PPG Industries Inc. reported a 1.9% decline in third-quarter earnings from operations and said higher raw-materials costs hurt gross-profit margins.
The Pittsburgh manufacturer of paints, glass, fibe…
PPG Industries Inc. reported a 1.9% decline in third-quarter earnings from operations and said higher raw-materials costs hurt gross-profit margins. The Pittsburgh manufacturer of paints, glass, fiberglass and chemicals warned last month it would would miss profit forecasts because of sharp increases in eenergy and raw material costs. PPG (PPG) posted net income of US$ 150 million, or 86 cents a share, compared with US$ 99 million, or 56 cents a share, in the year-earlier period. Revenue increased 6.3% to US$ 2.08 billion from US$ 1.95 billion. However, excluding charges in both periods, the company said it would have posted earnings of US$ 153 million, or 88 cents a share, compared with US$ 156 million, or 89 cents a share, in the 1999 third quarter. The mean estimate of analysts surveyed by First Call/Thomson Financial was for a profit of 87 cents a share. In September, PPG said it expected to post earnings of between 85 cents and 90 cents a share, excluding charges. Before the warning, analysts were looking for earnings of 95 cents a share. PPG said softening demand has slowed volume growth. The company“s volume growth increased sales revenue just slightly more than 1%, compared with early 5% for the first half. Sales in PPG“s coatings segment increased 5%, while sales rose 8% in the glass unit and were up 7% in the chemicals division. PPG has about 120 manufacturing locations in 23 countries.