PPG reported that it had record first quarter net sales of $4.3 billion for the first quarter 2022. The result was 11% higher than the previous year. Sales were up due to higher selling prices (+10%), lower sales volumes (-3%), the addition of acquisition-related sales (+7%) and unfavourable foreign currency translation (-3%). The company also reported that its raw material costs were up 25% year-on-year and energy and transportation costs were also elevated.
The Performance Coatings segment, which includes refinish, had net sales of $2.57 billion, an increase of $251 million or 11%, due to selling price increases across all businesses and acquisition-related sales. While demand remained strong in most end-use markets, according to the company, raw material availability continued to constrain sales in many businesses, with the largest impacts in architectural coatings Americas and Asia Pacific, traffic solutions, and automotive refinish.
Automotive refinish net sales grew by a high-single-digit percentage with higher selling prices and sales volumes that continued to outpace industry growth. Aerospace sales volumes were up by a mid-teen-percentage compared to first quarter 2021 levels as after-market demand continued to recover; however, volumes remain nearly 20% below first quarter 2019 pre-pandemic levels.
Our organic sales growth of 7% was driven by continued selling price realisation and above-market sales volume performance in several of our end-use markets, most notably in automotive refinish and PPG-Comex architectural coatings.
On a two-year stacked basis, our selling prices are up about 12% over the first quarter 2020 as we continue to manage through persistent and broad inflation.
Sales also benefited from our recent acquisitions as Tikkurila and traffic solutions both delivered strong performances.”