PPG Reports on Fourth Quarter

PPG Industries reported fourth quarter net income of $94 million, or 55 cents a share, including an after-tax charge of $4 million, or 2 cents a share, to reflect the increase in value of PPG stock included in a previously reported asbestos settlement agreement.

Excluding this charge, net income was $98 million, or 57 cents a share. Sales were $1.99 billion.

This compares with fourth quarter 2001 net income of $83 million, or 49 cents a share, on sales of $1.91 billion.

For all of 2002, PPG recorded a net loss of $69 million, or 41 cents a share, including one-time after-tax charges of: $484 million, or $2.85 a share, for the asbestos settlement; $52 million, or 31 cents a share, for restructuring; and $9 million, or 5 cents a share, for the cumulative effect of a required accounting change.

Excluding these items, net income was $476 million, or $2.80 a share. Sales were $8.1 billion. Net income for 2001 was $387 million, or $2.29 a share, including a $71 million after-tax restructuring charge. Excluding the charge, equaling 42 cents a share, income was $458 million, or $2.71 a share. Sales were $8.2 billion.

"We expect the global economic environment to be challenging once again in 2003," said Raymond W. LeBoeuf, PPG chairman and CEO. "Nevertheless, we remain committed to further improvements in our cost structure and cash flow. Last year, we lowered manufacturing and overhead costs by about $140 million, reduced debt by more than $400 million and increased our dividend payments for the 31st consecutive year. We expect another year of strong cash flow in 2003, which will allow us to reduce debt and increase our financial flexibility."

Consistent with previous disclosures, fourth quarter 2002 earnings included approximately 11 cents a share of higher pension and retiree medical costs, which were partially offset by the required accounting change eliminating goodwill amortization of 5 cents a share.

Fourth quarter 2002 sales increased $35 million, or 3 percent, in the coatings segment due to stronger volumes in architectural and industrial coatings and the strengthening of foreign currencies. Operating earnings were up 7 percent as a result of higher prices, lower raw material costs and the benefit of goodwill no longer being amortized. This was offset in part by higher pension and retiree medical costs and higher selling costs for the architectural business.

Glass sales increased slightly and earnings rose $7 million from overhead reductions and greater manufacturing efficiencies, despite lower prices and higher pension and retiree medical costs.

600450 PPG Reports on Fourth Quarter glassonweb.com

See more news about:

Others also read

New STEM education facility at Carnegie Science Center targeted to open in 2018.
PPG has designed and produced windows for the Breakthrough Laminar Aircraft Demonstrator in Europe (BLADE), a Clean Sky Smart Fixed Wing Aircraft Integrated Technology Demonstrator (SFWA ITD).
PPG reaches agreement with Nippon Electric Glass for sale of remaining fiberglass operations.
PPG and Vision Systems have reached a commercial agreement to work together on developing new applications utilizing Vision Systems’ electronically dimmable window shading solutions for aircraft.
Annual conference for decorated glass and ceramics set for Pittsburgh, April 22-24.
$55 million investment to enable production of jumbo-sized energy-efficient glass

Add new comment