PPG dips after guiding for below-consensus Q4 earnings

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PPG Industries (NYSE:PPG) -0.8% post-market Wednesday after posting roughly in-line Q3 adjusted earnings and revenues, while guiding Q4 earnings below expectations, as it expects softer demand in Europe and China will persist.

PPG (PPG) said it achieved record sales in Q3 of $4.47B, driven by continued selling price realization, resulting in a 12%-plus increase in selling prices compared with the year-ago quarter and an 18% increase on a two-year stacked basis, aided by record sales in the PPG Comex and global automotive refinish businesses.

For Q4, PPG (PPG) forecasts adjusted EPS of $1.05-$1.20, below $1.24 analyst consensus estimate, with aggregate sales volumes down Y/Y by a mid-single-digit percentage.

Due to the reduced economic activity, PPG (PPG) said is targeting $70M in annualized savings through an additional cost restructuring program.

The company also appointed current COO Tim Knavish as its new CEO effective January 1, succeeding Chairman and CEO Michael McGarry, who will become Executive Chairman.

PPG's (PPG) stock price return shows a 33% loss YTD and a 28% decline during the past year.