PPG: profit down 64% in 4Q 2008

PPG Industries Inc., said 16 January 2009 its 4Q 2008 profit fell 64% as the “rapid deterioration in the global economy” reduced volumes in several segments.
For the three months ended 31 December 20…

PPG Industries Inc., said 16 January 2009 its 4Q 2008 profit fell 64% as the “rapid deterioration in the global economy” reduced volumes in several segments. For the three months ended 31 December 2008, net income fell to USD 71 million, or USD 0.43 per share, from USD 200 million, or USD 1.21 per share, in the year-earlier period. Excluding one-time items, the company earned USD 0.41 per share. In December 2008, the company forecast earnings per share between USD 0.35 and USD 0.45. Revenue rose 3% to USD 3.19 billion, less than the USD 3.52 billion analysts expected. Glass segment sales declined USD 276 million compared with the prior year due largely to the divestiture of a majority interest in the automotive glass and services business, which was completed in September 2008. Other factors contributing to the decline in sales were lower volumes reflecting reduced construction and general industrial demand and weaker currency, which were slightly offset by higher selling prices. Segment earnings fell by USD 40 million on lower volumes, lower equity and other earnings and the absence of earnings from the divested automotive glass and services business. Results for 4Q 2007 at the divested automotive glass and services business were sales of USD 230 million and earnings of USD 5 million pretax, USD 3 million aftertax. Weaker foreign currencies also detracted from sales. For all of 2008, PPG earned USD 538 million, or USD 3.25 per share, compared with USD 834 million, or USD 5.03 per share, in the year-earlier period. Sales increased to USD 15.8 billion from USD 12.2 billion.