(Reuters) -Global paint supplier PPG Industries missed Wall Street expectations for second-quarter profit on Tuesday, hurt by the impact of recent business divestitures and softer demand in key markets.
Last year, PPG sold both its architectural coatings business in the United States and Canada to American Industrial Partners for about $550 million and its silica business to QEMETICA for $310 million.
The divestitures and lackluster demand across key markets such as Europe weighed on PPG’s quarterly net sales, which came in at $4.19 billion, compared with $4.24 billion a year earlier.
Higher feedstock and energy costs and an uncertain macro environment have weighed on demand for companies such as PPG, which serve an array of end markets such as autos, building and construction.
Net sales at PPG’s global architectural coatings segment and the industrial coatings segment both fell 5% during the quarter to $1.02 billion and $1.67 billion, respectively.
However, its performance coatings segment reported a 7% rise in net sales, which came in at $1.51 billion, lifted by strong demand in aerospace, protective and marine coatings.
The company reaffirmed its full-year earnings outlook, even as rival Sherwin-Williams cut its annual forecast amid soft industry demand.
The company reported a profit of $2.22 per share for the quarter ended June 30, compared with analysts’ average estimate of $2.23 per share, according to data compiled by LSEG.
(Reporting by Khusbu Jena and Sumit Saha in Bengaluru; Editing by Alan Barona)
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