PPG Sinks After Warning on Materials Costs, Weaker China Demand

An employee places a lid on a tin of ready mixed blue paint inside the PPG Industries Inc. paints and coatings factory in Amsterdam, Netherlands.

Photographer: Jasper Juinen/Bloomberg
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PPG Industries Inc. tumbled after saying Bloomberg Terminalthird-quarter earnings would lag analysts’ estimates because of rising costs and weaker demand for its paints.

Accelerating increases in raw-materials and transportation expenses are eroding profit, the Pittsburgh-based company said in a statementBloomberg Terminal Monday. At the same time, demand in China is softening and sales of automotive paints are weakening.