(Reuters) – PPG Industries missed Wall Street’s fourth-quarter profit expectations on Thursday, due to lower demand for its industrial and architectural coatings products and weak prices.
U.S. mortgage rates rose over the year, weighing on the homebuilding industry, which had previously benefited from a scarcity of pre-owned houses for sale.
With fewer homes being built or bought, the demand for construction materials such as paint and coatings has also dropped, affecting the profits of companies such as PPG.
Additionally, U.S. factory activity ended the year on a soft note.
Net sales in PPG’s industrial coatings segment fell to $1.58 billion during the October-December quarter, compared with $1.73 billion a year earlier, hurt by a continuing trend of year-over-year declines in industrial production in the United States and Europe.
Total net sales for the company fell 5% to $3.7 billion in the fourth quarter.
“We anticipate a slow start to 2025 as demand in Europe and in global industrial end-use markets remains challenged,” said CEO Tim Knavish.
The Pittsburgh, Pennsylvania-based company posted an adjusted profit of $1.61 per share for the quarter ended Dec. 31, compared with analysts’ estimates of $1.65 per share, according to data compiled by LSEG.
(Reporting by Vallari Srivastava and Mrinalika Roy in Bengaluru; Editing by Mohammed Safi Shamsi)