near term, CEO Tim Knavish said.
Still, PPG raised its outlook for annual earnings per share to between $7.28 and $7.48, from $6.95 to $7.25 forecast in April.
The company reported a profit of $2.25 per share for the quarter ended June 30, compared with analysts’ average estimate of $2.13 per share, according to Refinitiv data.
Quarterly net sales rose 3.9% to $4.87 billion from a year earlier. Analysts had expected net sales of $4.84 billion.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Vinay Dwivedi)