PPG - PPG's stock slips on lackluster forecast for U.S. economy

2024-01-19 06:42:22 ET

PPG’s ( NYSE: PPG ) shares were down 1.4% in premarket trading Friday, a day after the maker of paints and coatings said its earnings will be less than the consensus forecast.

PPG estimated it will see adjusted earnings of $1.80 a share to $1.87 a share for the first quarter of 2024, compared with the average estimate of $1.91 a share among Wall Street analysts.

The company forecast adjusted earnings of $8.34 a share to $8.59 a share for the full year, compared with the consensus estimate of $8.44 a share.

“Looking ahead, while global industrial production remains at low absolute levels, we expect that demand for our businesses in China will continue to improve,” Tim Knavish, PPG chairman and chief executive, said in a statement. “In the U.S., we anticipate that economic conditions will remain subdued during the first half of 2024, and in Mexico, which is now our second largest country in terms of total net sales, we expect strong momentum to continue.”

He said the company expects Europe’s economy will stabilize at “current levels” for the year.

During the fourth quarter of 2023, net income fell to $90 million, or $0.38 a share, from $238 million, or $1.01 a share, a year earlier. Earnings adjusted for one-time items of $1.53 a share beat the average estimate of $1.50 among Wall Street analysts.

The company’s sales rose about 3.9% from a year earlier to $4.35 billion in the three-month period ended December 31. The consensus estimate was $4.27 billion.

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