: Paint and coatings maker PPG Industries warns of ‘continued tepid’ industrial demand and lower home sales, and stock falls
Paint and coatings maker PPG Industries Inc. PPG on Thursday reported second-quarter results that beat Wall Street’s estimates and raised its full-year profit forecast, but management warned of continued “tepid” industrial production and lower home sales. PPG reported net income of $490 million, or $2.06 a share, compared with $443 million, or $1.86 a share, in the same quarter last year. Revenue rose 4% to $4.87 billion, up from $4.69 billion in the prior-year quarter. Adjusted for acquisition and restructuring costs, PPG earned $2.25 a share. Analysts polled by FactSet expected PPG to report adjusted earnings per share of $2.14, on sales of $4.84 billion. The company also raised its full-year adjusted earnings per share forecast to $7.28 to $7.48 per share, compared with FactSet forecasts for $7.30. “Looking ahead, we anticipate that the global macroeconomic environment will remain generally consistent with the second quarter including continued tepid global industrial production, along with some incremental slowing in U.S. architectural residential repaint due to significantly lower existing home sales,” Chief Executive Tim Knavish said in a statement. Shares fell 1.9% after hours.
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