Investing.com - PPG Industries on Monday reported first-quarter earnings that missed analysts' forecasts and revenue that fell short of expectations as the impact on demand from the Covid-19 pandemic weighed.
PPG Industries (NYSE:PPG) rose 1% after the close.
PPG Industries announced earnings per share of $1.19 on revenue of $3.38 billion. Analysts polled by Investing.com anticipated EPS of $1.21 on revenue of $3.45 billion. That compared with earnings per share of $1.38 on revenue of $3.62B in the same period a year before. PPG Industries had reported EPS of $1.31 on revenue of $3.67 billion in the previous quarter. Analysts are expecting EPS of $1.36 and revenue of $3.48 billion in the upcoming quarter.
PPG Industries shares are down 28% from the beginning of the year, still down 28.65% from its 52 week high of $134.36 set on December 16, 2019. They are under-performing the S&P 500 which is down 11.31% year to date.
"Our first quarter results reflect a sudden and wide-ranging deterioration in global demand during the month of March and the impacts of the economic shutdown in China during February," said Michael H. McGarry, PPG chairman and chief executive officer.
Looking ahead, the company warned that customer demand levels were likely "to remain severely impacted, with significant declines continuing in the automotive OEM, automotive refinish and aerospace coatings businesses," but said its operations in China were now fully operational.
"In certain other businesses, including packaging coatings, do-it-yourself (DIY) architectural coatings, long-cycle protective coatings and military products, demand has only been modestly impacted by crisis. Also, our operations in China are now fully operational, and regional economic activity is returning toward pre-crisis levels," it added.
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