Yahoo Finance PPG Falls as Demand From Autos, Airlines Remains Weak
By Dhirendra Tripathi
Investing.com – PPG Industries stock (NYSE:PPG) recouped some of the losses but still traded 1% lower Friday on worries surrounding demand for its paints from some industries such as automobiles and aviation.
About 40% of the business portfolio -- representing the automotive OEM, aerospace, and automotive refinish coatings businesses -- remains more than 15% below pre-pandemic sales volume levels, the company said, while holding out hopes of it being a catalyst for revenue and earnings growth in 2022 and 2023.
The company also warned that the cost of raw materials is expected to rise 25% to 30% in the first quarter on a year-on-year basis after they rose 30% in the fourth quarter.
It pegged corporate expenses to be $70 million for the quarter, rising from $60 million a year ago.
The company is now forecasting its aggregate net sales volumes down a mid-single-digit percentage on a year-on-year basis. PPG did not provide full-year guidance, citing economic uncertainty relating to the pandemic.
Fourth-quarter net sales rose 12% to a record $4.2 billion as an 8% increase in selling prices offset the 4% fall in volumes.
Profit per share fell 25% to $1.26, hurt by higher raw material costs, but was ahead of estimates.
Related Articles
PPG Falls as Demand From Autos, Airlines Remains Weak
Serbian government blasts green groups for scuttling Rio's lithium project
Commerzbank Q4 weighed down by provisions at Polish mBank unit
