PPG says higher prices, cost cuts not enough to cover rising expenses

|About: PPG Industries, Inc. (PPG)|By:, SA News Editor

PPG Industries (PPG -0.2%) wobbles between small gains and losses in early trade after reporting in-line Q3 results and reaffirming guidance for Q4 earnings, seeing EPS of $1.03-$1.13 vs. $1.15 analyst consensus estimate.

Q3 revenue rose 1.1% Y/Y to $3.82B while the cost of goods sold rose 7.1%, underscoring the company's warning last week that it was paying more for the chemicals it uses to make paint and coatings, as well as for oil, shipping and labor; the outlook prompted a 10% drop in PPG shares.

PPG says it expects continued volatility in demand for its products, and forecasts global economic growth to remain positive but saw increasing industrial production volatility as well as inconsistent growth in emerging markets as Q3 progressed.

PPG also says it repurchased ~$250M of its shares during Q3 and expects to use $1B on acquisitions and share repurchases in Q4.

Also: PPG to acquire SEM Products (Oct. 18)

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