The company completed the sale of its remaining Russian business in Q1 2025. This follows the sale of the global silicas business and the traffic solutions business in Argentina in 2024. These divestitures are impacting net sales.

Total capital spending is expected to be approximately $725 million to $775 million in 2025 in support of future organic growth opportunities.

Portfolio optimization includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain.

Aggregate restructuring savings were approximately $15 million in the first quarter 2025. Total restructuring savings are expected to be $75 million in 2025.

Selling, general and administrative expense decreased $12 million primarily due to the favorable impact of foreign currency translation and cost control measures, partially offset by overhead cost inflation.

The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or self-help cost actions.

Net sales and income before income taxes were negatively impacted by unfavorable foreign currency translation. The U.S. dollar strengthened against the currencies of many countries where PPG operates.

A Brazilian court entered an award against PPG (which remains the nominal defendant) that with prejudgment interest, fees, and costs would total over $700 million. Westlake never substituted itself into the case in place of PPG or otherwise informed the Brazilian court that Westlake is the real party in interest and assumed all liability for the matter.

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought.

Global Architectural Coatings net sales decreased due to unfavorable foreign currency translation, lower sales volumes, and divestiture-related sales, partially offset by higher selling prices.

In China, PPG automotive OEM sales benefited from increased industry automotive retail sales activity and export growth. The Company expects to benefit from its strong position in China and the realization of additional share gains later in the year.

Packaging coatings organic sales increased by a low single-digit percentage compared to the prior year with higher sales volumes in Europe, Latin America and Asia Pacific partially offset by lower index-based prices. PPG sales growth is outpacing the industry reflecting prior year and current year share gains.

In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 6, "Business Restructuring" in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs.

Automotive refinish coatings organic sales increased a low single-digit percentage versus the prior year. In the U.S., sales volumes improved with benefits from share gains more than offset by lower industry collision claims. PPG expects to benefit in the second quarter 2025 from price increases for our technology-advantaged refinish products and services.

The Company remains focused on debottlenecking and further expanding manufacturing capabilities to drive further volume and earnings growth.

Automotive refinish coatings organic sales increased a low single-digit percentage versus the prior year. In the U.S., sales volumes improved with benefits from share gains more than offset by lower industry collision claims. PPG expects to benefit in the second quarter 2025 from price increases for our technology-advantaged refinish products and services.

Segment income was $274 million, an increase of 9% versus the prior year, primarily due to higher selling prices stemming from sales of advantaged products and digital technology subscriptions and higher sales volumes.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided.

The company repurchased 3,205,395 shares at an average price of $119.04 per share.

Total capital spending is expected to be approximately $725 million to $775 million in 2025 in support of future organic growth opportunities.

In March 2025, PPG completed a public offering of €900 million 3.250% Notes due 2032. Refer to Note 7, "Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

PPG is involved in environmental remediation activities and has reserves for environmental contingencies associated with PPG's former chromium manufacturing plant in Jersey City, New Jersey, glass and chemical manufacturing sites, and for other environmental contingencies.

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio where PPG has completed a Facility Investigation and Corrective Measure Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program.

We expect cash outlays related to these actions of approximately $100 million in 2025.

PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs.

In the second quarter, consumer sentiment in Europe is expected to continue to stabilize.

Project spending in Mexico is expected to resume in the coming quarters.