PPG Industries Inc. reported first-quarter net income of $95 million, including
after tax charges of $91 million, for a legal settlement in connection with an
adverse ruling last month concerning Marvin Windows and Doors and warranty issues
with a wood preservative the company makes. Sales were $2.5 billion.
Net income adjusted for the nonrecurring legal settlement was $186 million
for the first quarter of 2005, an increase of 56 percent over net income in the
first quarter of 2004 on a comparable basis.
In last year's first quarter, PPG reported net income of $119 million, including
$3 million to reflect the net increase in the value of the company's obligation
under its asbestos agreement. First quarter 2004 sales were $2.3 billion.
"Our sales in the first quarter were an all-time record for any quarter,
reflecting the continued growth in all segments of our balanced business portfolio,"
said Raymond W. LeBoeuf, chairman. The record for sales in a quarter had been
$2.4 billion in the second quarter of 2004.
Glass sales increased $17 million, or 3 percent, as higher volumes in automotive
replacement glass and flat glass businesses and the strengthening of foreign currencies
more than offset lower selling prices. Operating earnings were up $16 million
reflecting improved manufacturing efficiencies, increased volumes, higher equity
earnings and lower overhead expenses. These increases exceeded the impact of higher
energy and freight costs.
For the three months that ended March 31, the Pittsburgh-based company's glass
segment had net sales of $554 million, up from $537 million in the same period
of 2004. Operating income for the glass segment was $41 million, up from $25 million
in the January-March 2004 period.