PPG: 2Q profit down 42%

PPG Industries Inc. said on 16 July 2009 that its second-quarter net income dropped severely to US 146 million, or 89 cents a share, from USD 250 million, or USD 1.51, in 2008, due to the continuing g…

PPG Industries Inc. said on 16 July 2009 that its second-quarter net income dropped severely to US 146 million, or 89 cents a share, from USD 250 million, or USD 1.51, in 2008, due to the continuing global recession. According to PPG, sales for the second quarter ended 30 June were USD 3.1 billion, a 30% drop compared to sales of USD 4.5 billion in 2008. The divestiture of a majority interest in the automotive glass and services business in 2008 to Pittsburgh Glass Works, of which PPG retains a 40% share, for USD 253 million, were also part of the decrease in sales. “Clearly, we are continuing to experience very challenging conditions in many of our end-use markets,” CEO Charles E. Bunch said, adding that PPG“s cash generation had increased 25%, while earnings rose significantly compared to the previous two quarters. Bunch also said the company is looking at the future positively since total sales during the quarter remained fairly consistent month to month, also remaining steady within each major region. “This gives us a degree of confidence that most markets have stabilized, albeit at considerably lower levels than prior years,” he said.