PPG Industries Inc. forecast its third-quarter earnings per share at between 85 and 90 cents, excluding a previously announced one-time charge of 2 to 3 cents a share to rationalise the company“s new…
PPG Industries Inc. forecast its third-quarter earnings per share at between 85 and 90 cents, excluding a previously announced one-time charge of 2 to 3 cents a share to rationalise the company“s new PPG Auto Glass venture. The forecast pushed the stock of the Pittsburgh-based paint and glass maker to US$ 38, its lowest price since May 1995, in early afternoon trading. The stock ended the day on the New York Stock Exchange at US$ 39-3/4, off 1/4 for the session, on composite volume of 943,000 shares. The company released its view in response to analyst estimates reported by First Call/Thomson Financial that ranged from 89 cents to US$ 1.02 a share, spokesman John Ruch said. The consensus estimate was 95 cents. Per-share earnings in the third quarter of 1999 were 89 cents, excluding one-time acquisition-related charges. “Although sales and earnings for the quarter continue to benefit from recent acquisitions, a slowdown in automotive, construction and some industrial markets have reduced demand for our products,” said chief executive Raymond LeBoeuf. “This has slowed growth below expectations,” Ruch explained. “Also, earnings continue to be pressured by ongoing increases in energy and raw material costs,” LeBoeuf continued in the company“s statement. “Several price increases have been implemented, and additional increases will be implemented in the fourth quarter.” “While we expect to improve our earnings substantially from last year, if current trends continue we are unlikely to exceed our record earnings per share from operations of US$ 4.13 (recorded in 1998),” LeBoeuf said. Prior to the statement, analysts saw PPG earning US$ 1.01 per share in the fourth quarter, up from 93 cents last year. They were projecting full year earnings of US$ 4.15 compared to 1999“s US$ 3.68.