PPG Industries, Inc. (NYSE:PPG) stock rose 3.60% (As on July 22, 11:44:17 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. Organic sales growth was of 8%, driven by higher selling prices, which are up by 15% on a two-year stack basis. The sales growth was achieved despite softening consumer demand in Europe, significant COVID-19-related demand disruptions in China and unfavorable currency translation. The organic sales grew 8% as the company continued to deliver above-market volume performance in several end-use markets, including all-time quarterly sales records in the automotive refinish coatings, PPG-Comex and traffic solutions businesses. In addition, the aerospace coatings business sales volumes grew by a double-digit percentage with strengthening momentum each month, although overall industry demand remains well below pre-pandemic levels.

PPG in the second quarter of FY 22 has reported the adjusted earnings per share of $1.81, beating the analysts’ estimates for the adjusted earnings per share of $1.75, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 8 percent to $4.69 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $4.75 billion.

For the current quarter ending in October, PPG Industries expects its per-share earnings to range from $1.75 to $2. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.42.

Looking ahead, in most major regions and end-use markets underlying demand for PPG products is expected to remain solid. The company anticipates strong sequential growth in Asia due to higher industrial production compared to the second quarter. Positive growth trends are generally expected to continue in North America. In Europe, the company expects economic conditions to remain soft, including normal seasonal demand trends. The company has already begun to implement cost mitigation actions in Europe and have contingency plans ready to deploy in the event of a broader economic slowdown. In the second half of the year, the company expects several of the larger businesses, including automotive original equipment manufacturer (OEM) and aerospace coatings, to deliver strong growth due to large current supply deficits and low inventories in these end-use markets. Importantly, the company expects that the sequential quarterly momentum on operating margin improvement will continue in the third quarter as the company work back to the historical margins, and the adjusted earnings will increase on a year-over-year basis.