The chief executive also stated that the raw material costs are expected to continue increasing for the current quarter but at a more modest pace compared to last year.

PPG shares plunged 10.1% on the Tuesday announcement, one of its worst daily declines in over two years.

The negative outlook from the materials provider was seen as a warning for the potential broad sector in the upcoming earnings season.

“If industrials and materials are weighed on because of concerns about global activity, it’s going to cast a pall over the market at large since S&P 500 companies generate about half of their business from overseas markets,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told U.S. News.

For more information on the materials sector, visit our materials category.