PPG aims to maintain growth momentum in coatings industry

PPG aims to maintain growth momentum in coatings industry

Outlines growth framework, financial expectations and sustainability goals

  • By ICN Bureau | May 24, 2023

PPG today announced the company’s growth framework to deliver Purposeful, Profitable Growth. The company shared details of its organic growth framework and expectations for organic sales and adjusted earnings per share (EPS) growth.

In addition, the company communicated the validation of its decarbonization targets by the Science-Based Targets initiative (SBTi). PPG president and chief executive officer, Tim Knavish, is presenting these updates during an investor briefing today at the New York Stock Exchange.

“PPG is poised to leverage our diverse business portfolio to deliver industry-leading growth,” said Knavish. “Going forward, we will intentionally invest in focused growth opportunities that enhance our customers’ productivity and sustainability, elevate our customer relationships and expand PPG’s technology leadership positions in the coatings industry. We will continue our heritage of cost management, consistent cash generation and focus on returning cash to shareholders, including through increased annual dividends.”

The framework focusses on investment towards leading positions within advantaged areas, Partnering with customers to provide industry-leading innovation, Modernizing, simplifying and digitizing operations, Delivering consistent high-cash conversion and continuing PPG’s legacy of disciplined capital allocation.

The company also communicated the following financial expectations:

  • Establishing annual 2% to 4% organic sales growth
  • Annual adjusted EPS growth of 8% to 12% through 20261
  • Free cash flow of approximately $1 billion per year

Knavish added, “Solutions that generate productivity and sustainability benefits for our valued customers are a key piece of our growth strategy. We’ve made strong progress against our 2025 sustainability goals and now are pleased to introduce ambitious 2030 Environmental, Social and Governance (ESG) targets, including a sales target for sustainably advantaged products and greenhouse gas (GHG) emissions reduction targets validated by the SBTi.”

PPG’s 2030 ESG targets include 50% of sales from sustainably advantaged products, 50% reduction in scope 1 and 2 GHG emissions relative to 2019 and 30% reduction in scope 3 GHG emissions relative to 2019

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