Destocking may persist longer for auto industry - PPG

16 January 2009 17:42  [Source: ICIS news]

HOUSTON (ICIS news)--De-stocking will likely persist in the automobile industry, even though it has apparently ended for other customers of US producer PPG Industries, the CEO said on Friday.

A lot of PPG's automotive customers have yet to restart operations in a significant way, said Charles Bunch during a conference call with investors. "We are still going through de-stocking this month." he said, adding that he expected de-stocking to continue until February or March.

For customers in other segments, activity is increasing, although from the exceptionally low levels set in December, Bunch said.

PPG had posted on Friday a 64.5% drop in fourth-quarter net income amid “dramatic” volume declines in several of its industrial end-use markets due to the rapid deterioration in the global economy. The company's industrial coatings and glass segments were most severely impacted and reported operating losses in the quarter, according to the CEO.

PPG produces coatings, glass and chlor-alkali.

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By: Al Greenwood
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