Similar to Sherwin-Williams a few weeks ago, PPG reported record sales in 2022, thanks in part to raising prices. The Pittsburgh-based coatings manufacturer reported sales of $17.7 billion (compared to $22.15 billion for S-W). PPG net sales were $4.2 billion, up 5%, despite “more severe commercial and supply disruptions in China than original guidance,” according to the CEO.
“We continued to make good progress on our focus to achieve full operating margin recovery, as year-over-year earnings improved despite more acute pandemic-related demand disruptions in China,” said PPG President and CEO Tim Knavish. “Overall sales volumes declined 5% year over year as manufacturing activity slowed in most regions, including Asia Pacific where volumes were down a low double-digit percentage primarily due to the pandemic-related impacts in China. As anticipated, demand remained soft in global architectural do-it-yourself (DIY) coatings.”
PPG raised prices in 2022, according to an article in MarketWatch, to offset significant raw materials price increases, as well as higher energy and transportation costs. “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 in the spring of 2022.
"Looking ahead, we remain highly focused on building further momentum to restore margins in line with our historical profile. In the first quarter, we will continue to prioritize supporting our customers through superior service and products, executing our cost-savings initiatives, and optimizing inventory," said Knavish.