PPG Industries' Net Climbs 13% on Strong Sales Growth

PPG Industries Inc.'s fourth-quarter net income rose 13% on a double-digit sales increase. The supplier of coatings, glass and fiberglass Thursday reported net income of $94 million, or 55 cents a share, compared with $83 million, or 49 cents a share, a year earlier.

The latest results included a charge of $4 million, or two cents a share, to reflect an increase in value of PPG stock related to an asbestos settlement.Excluding the charges, the company's earnings were $98 million, or 57 cents a share.

The latest results were in line with the company's lowered earnings guidance, which ranged between 55 cents and 60 cents a share. In November, PPG had warned that earnings for the quarter would be less than analysts' forecast of 76 cents a share, citing the continued slowdown in overall industrial production and slower-than-expected increases in its commodity chemical prices.

Sales, meanwhile, rose 4.4% to $1.99 billion from $1.91 billion a year earlier.

For the year, PPG swung to a net loss of $69 million, or 41 cents a share, compared with net income of $387 million, or $2.29 a share, in 2001.

Excluding items, the company's 2002 earnings increased 3.9% to $476 million, or $2.80 a share, compared with $458 million, or $2.71 a share, in 2001.

Sales slipped 1.2% to $8.07 billion from $8.17 billion a year earlier.

Later Thursday, Chief Financial Officer William Hernandez said PPG is considering making a $20 million to $30 million contribution to its pension fund, and it will also reduce its year-end equity by $800 million because of a shortfall in pension assets versus liabilities.

"While we are not required to make a contribution to our pension fund, we are considering making a voluntary contribution in the range of $20 to $30 million in 2003," said Mr. Hernandez in a taped message following the release of the company's fourth-quarter results.

The contribution would give the company more flexibility by delaying the time it could be mandated to make a contribution until at least 2006, even if the equity markets don't recover at all, Mr. Hernandez said.

PPG wants to retain that flexibility to avoid distractions from serving customers, funding businesses and continuing to increase dividend payments, he said.

Higher pension costs and retiree benefit costs reduced reported earnings for 2002 by about $120 million, he said. "We continue to estimate that the 2003 impact on reported earnings will be about the same increase, year-over-year," Mr. Hernandez said.

600450 PPG Industries' Net Climbs 13% on Strong Sales Growth glassonweb.com

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.

Add new comment