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PPG REPORTS ON 2ND QUARTER, DIRECTORS RAISE DIVIDEND

 PITTSBURGH, July 15 /PRNewswire/ -- PPG Industries (NYSE: PPG) today reported second quarter net income was $106.2 million, or $1 a share, on sales of $1.52 billion, compared with $106.7 million, or $1.01 a share, on sales of $1.51 billion in the year-earlier period.
 The 1993 quarter's earnings do not include any costs associated with recently announced plans to close an automotive replacement windshield plant and a commercial glass products plant.
 Excluding a one-time net charge reported in the first quarter for mandated accounting changes, six-month net income was $216.3 million, or $2.04 a share, on sales of $2.97 billion, compared with $185.5 million, or $1.75 a share, on sales of $2.96 billion in the first half of 1992. Included in 1993 first half results was a previously announced after-tax gain of $16.7 million, or 16 cents a share, from the sale of interest in an insurance company. Including effects of the accounting changes, PPG reported a net loss for the six-month period of $50.4 million, or 47 cents a share.
 Also today, PPG's board of directors raised the quarterly dividend to 54 cents a share from the 50-cent level in effect since the fourth quarter of 1992, payable Sept. 10 to shareholders of record Aug. 10. PPG has paid dividends without interruption since 1899 and, with this increase, raised the dividend in 22 consecutive years.
 Vincent A. Sarni, board chairman and chief executive officer, said the quarter's sales were modestly higher than a year ago as volume gains more than offset the unfavorable effects of European currency translation.
 "Our performance in the face of modest U.S. economic improvement and the absence of recovery in Europe demonstrates the continuing benefits of our quality and efficiency initiatives in this challenging business environment," he said.
 Coatings and resins operating earnings reached new second-quarter and first-half highs on modest sales improvements. North American volumes increased for automotive original, automotive refinish and industrial coatings; refinish and industrial coatings benefited from improved prices. Volume declines in Europe and the negative effects of European currency translation somewhat offset these volume and price gains.
 Glass sales continued to recover. Improved North American volumes, particularly for automotive original equipment, automotive replacement and flat glass, as well as for fiber glass reinforcements, overcame general weakness in European volume and pricing. Effects of currency translation reduced segment sales. Operating earnings were adversely affected by the segment's inability to recover inflationary costs.
 Chemicals sales also gained on improved volumes and some commodity product prices. Led by strong gains for Transitions optical lenses, specialty chemicals in general recorded improved volumes. However, segment operating earnings were adversely affected by weaker caustic soda prices and higher energy costs.
 PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 CONDENSED STATEMENT OF OPERATIONS (unaudited)
 3 Months Ended 6 Months Ended
 June 30 June 30
 1993 1992 1993 1992
 (millions)
 Net Sales $1,523.6 $1,513.1 $2,970.3 $2,959.8
 Cost of sales 965.8 941.4 1,879.8 1,852.7
 GROSS PROFIT 557.8 571.7 1,090.5 1,107.1
 Other expenses:
 Selling & other 274.1 265.1 541.9 539.7
 Depreciation 84.0 88.1 168.6 177.3
 Interest 25.4 34.9 53.4 71.2
 Other (earnings) charges
 - net (10.9) (5.6) (46.2) (11.4)
 Loss (gain) from business
 divestitures &
 realignments 0.7 3.7 1.4 8.8
 INCOME BEFORE INCOME
 TAXES & MINORITY
 INTEREST 184.5 185.5 371.4 321.5
 Income taxes 73.8 77.4 148.5 131.8
 Minority interest 4.5 1.4 6.6 4.2
 Income before cumulative
 effect, changes in
 accounting methods 106.2 106.7 216.3 185.5
 Cumulative effect,
 accounting changes:
 Retiree benefits, net
 of income taxes -- -- (357.1) --
 Income taxes -- -- 90.4 --
 NET INCOME (LOSS) $ 106.2 $ 106.7 $ (50.4) $ 185.5
 Earnings per share:
 Income before
 cumulative effect,
 accounting changes $1.00 $1.01 $2.04 $1.75
 Cumulative effect,
 accounting changes:
 Retiree benefits -- -- (3.36) --
 Income taxes -- -- 0.85 --
 EARNINGS (LOSS) PER SHARE $1.00 $1.01 $(0.47) $1.75
 Avg. shares outstanding 106.2 106.1 106.2 106.2
 CONDENSED BALANCE SHEET (unaudited)
 June 30 Dec. 31
 1993 1992
 (millions)
 Current assets:
 Cash & cash equivalents $ 53.9 $ 61.4
 Receivables - net 1,139.6 1,023.4
 Inventories 741.6 742.3
 Other 199.9 123.7
 Total current assets 2,135.0 1,950.8
 Investments 253.2 233.6
 Property less accumulated depreciation 2,908.0 2,971.5
 Other assets 546.1 505.8
 TOTAL $5,842.3 $5,661.7
 Current liabilities:
 Short-term debt & lease obligations $ 522.1 $ 434.4
 Accounts payable & accrued liabilities 862.9 809.0
 Income taxes 33.8 9.6
 Total current liabilities 1,418.8 1,253.0
 Long-term debt & lease obligations 790.8 905.3
 Deferred income taxes 217.3 471.6
 Accumulated provisions 840.1 272.6
 Minority interest 47.2 60.3
 Shareholders' equity 2,528.1 2,698.9
 TOTAL $5,842.3 $5,661.7
 BUSINESS SEGMENT INFORMATION (unaudited)
 3 Months Ended 6 Months Ended
 June 30 June 30
 1993 1992 1993 1992
 (millions)
 Net Sales
 Coatings & Resins $ 615 $ 611 $1,188 $1,193
 Glass 575 573 1,126 1,109
 Chemicals 291 281 573 557
 Other 42 48 83 101
 TOTAL $1,523 $1,513 $2,970 $2,960
 Operating income
 Coatings & Resins $121 $111 $221 $198
 Glass 55 64 111 104
 Chemicals 38 45 81 98
 Other (5) (4) (9) (1)
 Business divestitures
 & realignments expense -- (4) (1) (9)
 TOTAL 209 212 403 390
 Interest - net (22) (30) (47) (62)
 Other unallocated
 corporate income
 (expense) - net (3) 4 15 (6)
 INCOME BEFORE INCOME
 TAXES, MINORITY
 INTEREST & ACCOUNTING
 CHANGES $ 184 $ 186 $ 371 $ 322
 -0- 7/15/93
 /CONTACT: John S. Ruch of PPG Industries, 412-434-2445/
 (PPG)


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

DM -- PG004 -- 1816 07/15/93 09:43 EDT
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Date:Jul 15, 1993
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