PPG To Report Q3 Profit Below Estimates; Plans To Reduce Cost Structure

(RTTNews) - PPG Industries Inc. (PPG) announced the company expects its third-quarter reported loss per share from continuing operations to be in the range of $0.74 to $0.77 compared to profit per share from continuing operations of $1.52 in the third quarter 2015. Reported earnings include pension settlement charges that totaled $2.31 per share in third quarter 2016. Adjusted earnings from continuing operations for the third quarter are expected to be in the range of $1.54 to $1.57 per share, compared to $1.54 per share in the prior year's quarter. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.71. Analysts' estimates typically exclude special items.

PPG CEO, Michael McGarry, said: "We are disappointed with this quarter's EPS growth rate as we continue to operate in a sluggish economic environment with no clear near-term catalyst for improving global GDP growth."

PPG expects net sales for the third quarter to be approximately $3.8 billion. Analysts expect revenue of $3.84 billion, for the quarter. Year-over-year, volumes grew more than 1.5 percent.

PPG said the company is reviewing potential actions to reduce its overall cost structure, both through broad global operating-cost improvements and targeted regional actions where economic conditions are weakest. These cost actions would be in addition to the restructuring program announced in 2015.

PPG also announced that its board has authorized a $2 billion share repurchase program. This program is in addition to the company's existing share repurchase authorization which was approved in 2014 and had approximately $520 million remaining as of September 30, 2016. The company said it expects spending on acquisitions and share repurchases for the combined years 2015 and 2016 to be at the top end of the previously communicated $2.0 billion to $2.5 billion range.