Volume 37, Issue 5, May 2002
PPG Reaches Sales of $1.9 Billion; Strives to Strengthen Balance
Pittsburgh-based PPG Industries has announced its first-quarter 2002 results, a net income of $34 million on sales of $1.9 billion. This was a 39-percent decrease in net profit from the first quarter of 2001.
“Although some of the economic news this year is encouraging, we have not seen any significant signs of strengthening in our major markets other than North American vehicles,” said chairman and chief executive officer Raymond W. LeBoeuf. “As a result, we plan to maintain our focus on generating cash and reducing debt in 2002. Though the timing and pace of business expansion remains uncertain, I’m confident that our prudent actions are appropriate. If the global economy grows quicker and stronger than expected, we are well-positioned to reap the benefits.”
The company’s first-quarter net income included a one-time after-tax charge of $55 million, or 33 cents a share, for restructuring, and $9 million, or 5 cents a share, for the cumulative effect of a required accounting change.
Pilkington Expects to Report Improved Results
United Kingdom-based Pilkington plc says it expects results for the year ended March 31, 2002, scheduled to be released May 29, to show improved results … “despite the deterioration it has experienced in its major markets in the second half of the year.”
“For the fifth year in a row, Pilkington will report improved results for the year to March 31, 2002. This performance is despite the deterioration we have experienced in our major markets in the second half of the financial year, where trading conditions were as bad as the group has faced for several years. The new competitiveness, which Pilkington now enjoys, has underpinned our results,” said Paolo Scaroni, chief executive.
According to Pilkington’s statement, “the slowdown in economic conditions worldwide affected demand in the automotive and construction sectors, with requirements for glass easing as the year progressed.”
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