PITTSBURGH - PPG Industries (NYSE:PPG), a leading global supplier of paints, coatings, and specialty materials, announced today that its board of directors has approved a new $2.5 billion share repurchase program. This new authorization is effective immediately and is open-ended, granting management the flexibility to determine the timing and conditions of the buybacks.
The new repurchase plan comes on top of an existing program, which was initiated in December 2017 and still had around $860 million left as of March 31, 2024. The company will conduct repurchases in compliance with securities laws, either on the open market or through privately negotiated transactions. The timing and volume of repurchases will be subject to market conditions, the company's capital needs, including acquisition strategies, and other relevant factors.
PPG, headquartered in Pittsburgh, has a presence in over 70 countries and reported net sales of $18.2 billion for the year 2023. The company caters to a diverse range of markets, including construction, consumer products, industrial sectors, transportation, and aftermarkets.
The announcement of the stock repurchase program is considered a forward-looking statement and is subject to various risks and uncertainties, including the company's ability to execute the program as planned. These forward-looking statements are based on current expectations and projections about future events.
Investors are cautioned that actual outcomes may differ significantly from those anticipated, due to various factors detailed in PPG's periodic filings with the Securities and Exchange Commission. PPG has stated that it does not have any obligation to update or revise any forward-looking statements, whether as a result of new information or future events.
This news is based on a press release statement from PPG Industries.
InvestingPro Insights
As PPG Industries (NYSE:PPG) embarks on its new $2.5 billion share repurchase program, the company's financial stability and shareholder commitment are reflected in its impressive track record of dividend payments. With a history of raising its dividend for 53 consecutive years, PPG demonstrates a reliable return to its investors, a sentiment echoed in one of the InvestingPro Tips which highlights the company's ability to maintain dividend payments for 54 consecutive years.
InvestingPro data also sheds light on PPG's market performance and valuation. The company boasts a market capitalization of $31.79 billion, illustrating its significant presence within the industry. Additionally, PPG's Price/Earnings (P/E) Ratio stands at 25.12, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 20.55. This adjusted P/E ratio suggests a more favorable valuation when considering the company's earnings over the past year.
Furthermore, PPG's stock has been noted for its low price volatility, making it potentially an attractive option for investors seeking stability in their portfolios. This is complemented by the company's Price/Book ratio of 4.07 for the last twelve months as of Q4 2023, which, although high, indicates that investors may be willing to pay a premium for PPG's equity, possibly due to the company's consistent profitability and strong market position.
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