PPG: hurricanes, charges hit 3Q 2005 net income

PPG Industries reported 3Q 2005 net income of USD 157 million, down from USD 194 million for the 3Q 2004, despite record sales in the quarter of USD 2.55 billion, up from USD 2.41 billion in 2004, the…

PPG Industries reported 3Q 2005 net income of USD 157 million, down from USD 194 million for the 3Q 2004, despite record sales in the quarter of USD 2.55 billion, up from USD 2.41 billion in 2004, the company said 20 October 2005. The fall in the 3Q 2005 was due to aftertax charges of USD 25 million for legal and insurance settlements; USD 11 million for direct costs related to the impact of hurricanes Katrina and Rita; and USD 3 million for obligations under its asbestos settlement agreement reported in May 2002. For the first nine months of 2005, PPG recorded net income of USD 483 million on sales of USD 7.7 billion, compared to net income for the corresponding period in 2004 of USD 500 million on sales of USD 7.1 billion. Earnings at the coatings operation in the 3Q 2005 were up USD 11 million to USD 210 million from USD 199 million in 2004 as sales increased USD 78 million, or 6%, as a result of improved selling prices across most businesses, strengthening foreign currencies and higher volumes, primarily in aerospace and architectural. The glass unit posted a loss of USD 36 million versus profit of USD 46 million in 2004 due to the adverse impact of the settlement of the civil glass antitrust matter. Sales fell USD 5 million, or 1% due to lower volumes across all businesses except automotive replacement glass, and lower selling prices. In chemicals, operating income was USD 121 million, up from USD 95 million in the 3Q 2004 as sales increased USD 65 million, or 12%, due primarily to higher selling prices for chlor-alkali products. These increases were slightly offset by lower volumes for chlor-alkali products including the unfavorable impact of the hurricanes.