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Oct 7 Chemical company PPG Industries Inc
said on Friday it expected to post a third-quarter loss,
its first since March 2009, due to charges related to a pension
PPG's shares fell 8.1 percent to a more than seven-month low
of $93.91, wiping out more than $2.2 billion of market value, in
morning trading on Friday.
The company said it expected a loss of 74 cents-77 cents per
share from continuing operations for the three months ended
September, compared with a profit of $1.52 per share a year
Reported earnings would include previously disclosed pension
settlement charges that totaled $2.31 per share, PPG said.
PPG said in June it would transfer pension benefits and
annuity administration to Massachusetts Mutual Life Insurance Co
and Metropolitan Life Insurance Co, and expected to take
non-cash settlement charges of about $500 million-$600 million
after-tax in the third quarter. (1.usa.gov/28Zw2Hz)
Excluding items, PPG said it expected a profit of
$1.54-$1.57 per share from continuing operations.
Analysts on average were expecting an adjusted profit of
$1.71 per share, according to Thomson Reuters I/B/E/S.
The company, which sells paints, coatings and materials,
said it expected net sales of about $3.8 billion, in line with
the average analyst estimate.
"We are disappointed with this quarter's EPS growth rate as
we continue to operate in a sluggish economic environment with
no clear near-term catalyst for improving global GDP growth,"
Chief Executive Michael McGarry said.
Pittsburgh, Pennsylvania-based PPG said its board had
authorized a $2 billion buyback program. This is in addition to
about $520 million remaining under an existing program.
The company has been cutting costs following its acquisition
of REVOCOAT, a global supplier of sealants, adhesives and damper
products for the automotive industry, in April 2015.
PPG has since cut about 1,700 jobs and has also sold its
flat glass unit to Mexican glass manufacturer Vitro
for about $750 million.
(Reporting by Anet Josline Pinto in Bengaluru; Editing by