* Q3 adjusted EPS $2.24 vs. Street view $2.20
* Sales down slightly to $3.85 bln, misses Street
Oct 18 Chemicals producer PPG Industries Inc
posted a better-than-expected quarterly profit on
Thursday as cost cuts helped offset nearly flat revenue.
For the third quarter, net income rose to $339 million, or
$2.18 per share, from $311 million, or $1.96 per share, in the
Excluding one-time items, the company earned $2.24 per
share. By that measure, analysts expected $2.20, according to
Thomson Reuters I/B/E/S.
Net sales slipped less than 1 percent to $3.85 billion.
Analysts expected $3.91 billion.
Pittsburgh-based PPG cut its cost of sales 3 percent to $2.3
"Looking to the fourth quarter, we are heading into a
seasonally slower period in most end-use markets and expect
little change in the inconsistent performance of economies
outside North America," Chief Executive Charles Bunch said in a
During the quarter, PPG Industries sold its commodity
chemicals business to Georgia Gulf Corp for $2.1 billion
in a complex transaction. PPG Industries shareholders receive
50.5 percent of the shares of a new company to be formed, and
Georgia Gulf shareholders get the rest.
The sale gives PPG Industries the cash to bolster its
performance coatings and industrial coatings businesses, which
make up more than one-half of sales.
PPG Industries also makes the popular Transitions line of
Its shares, which closed Wednesday at $118.97, have gained
43 percent so far this year.