Charles E. Bunch, chairman and chief executive officer of PPG Industries, told investment analysts in New York on 4 May 2006 that he believes the company“s financial performance validates its growth …
Charles E. Bunch, chairman and chief executive officer of PPG Industries, told investment analysts in New York on 4 May 2006 that he believes the company“s financial performance validates its growth strategies. “PPG is delivering strong results, and it“s the direct result of our focus on profitable growth”, Bunch said. “Our pursuit of organic growth and growth through acquisitions and joint ventures is playing a meaningful role in our performance, and it is building a foundation for continued growth”. For 12 consecutive quarters PPG has posted all-time quarterly sales records. In addition, the company“s 1Q 2006 results were up more than 40% from the same period in 2002. “We have the financial strength and discipline to make solid, strategic acquisitions that position us to grow our business, and more important, our bottom line in a sustainable and high-quality manner”, Bunch said. PPG announced three acquisitions within a few days of each other. On 28 April 2006, the company said it has acquired Italian spectacle lens maker Intercast Europe, S.p.A., related manufacturing operations in Thailand, and related manufacturing and distribution facilities in Italy and Hong Kong. The same day, PPG announced its agreement to acquire certain assets of Shanghai Sunpool Building Material Co., Ltd., and its associated companies, including Shanghai IDI International Co., Ltd., and a group of Shanghai-based businesses that manufacture and distribute architectural coatings and building materials. On 1 May 2006, PPG announced the acquisition of certain assets of Eldorado Chemical Company. Bunch said he believes PPG“s acquisitions of the past 12 months and the ones the company intends to make this year should add 5 to 7% of sales. Turning to organic initiatives, Bunch said the company has the ability to build upon its “leadership position in key growth areas” to generate meaningful growth. He pointed to the startup of a system to manufacture low-emissivity glass in Wichita Falls, Texas; construction of an optical products plant in Thailand; growth of home center stores that sell the company“s architectural paints; and the scheduled startup of a coatings application plant in Taiwan for fasteners and small parts. Bunch said PPG“s organic volume growth in optical products and aerospace, architectural and Asian coatings has added nearly USD 650 million to the company“s cumulative sales since 2003, or more than 6% based on sales for 2005. He added that Asia continues to be a top priority for PPG, saying the company wants to generate USD 2 billion in annual sales from the region in the next five to seven years. “It“s an exciting time at PPG”, Bunch said. “In fact, in all my 27 years with the company, I have never been more convinced of its bright future than I am today”.