PPG Industries Misses Q4 Profit Expectations

(Reuters) – PPG Industries (NYSE: PPG) missed Wall Street’s fourth-quarter profit expectations on Thursday due to lower demand for its industrial and architectural coatings products and weak prices.

U.S. mortgage rates rose over the year, impacting the homebuilding industry, which had previously benefited from a scarcity of pre-owned houses for sale. With fewer homes being built or bought, the demand for construction materials such as paint and coatings has also dropped, affecting the profits of companies like PPG (WA: IBSP).

Additionally, U.S. factory activity ended the year on a soft note.

Net sales in PPG’s industrial coatings segment fell to $1.58 billion during the October-December quarter, compared to $1.73 billion a year earlier, hindered by a continuing trend of year-over-year declines in industrial production in the U.S. and Europe.

Total net sales for the company decreased by 5% to $3.7 billion in the fourth quarter.

“We anticipate a slow start to 2025 as demand in Europe and in global industrial end-use markets remains challenged,” said CEO Tim Knavish.

The Pittsburgh, Pennsylvania-based company posted an adjusted profit of $1.61 per share for the quarter ended December 31, compared with analysts’ estimates of $1.65 per share, according to data compiled by LSEG.