Jan 27 (Reuters) – Global paint supplier PPG Industries said on Tuesday it expects demand in Europe and across global industrial end-use markets to remain soft in the coming year, after the company fell short of Wall Street’s fourth-quarter profit expectations.
Higher feedstock and energy costs as well as 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.
U.S. manufacturing activity slumped to a 14-month low in the fourth quarter, with new orders contracting further and input costs grinding higher as the sector continued to bear the imprint of President Donald Trump’s import tariffs.
A slowdown in home construction and purchases has reduced demand for building materials such as paints and coatings, weighing on the bottom line of companies like PPG Industries.
The company also expects profit growth to be weighted toward the second half of 2026, with flat to low-single-digit percentage growth in the first half of the year and increasing to high-single-digit percentage growth in the second half of the year.
PPG expects $50 million in savings in 2026 as it moves ahead with consolidating its European manufacturing operations and other structural reductions.
However, total net sales rose to $3.91 billion in the fourth quarter, from $3.73 billion a year ago.
Net sales in PPG’s performance coatings segment rose to $1.32 billion in the October–December quarter from $1.26 billion a year earlier, while sales in its industrial coatings segment increased 3.47% to $1.64 billion, helped by higher selling prices and a favorable currency impact, though weaker sales volumes limited the gain.
The Pittsburgh, Pennsylvania-based company reported adjusted profit of $1.51 per share for the quarter ended December 31, compared with the analysts’ average estimate of $1.58 per share, according to data compiled by LSEG.
(Reporting by Katha Kalia in Bengaluru; Editing by Pooja Desai and Alan Barona)
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