Investing.com – PPG Industries stock (NYSE:PPG) recouped some of the losses but still traded 1% lower Friday on worries surrounding demand for its paints from some industries such as automobiles and aviation.
About 40% of the business portfolio — representing the automotive OEM, aerospace, and automotive refinish coatings businesses — remains more than 15% below pre-pandemic sales volume levels, the company said, while holding out hopes of it being a catalyst for revenue and earnings growth in 2022 and 2023.
The company also warned that the cost of raw materials is expected to rise 25% to 30% in the first quarter on a year-on-year basis after they rose 30% in the fourth quarter.
It pegged corporate expenses to be $70 million for the quarter, rising from $60 million a year ago.
The company is now forecasting its aggregate net sales volumes down a mid-single-digit percentage on a year-on-year basis. PPG did not provide full-year guidance, citing economic uncertainty relating to the pandemic.
Fourth-quarter net sales rose 12% to a record $4.2 billion as an 8% increase in selling prices offset the 4% fall in volumes.
Profit per share fell 25% to $1.26, hurt by higher raw material costs, but was ahead of estimates.