(Reuters) - PPG Industries (NYSE:PPG) beat Wall Street estimates for fourth-quarter profit on Thursday, as the industrial coatings maker benefited from increased sales of vehicles as well as strength in its aerospace segment.
The Pittsburgh, Pennsylvania-based firm reported an adjusted profit of $1.53 per share for the quarter ended Dec. 31, compared with the average analyst estimate of $1.50, according to LSEG data.
PPG also forecast adjusted profit to be in the range of $8.34 to $8.59 per share for 2024, higher than the $7.67 reported for 2023.
The U.S. auto sector shrugged off a costly auto strike at the tail end of 2023 to record its best year since the pandemic, with sales rising to 15 million vehicles from 13.9 million in 2022.
Net sales in PPG's industrial coatings segment rose to $1.74 billion in the quarter from $1.70 billion a year earlier, helped by higher selling prices and sales volumes in the automotive OEM segment, along with strong performance in the Asia-Pacific region and Mexico.
The firm's adjusted net income jumped 27% to $363 million from $286 million in the fourth quarter of 2022.
"(The company) benefited from solid volume growth in China, demand stabilization in Europe and continued growth in several key end-use markets such as aerospace, automotive original equipment manufacturer (OEM) and protective coatings," CEO Tim Knavish said in a statement.
The company said it expects its first-quarter adjusted profit to be in the range of $1.80 to $1.87 per share. It had reported $1.82 for the quarter a year earlier.