PPG has reported that fourth-quarter 1995 sales, net income and earnings per share were the highest of any fourth quarter in its history.
Despite generally weaker automotive production and housing st…
PPG has reported that fourth-quarter 1995 sales, net income and earnings per share were the highest of any fourth quarter in its history. Despite generally weaker automotive production and housing starts, full-year results also surpassed 1994“s records as sales of the global maker of coatings, glass and fibreglass, and chemicals exceeded US$ 7 billion for the first time. PPG“s fourth-quarter net income was US$ 161.2 million, or 83 cents a share, including minor non-recurring items – such as charges to improve productivity in Europe – which reduced net income two cents a share. Sales were US$ 1.7 billion. Net income in the 1994 period was US$ 151.0 million, or 72 cents a share, on sales of US$ 1.7 billion. For the year, net income was US$ 767.6 million, or US$ 3.80 a share – including an after-tax gain of US$ 24.2 million, or 12 cents a share, from settlement of a glass technology dispute with Pilkington Plc – on sales of US$ 7.1 billion. Net income in 1994 was US$ 514.6 million, or US$ 2.43 a share – including an after-tax charge of US$ 51.9 million, or 24 cents a share, related to exiting the medical electronics business – on sales of US$ 6.3 billion. PPG“s board of directors declared a regular quarterly dividend of 30 cents. PPG has paid dividends without interruption since 1899. “In addition to record sales and earnings in 1995, our gross profit margin was a record 40.3%, up 3.5% from 1994,” said Jerry E. Dempsey, board chairman and chief executive officer. “Return on capital was nearly 22% and return on shareholders“ equity nearly 29%.” “Our accomplishments of the past two years, despite tepid global economic growth, demonstrate the strength and resilience of our geographic diver-sity and business mix.” Increased fourth-quarter sales resulted primarily from price improvement in all businesses, as well as increased chemicals volumes. The glass and chemicals segments achieved record sales and operating earnings. The coatings and resins segment achieved record fourth-quarter sales. Even with globally stronger pricing in most product lines, operating earnings were reduced by increased raw material costs and other inflationary influences. Despite lower European flat and automotive glass volumes, glass segment sales increased on stronger pricing in virtually all businesses, as well as volume improvements for North American flat glass and European fibre glass products.