PPG Industries misses estimates for fourth-quarter profit
30/01/2025 23:41
Jan 30 (Reuters) - PPG Industries PPG.N missed Wall
Street's fourth-quarter profit expectations on Thursday, due to
lower demand for its industrial and architectural coatings
products and weak prices.
U.S. mortgage rates rose over the year, weighing on the
homebuilding industry, which had previously benefited from a
scarcity of pre-owned houses for sale.
With fewer homes being built or bought, the demand for
construction materials such as paint and coatings has also
dropped, affecting the profits of companies such as PPG.
Additionally, U.S. factory activity ended the year on a soft
note.
Net sales in PPG's industrial coatings segment fell to $1.58
billion during the October-December quarter, compared with $1.73
billion a year earlier, hurt by a continuing trend of
year-over-year declines in industrial production in the United
States and Europe.
Total net sales for the company fell 5% to $3.7 billion in
the fourth quarter.
"We anticipate a slow start to 2025 as demand in Europe and
in global industrial end-use markets remains challenged," said
CEO Tim Knavish.
The Pittsburgh, Pennsylvania-based company posted an
adjusted profit of $1.61 per share for the quarter ended Dec.
31, compared with analysts' estimates of $1.65 per share,
according to data compiled by LSEG.
(Reporting by Vallari Srivastava and Mrinalika Roy in
Bengaluru; Editing by Mohammed Safi Shamsi)
((Srivastava.Vallari@thomsonreuters.com;))