This compares with third-quarter 2000 net income of $150 million, or 86 cents a share, including one-time after-tax charges of $3 million, or two cents a share, to rationalize the PPG Auto Glass automotive replacement glass distribution venture.Excluding charges, net income was $153 million, or 88 cents a share. Sales were $2.14 billion.
PPG's nine-month net income was $304 million, or $1.80 a share, including the $101 million pretax restructuring charge taken in the first quarter. Excluding the charge, equaling 42 cents a share after-tax, net income was $375 million, or $2.22 a share. Sales were $6.26 billion.
This compares with nine-month 2000 net income of $494 million, or $2.82 a share, including the third-quarter charges and a first quarter charge of $35 million for the write-off of an equity investment. Excluding these charges, equaling 22 cents a share, net income was $532 million, or $3.04 a share. Sales were $6.57 billion.
"Our actions to reduce costs, increase efficiency and improve our performance are on track to deliver more than $70 million in savings on an annual basis," said Chairman and Chief Executive Officer Raymond W. LeBoeuf, referring to the $101 million pretax restructuring charge taken in the first quarter. "However, as we continue to see deterioration in global markets, we will continue our aggressive pursuit of additional cost-reduction opportunities."
LeBoeuf added that despite lower 2001 nine-month earnings, PPG's focus on conserving capital has increased cash from operations and reduced capital spending. "This has enabled us to reduce debt this year by about $300 million, with about $180 million net reduction in the third quarter, without sacrificing service, investments in technology or productive capacity," LeBoeuf said. "As a result, we will be better positioned to grow earnings per share when the global economic recovery begins, as we have done in recoveries over the past 30 years."
Third quarter 2001 sales in PPG's coatings segment were down 6 percent from last year's record period, driven largely by volume declines in automotive and industrial coatings. The earnings impact of these declines was offset partially by manufacturing efficiencies and reductions in overhead costs.
The decline in glass sales resulted primarily from lower volumes, most notably in fiber glass. Earnings also fell despite the positive impacts in pricing and manufacturing efficiencies.
Chemical sales and earnings fell also as a result of lower volumes. The impact of lower volumes and charges for estimated environmental remediation costs more than offset the reduction in overhead costs.