PPG Drops Most in 2 Months as Operating Profit Trails Estimates
PPG Industries Inc. (PPG), the world’s second-largest paint maker, fell the most in two months after posting fourth-quarter operating profit that trailed analysts’ estimates.
PPG fell 2.8 percent to $87.41 as of 10:38 a.m. in New York after trading as low as $86.81, the biggest drop since Nov. 17.
Operating income -- sales minus the cost of goods sold, administrative expenses, depreciation and amortization -- was $307 million, Pittsburgh-based PPG said today in a statement. That’s less than the $344.8 million average of five analysts’ estimates compiled by Bloomberg. Revenue rose 4.1 percent from a year earlier to $3.52 billion as sales volumes were unchanged.
Net income climbed 5.4 percent to $216 million, or $1.39 a share, from $205 million, or $1.24, a year earlier, PPG said. The average of 14 analysts’ estimates compiled by Bloomberg was $1.27 a share.
The 12-cent beat was aided by a lower-than-expected tax rate and a favorable tax settlement that added 17 cents a share to earnings, Ivan A. Marcuse, a Cleveland-based analyst at Keybanc Capital Markets Inc. who rates the shares “buy,” said in a report today.
Akzo Nobel NV is the world’s largest paint maker.
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