PPG Second Quarter '09 Financial Results Show Sales and Earnings
Decline Versus Last Year
July 17, 2009
In its second-quarter financial results, PPG Industries reported
sales for its glass segment declined $374 million compared to last
due largely to the automotive glass and services (AG&S) business
divestiture, which was completed in September 2008. The company
reported that other factors contributing to the sales decline were
lower volumes reflecting reduced construction and general industrial
demand and weaker foreign currency. The segment loss was $7 million,
a decline of $37 million due to the lower volumes and the absence
of earnings from the divested AG&S business. Despite only a
modest sales change versus the first quarter 2009, segment earnings
improved $20 million, driven in part by improved manufacturing costs.
Overall, PPG reported sales for the second quarter of $3.1 billion,
a decline of 30 percent versus the prior year's second quarter including
a 6-percent decline resulting from a business divestiture in 2008.
The company reported net income of $146 million, or 89 cents per
share. Adjusted net income was $148 million, or 91 cents per share.
Second quarter 2008 sales were $4.5 billion and reported net income
was $250 million, or $1.51 per share, and adjusted net income was
$275 million, or $1.66 per share.
Total sales in the quarter were down $1.4 billion, including a $253
million impact from the divestiture of a majority interest in the
AG&S business. Sales declined in all major regions of the world,
with negative foreign currency translation a contributing factor
in the decrease.
Second quarter 2009 net income includes an aftertax charge of $2
million, or 2 cents per share, to reflect the net increase in the
current value of the company's obligation under its proposed asbestos
settlement, which is pending court proceedings. Reported second
quarter 2008 net income included one-time, aftertax charges related
to the company's AG&S business of $23 million, or 14 cents per
share, and an aftertax charge of $2 million, or 1 cent per share,
for the proposed asbestos settlement.
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