While sales dropped, PPG Industries (PPG) saw an increase in its profit in the second quarter.
Earnings and Revenue
The company fell short of estimates with EPS of $2.34 a share and revenues of $3.96 billion. Analysts were expecting EPS of $2.36 a share and revenues of $4.15 billion. The estimates of 14 analysts ranged from profit of $2.15 to profit of $2.50.
The company's net income for the quarter was $362 million. This is 6.5% higher than the year-ago quarter. Revenue fell 0.8% from $3.99 billion in the same period last year.
Company Fundamental Trends
Slumping revenue in the last quarter ends The company's streak of at least four consecutive quarters of revenue increases.
History Against Expectations
The company missed forecasts after topping estimates in the previous two quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.
"In the second quarter, PPG delivered the highest quarterly earnings per share in company history as a result of continued execution, strong cost discipline and effective cash deployment," said Charles E. Bunch, PPG chairman and CEO. "These record earnings were achieved despite significantly weaker European and Latin American currency exchange rates and growth that varied by region and end-use market." According to Bunch, the negative currency impacts reduced overall sales by five percent and resulted in a negative 10 cents per share earnings impact versus the second quarter 2011.
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.