PPG: decrease in 3Q net income

PPG Industries reported record sales of USD 2.8 billion for the 3Q 2006, up 10% year-on-year. For the first three quarters of 2006, the company“s net income reached USD 554 million, or USD 3.33 a sha…

PPG Industries reported record sales of USD 2.8 billion for the 3Q 2006, up 10% year-on-year. For the first three quarters of 2006, the company“s net income reached USD 554 million, or USD 3.33 a share, up from USD 483 million, or USD 2.81 a share, in 2005. Net income fell in the 3Q, however, to USD 90 million, or USD 0.54 per share, from USD 157 million, or USD 0.92 a share in the corresponding quarter of 2005. After-tax charges of USD 106 million towards estimated environmental remediation costs at PPG“s New Jersey and Louisiana sites plus USD 21 million for legal settlements are included here, along with a charge of USD 4 million to cover an increase in the company“s asbestos settlement agreement. Against this, there are after-tax earnings of USD 7 million from an insurance recovery. Operating earnings at the Glass division were up by USD 76 million on sales up 2%. The company attributed the increase to stronger manufacturing efficiencies and increased equity earnings, which more than offset inflation and lower selling prices. A regular quarterly dividend of USD 0.48 a share, payable on 12 December 2006, has been declared.