Reports Higher Glass Sales, Lower Profits
PPG Industries has reported fourth quarter net income of $113 million on sales
of $2.51 billion, a record for any fourth quarter. In the fourth quarter 2004,
PPG reported net income of $183 million on sales of $2.41 billion.
For all of 2005, the Pittsburgh-based glass manufacturer recorded net income
of $596 million on sales of $10.2 billion, a record for any year. In 2004, the
company recorded net income of $683 million and sales of $9.51 billion.
Fourth quarter glass sales increased $24 million, or 5 percent, due to higher
volumes across most businesses and higher selling prices, which were partially
offset by the impact of weakening foreign currencies. However, the glass businesses
posted an operating loss of $1 million for the quarter, down $29 million due to
the impact of inflation, including $28 million in higher energy costs, and lower
other income. These decreases were partially offset by improved volumes and selling
prices, as well as lower manufacturing and overhead costs.
Charles E. Bunch, PPG's chairman and chief executive officer, said, "As
we look ahead to 2006, we see continued profitable growth opportunities, but also
see continued pressure due to the high energy and raw material pricing environment.
As a result, in addition to the annual cost reductions that we consistently deliver,
we are finalizing plans to take severance and restructuring actions to further
streamline our operations that would result in first-quarter charges in the range
of $50 million to $70 million.
"Our focus on profitable growth, meanwhile, remains unchanged. We anticipate
continued organic growth, as evidenced by the performance of many of our businesses
in 2005, including optical products, architectural coatings and aerospace products.
Furthermore, we want to accelerate that growth through potential acquisitions,
leveraging our strong balance sheet and consistent free cash flow. This growth
will position us to continue our tradition of rewarding shareholders."
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES CONDENSED STATEMENT OF OPERATIONS
| (All amounts in millions)
||3 Months Ended Dec. 31
||12 Months Ended Dec. 31
|Cost of sales
|Glass Segment, Net Sales
|Glass Segment, Operating Income (loss)