This post was originally published on this site
PPG Industries Inc. stock fell more than 5% late Monday after the maker of paints and industrial coatings reported quarterly profit below Wall Street expectations and said that rising costs and supply-chain disruptions continue.
PPG
PPG,
said it earned $431 million, or $1.80 a share, in the second quarter, compared with $102 million, or 43 cents a share, in the year-ago quarter.
Adjusted for one-time items, the company earned $1.94 a share. Sales rose to $4.36 billion from $3.02 billion a year ago.
Analysts polled by FactSet expected PPG to report adjusted earnings of $2.20 a share on sales of $4.34 billion for the quarter.
Adjusted EPS was below PPG’s April forecast due to the twin impacts from supply disruptions and continued increases in raw-material and transportation costs throughout the quarter, the company said.
PPG said it increased its prices and continued to trim costs.
The supply-chain disruptions are likely to persist through the third quarter, and as a result input and logistics costs likely will be higher in the third quarter as compared to the second quarter, Chief Executive Michael H. McGarry said in a statement.
“We continue to prioritize further selling-price increases, which we expect will fully offset raw-material cost inflation before the end of 2021,” he said. “Overall economic-demand growth remains very broad and robust and, as supply conditions normalize, we expect strong sales growth later this year and into next year.”
PPG shares ended the regular trading day down 2.6%. The stock has gained 15% this year, compared with gains of around 13% for the S&P 500 index
SPX,
