23 July 1998: US-based PPG Industries Inc. reported second-quarter net income declined to US$ 199 million, or US$ 1.13 a share, from US$ 218 million, or US$ 1.21 a share in 1997 citing a reserve incre…
23 July 1998: US-based PPG Industries Inc. reported second-quarter net income declined to US$ 199 million, or US$ 1.13 a share, from US$ 218 million, or US$ 1.21 a share in 1997 citing a reserve increase for disposition of equity interests in Chinese glass operations, as well as direct and indirect effects of about US$ 0.04 a share from General Motors Corp.“s strike-driven North American production shutdowns that began in June. Without these items, per-share earnings would have been US$ 1.22, Chief Executive Raymond LeBoeuf said. The First Call consensus estimate for the quarter was US$ 1.22 per share. The US$ 15 million pre-tax charge recognized in the second quarter is an addition to late-1997“s US$ 37 million pre-tax charge involving disposition of equity interests in Chinese glass operations, the company said. LeBoeuf noted that these charges will be exceeded by an expected third-quarter pre-tax gain of more than US$ 90 million upon completion of the sale of European flat and automotive glass operations. “These actions strengthen our business mix and concentrate flat and automotive glass activity on our profitable operations in North America,” LeBoeuf said. “Our confidence remains strong that ongoing strategic growth initiatives, together with our recognised expertise in cost efficiency, will lead to consistent earnings growth and superior returns for PPG“s shareholders.” In PPG“s glass segment, which includes fibre glass, operating earnings improved while sales were constant compared with the 1997 quarter. Benefits of continued global manufacturing efficiencies and slightly lower overhead costs more than offset negative effects of the GM plant closings.