16 October 2008 14:19 [Source: ICIS news]
TORONTO (ICIS news)--US coatings and chemicals producer PPG Industries said on Thursday that its third-quarter net income dropped almost 39% year on year to $117m, mainly due to $110m in restructuring charges.
However, adjusted third-quarter adjusted net income of $227m and adjusted earnings per share of $1.37 were comparable with last year’s quarter despite the negative impacts from two US Gulf Coast hurricanes and significantly weaker automotive original equipment manufacturing (OEM) markets, the company said.
Overall income from PPG’s business segments increased 10.5% to $451m on record quarterly sales of $4.2bn, up 37.5% from the year-earlier period, and the company was in a strong financial position despite challenging economic conditions, it said.
PPG’s segments are coatings, commodity chemicals, and optical and specialty materials.
"Our financial performance this quarter demonstrates both the successful execution of our transformation strategy and the continued strength of our commodity chemicals business," said CEO Charles Bunch.
During the quarter, PPG completed the sale of an approximate 60% interest in its automotive glass and services business and it announced business restructuring that would result in expected savings at an annual run rate of approximately $100m by the end of 2009, Bunch said.
"Financial discipline and flexibility remain PPG hallmarks,” Bunch added.
“We have further strengthened our balance sheet by already exceeding our full-year debt-reduction goals and increasing our cash on hand," he said.
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