PPG Profit Falls on Higher Costs

Dow Jones07-29

PPG Industries reported higher second-quarter revenue, boosted by higher prices, but profit fell due to supply costs from the war in Iran.

The paints and coatings company posted net income of $437 million, or $1.95 a share, down from $450 million, or $1.98 a share, the year prior.

Adjusted earnings were $2.23 a share. Analysts polled by

FactSet expected $2.25 a share.

Revenue rose to $4.5 billion from $4.2 billion. Wall Street expected $4.37 billion.

PPG reiterated its full-year adjusted earnings guidance of $7.70 to $8.10 a share. Analysts see adjusted earnings of $7.88 a share.

The company said its selling price in the quarter was up 2% and that it covered about 90% of the cost of goods sold inflation.

In April, PPG raised prices by up to 20% to keep up with rising supply costs stemming from the war in Iran, which choked petrochemical, energy and transportation markets.

"Costs have risen for raw materials, energy, logistics and packaging across the coatings value chain," said Chief Executive Tim Knavish.

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