PPG Industries Inc. of Pittsburgh today lowered its forecast of fourth quarter earnings about 50 percent to a range of 35 cents to 45 cents a share because of the "accelerating rate of decline in the global economy that has emerged."
A consensus of analysts had projected that PPG earnings would be about 73 cents a share, Bloomberg News reported.
PPG, a global supplier of paints, coatings, chemicals, optical products and glass, said that its industrial coatings and glass segments are expected to report losses in the fourth quarter. The fourth quarter results will reflect the benefit from falling raw material and energy costs.
The market softness initially seen in the U.S. industrial markets now is prevalent on a global basis, PPG Chief Financial Officer William H. Hernandez said today.
The business serving the industrial-end markets are experiencing significant loss of volume because customers are responding to lower consumer demand and tighter credit by cutting production and reducing inventory, Hernandez said.
PPG's commodity chemicals, performance coatings and architectural coatings segments continue to perform solidly and the company's optical products business continues to show growing volumes, Hernandez said.
The company plans to release fourth quarter results on Jan. 16.
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