US PPG posts $111m Q1 loss, sales down 30%

16 April 2009 16:37  [Source: ICIS news]

TORONTO (ICIS news)--PPG Industries posted a first-quarter loss of $111m (€84m) compared with a gain of $100m a year earlier, reflecting lower demand from end-user markets, the US coatings and chemicals producer said on Thursday.

The company’s sales dropped by 30% compared to the first quarter of 2008, falling to $2.8bn from $4.0bn.

The results for the three months ended 31 March included a $141m charge for business restructuring while the 2008 first quarter included acquisition-related costs of $89m for PPG’s acquisition of SigmaKalon, the company said

“Our first quarter results reflect continued deterioration in the global economy, resulting in lower demand in many of the end-use markets we serve,” CEO Charles Bunch said.

“The most significant drop-offs occurred in global automotive OEM and in many industrial markets,” he said.

“We quickly implemented broad actions, including business restructurings and general spending controls which were successful in offsetting some of the earnings impact from the lower demand levels,” Bunch said.

For the current second quarter, PPG expected “some seasonal demand growth” but business activity would remain low in comparison with recent years, he added.

($1 = €0.76)

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By: Stefan Baumgarten
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