PPG Industries, Inc. (NYSE: PPG) shares fell after the company issued weak forecast for the third quarter.
The company announced that its third-quarter 2018 reported earnings per diluted share from continuing operations are expected to be in the range of $1.47 to $1.51 and adjusted earnings per diluted share from continuing operations are expected to be in the range of $1.41 to $1.45.
Net sales for the third quarter 2018 are expected to be approximately $3.8 billion. Third-quarter 2017 net sales were $3.8 billion and reported and adjusted earnings per diluted share from continuing operations were $1.52. The adjusted tax rate for the third quarter 2018 is expected to be in the range of 20% to 21%.
"In the third quarter, we continued to experience significant raw material and elevating logistics cost inflation, including the effects from higher epoxy resin and increasing oil prices," said Michael McGarry, PPG CEO
"These inflationary impacts increased during the quarter and, as a result, we experienced the highest level of cost inflation since the cycle began two years ago."
PPG will announce its third-quarter 2018 financial results in detail on Thursday, Oct. 18 and conduct a teleconference at 2:00 p.m. Eastern Time.
With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $14.7 billion in 2017. The company serves customers in construction, consumer products, industrial and transportation markets and after-markets.
Shares dropped $9.33, or 8.5%, to $100.25
