PPG Industries Warns Badly on Fourth Quarter Outlook

PPG Industries ( PPG) shares are down nearly 5% as the company announced profits for the quarter will come in below current analyst expectations.

Management said the market softness which was seen initially in the U.S. industrial markets has now spread globally. The company sees the biggest weakness specifically in its industrial coatings segment -- including automotive -- and its glass segment, and both were expected to report fourth-quarter losses.

The company now sees fourth quarter EPS in the 35 cents to 45 cents range. This is below consensus estimates of 67 cents.

We have avoided shares of PPG since our early June coverage began, when the stock was trading at $61.23. The company has a 5.11% dividend yield, based on Friday night's closing stock price of 41.46. The stock does have long-term technical support in the $30 to $31 price area. We would like to see shares consolidate at these current levels, before considering if any sort of bottom is in place.

PPG Industries is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.

Aaron Rents Shares Dropping Despite Raised Guidance

Aaron Rents ( RNT) just announced it is raising its 2009 profit guidance, citing the fact that more consumers are renting rather than buying furniture in this tough economy.

Management now sees 2009 profit of $1.70 to $1.85 per share, up from a prior outlook of $1.65 to $1.80 per share. The consensus estimates are for a profit of $1.74 per share in 2009.

We have been avoiding shares of Aaron Rents since our early June coverage began, when the stock was trading at $23.06. The company has a dividend yield of .24%, based on Friday's closing stock price of $28.66. We are raising our ratings on the stock this morning, but they are still a bit shy of being placed on our "Recommended" list at the moment. We will monitor the news closely and keep subscribers updated on any further ratings move.

Aaron Rents is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.

Steelcase Profits Plunge 99%

Office furniture maker Steelcase ( SCS) reported its profits plunged 99% to $400,000, or breakeven a year ago.

Revenue fell 8.4% to $811.3 million from $885.9 million, as with sales falling 11.4% in its North American segment.

As for its outlook, the company expects a fourth-quarter loss between 4 cents and 10 cents per share and revenue within a range of $650 million to $700 million. The consensus estimates are for a profit of 11 cents profit and revenue of $747 million.

We have avoided shares of Steelcase since our June coverage began, and the stock was trading at $5.73. The company has a 5.58% dividend yield, based on Friday's closing stock price of $12.38. The stock is trading at historic lows with pretty much no technical support to be found. If shares can stabilize, there seems to be a lot of overhead support in the $9 area. We would simply avoid the shares at this current moment.

Steelcase is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.

Manpower Withdraws Fourth Quarter Profit Guidance

Manpower ( MAN) just announced it is pulling its fourth quarter profit and revenue guidance.

Management cited continued declines in the global labor markets and changes in foreign currencies for its cautious stance. The company anticipates that demand for its services will be especially weak in December as it is hearing that many of its clients are taking prolonged plant shut downs around the holidays compared to last year.

We had removed shares of Manpower from our "Recommended" list back on Sept. 15, when the stock traded at $47.37. The name had been on our list from Aug. 8 at a price of $49.11. The company has a 2.03% dividend yield, based on Friday's closing stock price of $36.40. The stock has technical support at the $26 level, and if that fails, the $20 level would be the next area of long-term support. If the shares can stabilize, the $50 area would have the biggest level of overhead resistance. We would look elsewhere for a better risk/reward scenario.

Manpower is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.

At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.

Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.

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