Oct 16 (Reuters) - Paints and coatings maker PPG

Industries ( PPG ) missed Wall Street estimates for

third-quarter profit on Wednesday, hurt by lower sales at its

industrial coatings unit.

The company posted an adjusted profit of $2.13 per share in

the July-September quarter, compared with estimates of $2.15,

according to data compiled by LSEG.

WHY IT'S IMPORTANT

U.S. new vehicle sales fell during the third quarter due

to fewer selling days, weaker consumer spending and higher

interest rates, which impacted demand for automotive coatings.

Production at factories in the United States held steady at

weaker levels in September, although new orders improved.

CONTEXT

The Pittsburgh, Pennsylvania-based firm is a global

supplier of paints, coatings and specialty materials. It is the

largest coatings company in the world, followed by

Sherwin-Williams.

At PPG's automotive OEM coatings unit, which sells paints,

coatings and adhesives to the auto industry, organic sales

declined by double-digit percentage.

However, performance coatings sales during the

third-quarter rose compared to last year led by aerospace

coatings.

BY THE NUMBERS

Net sales at PPG's performance coatings segment rose to

$2.92 billion in the third quarter, compared with $2.88 billion

a year earlier.

Meanwhile, sales at its industrial coatings segment fell 6%

to $1.65 billion from the same quarter a year ago.

KEY QUOTE

"Automotive OEM coatings organic sales decreased more

than initially forecasted...due to lower U.S. and European

industry build rates, which deteriorated notably late in the

quarter, partly offset by PPG growth in China and Mexico," PPG

said.