PPG stock falls 3% as paint maker to raise prices to ease inflation pressure
Shares of PPG Industries Inc. (PPG) fell nearly 3% in the extended session Thursday after the paint and coatings maker reported fourth-quarter profit and sales above Wall Street expectations but said pandemic-related "disruptions" continue to impact production and sales, and it will increase prices to mitigate soaring costs. PPG said it earned $267 million, or $1.12 a share, in the quarter, compared with $272 million, or $1.14 a share, in the year-ago period. Adjusted for one-time items, PPG earned $1.26 a share. Sales rose 12% to $4.2 billion. Analysts polled by FactSet expected adjusted EPS of $1.18 on sales of $4 billion. "Looking ahead, while demand for PPG products remains strong, the heightened supply and COVID-related disruptions experienced in the fourth quarter are expected to continue in the first quarter of the year impacting our ability to manufacture and deliver product," the company said in a statement. "We expect raw-material costs to remain at an elevated level and we are experiencing additional inflation in other cost areas, including logistics and labor." PPG said it will raise prices in all business lines "to mitigate the incremental inflation, and we continue to aggressively manage all aspects of our cost structure, including actions to minimize the cost impacts of the current supply challenges." Shares of PPG ended the regular trading day down 1.2%.
(END) Dow Jones Newswires
January 20, 2022 16:31 ET (21:31 GMT)
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