Thursday, October 15, 2009
Pittsburgh based PPG Industries reports sales in the third quarter of $3.2 billion. That is 24% less than the same time last year. However, at the same time PPG reported net income of $159 million, or 96 cents per share. That is 7 cents more than analysts had expected and 36% more than the third quarter of 2008. PPG sales were impacted by a $229 million dollar loss due to the 2008 divestiture of a majority interest in the automotive glass and services business. Third quarter 2009 net income includes an after-tax charge of $2 million to reflect the net increase in the current value of the company’s obligation under its proposed asbestos settlement. That settlement is still pending in court. PPG CEO Charles Bunch says, “We continued to restore profitability and to deliver strong cash generation. We benefited from our aggressive cost-reduction actions.” The company responded to the slowdown in the economy with layoffs and plant closings. Bunch says the company is expecting only small gains in the fourth quarter with help from a growing Asian market. PPG has more than 140 facilities in more than 60 countries.