2. PPG Industries
Pittsburgh
412-434-3131
President/CEO: Tim Knavish
2022 Coatings Sales (Net): $17.652 billion
At PPG, team members work every day to develop and deliver the paints, coatings, and specialty materials that customers have trusted for 140 years. Through dedication and creativity, they solve customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, the company operates and innovates in more than 75 countries and reported record net sales of $17.65 billion in 2022, up about 5% versus the prior year. PPG serves customers in the construction, consumer products, industrial and transportation markets, and aftermarkets.
Organic sales were higher by 8%, driven by higher selling prices. Net income in 2022 decreased versus 2021 due to raw material cost inflation, lower sales volumes, unfavorable foreign-currency translation, and higher manufacturing costs related to supply and labor disruptions, partially offset by higher selling prices, restructuring cost savings and acquisition-related synergies.
In 2022, the company paid $570 million in dividends. Capital expenditures totaled about $520 million, which was higher than the prior year due to more normalized spending. The company had about $1 billion remaining on its current share repurchase authorization at the end of 2022. The higher corporate and interest expenses are projected to decrease reported and adjusted EPS by about $0.20 on a year-over-year basis.
Notes: Key 2022 PPG milestones included:
- PPG and The Home Depot, HD Supply expanded their relationship with the launch of a professional paint assortment at all U.S. locations.
- New commitments to employee diversity, equity and inclusion (DEI), and launched the first-ever PPG DEI report.
- The company opened a powder coatings research, customer application center in Milan, Italy.
- PPG acquired Arsonsisi’s powder coatings manufacturing business.
- The company strengthened its commitment to setting science-based targets to reduce GHG emissions in line with climate science through the Science Based Targets initiative (SBTi).
- Achieved industry first with launch of PPG ENVIROCRON™ LUM retroreflective powder coating.
- Launched PPG INNOVEL® PRO, an enhanced internal spray coating that uses no bisphenol-A (BPA) or bisphenol starting substances, and provides more robust application properties for infinitely recyclable aluminum beverage cans.
- Increased U.S. aerospace products manufacturing output to meet rising demand.
- Achieved 39% of sales from sustainably advantaged products.
- Achieved 16% reduction in GHG emissions from the 2017 baseline.
- Achieved 21% reduction in quantity of waste generated from the 2017 baseline.
- Achieved 16% reduction in waste disposal intensity from the 2017 baseline.
In addition, as part of its community engagement efforts, PPG and the PPG Foundation invested $16.2 million in 2022 to support more than 650 community partners and programs across the world. Since 2015, PPG has completed 473 COLORFUL COMMUNITIES® projects in 50 countries, positively impacting more than 8.2 million people. Throughout July 2022, the Colorful Communities program transformed 36 schools and learning spaces through the New Paint for a New Start campaign. More than 1,000 PPG volunteers took part in the initiative, which benefited more than 23,000 students and educators.
Source: : Company contact, Annual Report