PPG Industries, Inc. (NYSE:PPG) stock rose 5.90% (As on January 20, 11:09:40 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Cost of sales fell to $2.62 billion in the fourth quarter from $2.69 billion for the year-earlier period and $2.82 billion in the third quarter of 2022. The company said that supply chain disruptions kept moderating during the fourth quarter. However, it notes that it continued to be hit by lower levels of demand in China due to pandemic-related disruptions. 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. In Europe, aggregate industrial activity weakened sequentially, and sales volumes were down a mid-single-digit percentage; however, the quarterly operating earnings in that region were consistent with prior-year levels, driven by strong price realization and cost management.

Moreover, Performance Coatings net sales were down slightly versus the prior-year fourth quarter as lower sales volumes, the impact of divestitures, the wind down of business in Russia, and unfavorable foreign currency translation impacts were nearly all offset by selling price increases in all businesses. Excluding Asia, broad supply chain disruptions continued to moderate during the quarter, with the most significant remaining challenges impacting the aerospace coatings business. Industrial Coatings net sales increased modestly as higher selling prices across all businesses were partially offset by lower sales volumes, unfavorable foreign currency translation, and the wind down of business in Russia. Automotive original equipment manufacturer (OEM) coatings organic sales were up a low double-digit percentage due to higher global selling prices coupled with increased year-over-year sales volumes in Europe

PPG in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.22, beating the analysts’ estimates for the adjusted earnings per share of $1.13. The company had reported the adjusted revenue growth of 5 percent to $4.19 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $4.1 billion, according to FactSet. At year end, the company had cash and short-term investments totaling nearly $1.2 billion.

The paint maker expects to post adjusted earnings per share for the first quarter of 2023 in the range of $1.10 to $1.20, but that it sees aggregate sales volumes down by a mid-single-digit percentage on year in the same period.