29 January 1998: American company PPG Industries reported an increase in sales for the fourth quarter, with more earnings per share than in any previous fourth quarter, the company said. The increase …
29 January 1998: American company PPG Industries reported an increase in sales for the fourth quarter, with more earnings per share than in any previous fourth quarter, the company said. The increase was propelled by record sales for a final quarter in all three business segments including coatings, glass and chemical sectors, excluding effects of non-recurring gains and charges recorded in the last three months of 1997, said the company. Sales and earnings per share for all of 1997 were also records, even including effects of the final-quarter non-recurring items. Earnings were lower for 1997 than in 1996, in part because of effects of the net charges. Fourth-quarter net income was US$ 159 million (89 cents per share), on sales of US$ 1.8 billion. Excluding gains and charges, net income was US$ 174 million (98 cents per share). In the 1996 quarter, net income was US$ 152 million (83 cents per share), on sales of US$ 1.8 billion. Full-year net income was US$ 714 million (US$3.97 per share), on sales of US$ 7.4 billion. Excluding the non-recurring items, net income was US$ 729 million (US$ 4.06 per share). Net income for all of 1996 was US$ 744 million (US$ 3.96 per share), on sales of US$ 7.2 billion. PPG“s board of directors declared a regular quarterly dividend of 34 cents per share, payable 12 March to shareholders of record 17 February. PPG recorded non-recurring pre-tax charges of US$ 102 million for glass segment restructuring actions, including closing a Georgia float glass plant and disposal of equity interests in two Chinese float glass plants, said Raymond W. LeBoeuf, board chairman and chief executive officer. “Dispositions included in the fourth quarter charges, our first in several years, are actions to eliminate the drag of operations not meeting performance objectives,” LeBoeuf said. “We have increased our emphasis on accelerating earnings growth and further reducing cyclicality, which includes growing profitable sales of our existing operations, as well as acquisitions focused on areas of recognised strength – such as our fourth-quarter coatings acquisitions that will add annual sales of more than US$400 million.” “What is not new,” LeBoeuf added, “is our strong financial discipline, aimed at assuring that return on capital continues to be greater than the cost of that capital, providing real value to shareholders.” The Perry, Georgia, glass plant is expected to close in late 1998. Plans for disposition this year of PPG“s equity interest in Dalian Float Glass Co. and Guangdong Float Glass Co. are being completed, LeBoeuf said, pointing out that this decision was centered on “significant excess capacity in China“s flat glass industry.” Record fourth-quarter coatings segment sales and operating earnings reflected, in part, worldwide volume gains compared with the year-earlier period in all coatings businesses, particularly automotive original equipment and industrial. North and South American and European acquisitions during 1997 also contributed to the sales increase, the company said. Record glass segment sales were achieved in the quarter despite continued economic weakness in Europe. Excluding the one-time restructuring charges, the company said operating earnings increased slightly from a year ago.