22 December 2008 18:37 [Source: ICIS news]
HOUSTON (ICIS news)--US paints producer PPG Industries lowered its fourth-quarter earnings estimates due to the weakening world economy, the company said on Monday.
PPG now expects fourth-quarter earnings to be 35-45 cents/share (€0.25-0.32/share).
The weakening demand in US industrial markets has since spread to the rest of the world, according to a statement by William Hernandez, chief financial officer. That weakness has since spread throughout the world.
"Our businesses that serve these industrial end-markets are experiencing significant volume deterioration, as our customers react to lower consumer demand and tight credit markets by curtailing their production and reducing their inventory levels,” Hernandez said.
Already, PPG has lowered operating rates and furloughed workers this quarter in an attempt to lower costs, the company said. This comes on top of the restructuring programme that the company announced in September.
Moreover, PPG could adopt more cost-cutting programmes if the economy remains weak, the company said.
Sales volumes fell the steepest in PPG's segments for industrial coatings and glass, the company said. As a result, both segments will report losses in the fourth quarter.
However, PPG expects solid performance from its segments in commodity chemicals, performance coatings and architectural coatings, the company said. Volumes continue to grow for PPG's optical-products business.
($1 = €0.72)
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