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PPG REPORTS 3Q, SETS DIVIDEND, DIVESTING BIOMEDICAL

 PITTSBURGH, Oct. 14 /PRNewswire/ -- PPG Industries (NYSE: PPG) today reported that excluding charges for restructuring, third quarter income was $76.1 million, or 72 cents a share, after deducting the effect of the increased U.S. income tax rate equal to seven cents a share and one-time charges to resolve legal disputes equal to three cents a share.
 Sales were $1.41 billion.
 Net income after deducting the restructuring charges was $24.8 million, or 23 cents a share.
 "The restructuring charges we are taking mainly involve greater streamlining and focus in glass operations," said Jerry E. Dempsey, board chairman and chief executive officer, "including previously discussed plant closings, as well as write-downs of inactive facilities and disposition of a commercial construction fabrication operation. Also included are charges for cost reduction actions in PPG's European operations."
 Third quarter 1992 net income was $66.0 million, or 62 cents a share, including a charge of 21 cents a share for an award in a glass technology dispute, on sales of $1.44 billion.
 Excluding a one-time net charge reported in the first quarter for mandated accounting changes, nine-month net income was $241.1 million, or $2.27 a share, on sales of $4.38 billion, compared with $251.5 million, or $2.37 a share, and sales of $4.40 billion in the 1992 period. Results in 1993 include a previously announced after-tax gain of $16.7 million, or 16 cents a share, from the sale of PPG's interest in an insurance company.
 With effects of the accounting changes included, PPG reported a net loss for the nine months of $25.6 million, or 24 cents a share.
 Also, PPG's board of directors declared a regular quarterly dividend of 54 cents a share, payable Dec. 10 to shareholders of record Nov. 10.
 "Third quarter sales declined from a year ago, essentially because of weak business conditions in Europe and unfavorable effects of European currency translation," Dempsey said. "However, our overall performance -- despite only slight growth in the North American economy and further European deterioration -- reinforces contributions of our quality and efficiency improvement measures."
 Record third quarter and nine month operating earnings were achieved by the coatings and resins segment despite a modest sales decline. The effect of negative currency translation and lower European volumes more than offset strong North American volume gains.
 Glass segment operating earnings improved as the North American sales recovery continued. Overall, glass sales were lower as European volume and pricing declined. Unfavorable currency translation also reduced sales.
 Chemical segment sales improved as specialties -- such as silicas, fine chemicals and Transitions optical lenses -- led increased volumes. Segment operating earnings were affected adversely by weaker prices, particularly for caustic soda, and higher energy costs.
 In addition, Dempsey said that discussions are under way regarding the sale of PPG's medical electronics business. With sales of about $200 million, the Biomedical Systems Division was created in the mid-1980s through acquisitions in the United States and Europe.
 PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 CONDENSED STATEMENT OF OPERATIONS (unaudited)
 3 Months Ended 9 Months Ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (millions)
 Net sales $1,405.4 $1,440.8 $4,375.7 $4,400.6
 Cost of sales 884.9 921.9 2,764.7 2,774.6
 GROSS PROFIT 520.5 518.9 1,611.0 1,626.0
 Other expenses:
 Selling & other 266.0 264.4 807.9 804.1
 Depreciation 82.2 88.4 250.8 265.7
 Interest 24.5 36.5 77.9 107.7
 Other (earnings) charges
 - net 0.4 22.3 (45.8) 10.9
 Loss (gain) from business
 divestitures &
 realignments 87.0 1.8 88.4 10.6
 INCOME BEFORE INCOME
 TAXES & MINORITY
 INTEREST 60.4 105.5 431.8 427.0
 Income taxes 30.8 39.6 179.3 171.4
 Minority interest 4.8 (0.1) 11.4 4.1
 Income before cumulative
 effect, changes in
 accounting methods 24.8 66.0 241.1 251.5
 Cumulative effect,
 accounting changes:
 Retiree benefits, net
 of income taxes -- -- (357.1) --
 Income taxes -- -- 90.4 --
 NET INCOME (LOSS) $ 24.8 $ 66.0 $ (25.6) $ 251.5
 Earnings per share:
 Income before
 cumulative effect,
 accounting changes $ 0.23 $ 0.62 $ 2.27 $ 2.37
 Cumulative effect,
 accounting changes:
 Retiree benefits -- -- (3.36) --
 Income taxes -- -- 0.85 --
 EARNINGS (LOSS)
 PER SHARE $ 0.23 $ 0.62 $ (0.24) $ 2.37
 Avg. shares outstanding 106.1 106.1 106.2 106.1
 CONDENSED BALANCE SHEET (unaudited)
 Sept. 30 Dec. 31
 1993 1992
 (millions)
 Current assets:
 Cash & cash equivalents $ 61.3 $ 61.4
 Receivables - net 1,106.6 1,023.4
 Inventories 735.9 742.3
 Other 208.9 123.7
 Total current assets 2,112.7 1,950.8
 Investments 265.2 233.6
 Property less accumulated depreciation 2,839.2 2,971.5
 Other assets 550.9 505.8
 TOTAL $5,768.0 $5,661.7
 Current liabilities:
 Short-term debt & lease obligations $ 433.9 $ 434.4
 Accounts payable & accrued liabilities 904.9 809.0
 Income taxes 4.5 9.6
 Total current liabilities 1,343.3 1,253.0
 Long-term debt & lease obligations 781.4 905.3
 Deferred income taxes 232.5 441.9
 Accumulated provisions 893.5 302.3
 Minority interest 51.8 60.3
 Shareholders' equity 2,465.5 2,698.9
 TOTAL $5,768.0 $5,661.7
 BUSINESS SEGMENT INFORMATION (unaudited)
 3 Months Ended 9 Months Ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (millions)
 Net sales
 Coatings & Resins $ 547 $ 568 $1,735 $1,761
 Glass 521 541 1,647 1,650
 Chemicals 296 277 869 834
 Other 42 55 125 156
 TOTAL $1,406 $1,441 $4,376 $4,401
 Operating income
 Coatings & Resins $ 93 $ 90 $ 314 $ 288
 Glass 48 (5) 159 99
 Chemicals 33 47 114 145
 Other (4) 1 (13) --
 Business divestitures
 & realignments expense (87) (2) (88) (11)
 TOTAL 83 131 486 521
 Interest - net (21) (33) (68) (95)
 Other unallocated
 corporate income
 (expense) - net (1) 7 14 1
 INCOME BEFORE INCOME
 TAXES, MINORITY
 INTEREST & ACCOUNTING
 CHANGES $ 61 $ 105 $ 432 $ 427
 -0- 10/14/93
 /CONTACT: John S. Ruch of PPG Industries, 412-434-2445/
 (PPG)


CO: PPG Industries ST: Pennsylvania IN: CHM SU: ERN

CD -- PG003 -- 2011 10/14/93 08:28 EDT
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Date:Oct 14, 1993
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