Printer Friendly

SARNI SEES PPG GROWTH DESPITE WEAK ECONOMY

 SARNI SEES PPG GROWTH DESPITE WEAK ECONOMY
 PITTSBURGH, April 16 /PRNewswire/ -- "Constant preoccupation" with


quality, efficiency, cost reduction and global expansion is the key to successful performance for PPG Industries (NYSE: PPG) in a sluggish economy, the firm's chief executive officer said today.
 Board Chairman Vincent A. Sarni told shareholders at PPG's annual meeting in Pittsburgh that economic activity this decade will be less vigorous than in the 1980s. "But I am confident that even if there is modest economic growth, in the 1.5 to 2 percent range, your company should do well," he added.
 For the second consecutive year, shareholders overwhelmingly voted down a proposal recommending that the board act to reincorporate in another state.
 Earlier today the global maker of glass, fiber glass, coatings and chemicals announced first quarter earnings of $78.8 million, or 74 cents a share, on sales of $1.4 billion. As reported previously, net earnings for all of 1991 were $276.2 million, or $2.60 a share, on sales of $5.7 billion.
 In his meeting remarks, Sarni said PPG is emerging from the recession stronger as a result of successful strategies and actions that have reduced its vulnerability to economic downturns.
 PPG's chairman asserted, however, that the company must continually do "a better job of running our businesses in a cost-driven fashion than we have in the past." He said PPG must obtain a higher return on capital, accelerate marketing of new products and press process research to "be better than our competitors on the factory floor in terms of quality and cost."
 He noted that the company reduced manufacturing, raw materials and overhead costs by $150 million last year, and PPG's debt-to-capital ratio is targeted to drop to about 33 percent by year's end from an early-1991 peak of 41 percent and current 38 percent.
 He also said PPG reduced manufacturing-generated wastes by about 110,000 tons, or nearly 30 percent, since 1988.
 "What would have been a good performance for PPG in the tough environment of 1991 was somewhat obscured by problems in two of our businesses -- architectural finishes and primary glass," Sarni said. He emphasized that other business units performed relatively well last year.
 He told shareholders PPG's architectural finishes unit is being restructured to achieve cost-competitiveness and profitability. A leaner, low-cost flat glass operation, he added, will become profitable as the global economy strengthens and helps to eliminate global problems of overcapacity, depressed demand and low prices.
 James F. Junge, chairman, Pitcairn Properties Inc., a director since 1960, and Robert W. Morse, scientist emeritus, Woods Hole Oceanographic Institution, a director since 1969, retired from PPG's board at the meeting.
 Elected to three-year terms were Lucie J. Fjeldstad, vice president and general manager, multimedia, IBM Corp., who joined PPG's board last October, and Allen J. Krowe, senior vice president and chief financial officer, Texaco Inc., a director since 1987. Also reelected was Douglas D. Danforth, retired chairman of Westinghouse Electric Corp., a director since 1981.
 Shareholders approved amendments to the stock option plan for key PPG executives. The amended plan is intended to continue to provide a means of tying long-term executive compensation directly to share value.
 Deloitte & Touche were reelected auditors for the company.
 -0- 4/16/92
 /CONTACT: John S. Ruch of PPG Industries, 412-434-2445/
 (PPG) CO: PPG Industries ST: Pennsylvania IN: CHM SU:


CD -- PG015 -- 9423 04/16/92 15:26 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 16, 1992
Words:568
Previous Article:PREMARK REPORTS SHARPLY HIGHER EARNINGS
Next Article:AESTHETIC PLASTIC SURGEONS SAY FDA DECISION ON SILICONE GEL IMPLANTS IS 'TOO LITTLE, TOO LATE'


Related Articles
ROMPALA HEADS PPG COATINGS GROUP, SUCCEEDS MOSIER
PPG HONORS EIGHT FIRMS AS QUALITY SUPPLIERS
PPG REPORTS ON QUARTER, DIRECTORS SET DIVIDEND
PPG REPORTS ON SECOND QUARTER; DIRECTORS SET DIVIDEND
PPG REPORTS ON THIRD QUARTER, DIVIDEND RAISED
PPG REPORTS 1992 RESULTS, DIRECTORS SET DIVIDEND
PPG HONORS 10 FIRMS AS QUALITY SUPPLIERS
CHANGE DRIVES PERFORMANCE, PPG's CEO TELLS SHAREHOLDERS
PPG REPORTS ON FIRST QUARTER, DIRECTORS SET DIVIDEND
SARNI RETIRES AS PPG CHAIRMAN/CEO

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters