The stock of paint company PPG Industries Inc .
PPG,
slid 7% in premarket trade Monday, after it warned that third-quarter earnings would lag estimates due to softer demand in Europe and China. The Pittsburgh, Pa.-based company is now expecting adjusted per-share earnings for the quarter to be 5% to 7% below the guidance of $1.85 to $2.00 that was provided in July. “The sales volume declines were most pronounced in September and resulted in a
reduction in the earnings benefit from higher selling prices and reduced manufacturing efficiencies versus the prior forecast,” the company said in a statement. PPG is expecting the soft demand to continue into the fourth quarter, along with pressure from the strong dollar. It expects selling prices to be up by 105 to 12% from the year-ago quarter, and be up 18% to 20% on a two-year stacked basis. The company expects fourth-quarter segment earnings growth of nearly 20%, as margin recovery momentum accelerates. The company will report third-quarter earnings on Oct. 19. Shares are down 34% in the year to date, while the S&P 500
SPX,
has fallen 24%.
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