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PPG Industries (NYSE:PPG) declined 3.8% in extended trading Thursday after the maker of paints and coatings reported quarterly results.
Revenue fell 1.6% from a year earlier to $4.79 billion, less than the average estimate of $4.92 billion among Wall Street analysts.
Net income rose to $528 million, or $2.24 a share, in the second quarter from $490 million, or $2.06 a share, a year earlier.
Adjusted earnings of $2.50 a share beat the consensus estimate of $2.48 a share for the three months through June 30.
“Overall organic sales were flat, but grew in many of our businesses, including aerospace coatings, packaging coatings, architectural coatings Americas and Asia Pacific, traffic solutions and specialty coatings and materials,” Tim Knavish, chairman and chief executive officer of PPG (PPG), said in a statement. “This growth was offset by global automotive builds that weakened as the quarter progressed and global industrial production which remained soft. Also, refinish coatings sales were down year over year reflecting a comparison to record prior year results and uneven distributor order patterns.”
For the third quarter, management estimated that organic sales will be flat to higher by a low single-digit percentage. It also forecast adjusted earnings of $2.10 to $2.20 a share, less than the consensus estimate of $2.29 a share.
For the full year, PPG (PPG) foresees organic sales as flat to up by a single-digit percentage. It expects adjusted earnings of $8.15 to $8.30 a share, compared with the analyst estimate of $8.42 a share.
Dividend Aristocrat
PPG (PPG) also raised its quarterly dividend by 4.6% to $0.68 a share, maintaining its spot in the S&P 500 Dividend Aristocrats Index. The 67 companies in the index have paid a higher dividend for at least 25 straight years.
With the most recent increase, PPG has raised its dividend for 53 straight years.
PPG’s (PPG) latest quarterly rate is equal to $2.72 a year and represents yearly yield of about 2% based on Thursday’s trading price of $134.98 a share, up from a yield of 1.93%.
PPG also is on a list of 53 dividend kings, which have boosted their payouts annually for at least half a century, the Sure Dividend website said.
