PPG raises Q1 adjusted EPS view to $1.52-$1.58 from $1.10-$1.20, consensus $1.18

PPG announced that Q1 adjusted earnings per diluted share, or EPS, is expected to be between $1.52 and $1.58, which exceeds the company’s previously communicated guidance of $1.10 to $1.20. The company also noted stronger-than-expected demand in PPG Comex, along with U.S. architectural coatings where the company benefitted from a recent customer win that aided quarterly results. Sales volumes were also better in China due to fewer pandemic disruptions than initially forecast. In addition, the company reported that in March, PPG purchased group annuity contracts that transferred pension benefit obligations for certain of the company’s retirees in the U.S. to third-party insurance companies, resulting in an estimated non-cash pension settlement charge of approximately $191M, or 61c per share. The expected first quarter 2023 adjusted EPS noted above excludes the impact of this pension settlement charge. A reconciliation of expected adjusted EPS to expected reported EPS is included below.