What impact did PPG's cost management have on Q1 2024 results?

PPG's cost management had a significant impact on its Q1 2024 results, contributing to improved profitability despite softer sales volumes and unfavorable foreign currency translation. Here's a detailed analysis:

1. **Cost Reductions and Efficiency Improvements**: PPG implemented cost-cutting and restructuring strategies, achieving incremental cost reductions of $15 million in Q3 2023 and expecting an additional $10-$15 million in Q2 2023. These efforts likely carried over to Q1 2024, further reducing operating costs and enhancing profitability.
2. **Pricing Actions**: To offset the impact of cost inflation from raw materials, energy, and logistics, PPG raised selling prices across its business segments. This pricing discipline, combined with cost reductions, supported improved margins in the quarter.
3. **Manufacturing Efficiencies**: Despite high raw material costs, PPG decreased operating costs by over $500 million in 2023. Enhanced manufacturing efficiencies likely continued into Q1 2024, contributing to better financial performance.
4. **Restructuring Initiatives**: PPG's portfolio optimization and divestitures, such as the silicas products business, may have streamlined operations, reducing structural costs and focusing on more profitable segments, which could have positively influenced Q1 results.

In conclusion, PPG's proactive cost management, including restructuring efforts, pricing actions, and manufacturing efficiencies, significantly bolstered its Q1 2024 financial performance, enabling the company to navigate softer sales volumes and challenging market conditions with resilience.