24 September 1998: US-based producer of coatings, fibre glass, flat and fabricated glass, and industrial and speciality chemicals PPG Industries Inc. reported that glass sales remained relatively cons…
24 September 1998: US-based producer of coatings, fibre glass, flat and fabricated glass, and industrial and speciality chemicals PPG Industries Inc. reported that glass sales remained relatively constant at US$ 2.7 billion in 1997 and 1996. A 5% increase in sales was offset by a decline of 3% in sales prices and 3% in foreign currency translation effects. Although volumes increased in all glass products these increases were offset by lower sales prices in fibreglass, flat glass and automotive original glass products in North America and Europe. Operating income decreased to US$ 330 million compared with US$ 431 million in 1996. The decrease was attributable to the fourth quarter of present tax charges totalling US$ 65 million for restructuring operations, together with the negative effects of currency translation effects, inflation, sales price reductions and higher legal expenses. Improved worldwide manufacturing efficiency and increased overall volumes partially offset these unfavourable factors. PPG Industries estimates the worldwide market for continuous strand fibreglass at US$3-4 billion worldwide and automotive glass at US$ 10-15 billion worldwide with projected annual growth rates of 4-5% and 2-3% respectively. The company said in a recent report that it believes it is number one in aircraft transparencies, a major global supplier of automobile transparencies and one of the top five producers of float glass. In automobiles PPG introduced a solar control windshield that reduces heat entry and can also be used as a radio antenna and allows for a smaller air conditioning unit and enhanced appearance. The most dramatic growth is in residential insulating glass and the PPG Industries process accounts for 40% of the US market. An insulating glass line was started up in Japan and additional operations are planned, the company said. Meanwhile, the company recently completed transfer of its Asia-Pacific regional business development and coordination headquarters from Tokyo to Hong Kong to be more centrally and strategically located in relationship to the company“s interests in the region.