PPG Industries“ chairman and chief executive officer Charles E. Bunch discussed steps the company took in 2007 to become a more focused coatings and specialty products company at its annual meeting o…
PPG Industries“ chairman and chief executive officer Charles E. Bunch discussed steps the company took in 2007 to become a more focused coatings and specialty products company at its annual meeting of shareholders on 17 April 2008. “PPG continued in 2007 to strengthen and sharpen its portfolio,” Mr. Bunch said. “We believe that our strategy to reshape PPG is precisely what is needed in order for us to maintain our long tradition of success”. Mr. Bunch called PPG“s acquisition on 2 January 2008 of SigmaKalon a “transformational step”. According to Mr. Bunch, the acquisition, the company“s largest in its 125-year history, is expected to increase PPG“s year-over-year coatings sales 40% in 2008 and to increase the proportion of coatings and specialty products in PPG“s portfolio from 66% to 80% in two years. Mr. Bunch also addressed the status of the company“s automotive glass and services businesses, saying, “It remains PPG“s intent to divest this business in 2008”. In the meantime, PPG has taken steps to improve the business by combining the original-equipment and replacement glass businesses into one unit, consolidating administrative functions, transitioning away from PPG processes to reduce overhead, reducing labor costs and reviewing alternatives to reduce capacity. “As PPG enters its 125th year,” Mr. Bunch said, “we are encouraged by the spirit of our founders, who sought to create value by offering innovation and specialty products to their customers. By accelerating our transformation, we at PPG believe that we“re entering our next 125 years by continuing to create value for our shareholders through growth, leadership and innovation”. PPG shareholders elected three incumbent directors: Hugh Grant, chairman, president and chief executive officer of Monsanto Co.; Michele J. Hooper, managing partner of The Directors“ Council; and Robert Mehrabian, chairman, president and chief executive officer of Teledyne Technologies, Inc. Shareholders also endorsed the appointment of Deloitte & Touche LLP as the company“s independent registered public accounting firm for 2008.