UPDATE: PPG Eyes More Cost Cutting As Profit Slumps 65%
17 January 2009 - 3:48AM
Dow Jones News
By Dow Jones
NEW YORK (Dow Jones) -- PPG Industries Inc. said Friday its
fourth-quarter profit tumbled 65% from the year-earlier period,
even as its sales for the quarter hit a record high.
The Pittsburgh maker of paints and specialty chemicals said its
net income fell to $71 million, or 43 cents a share, from $200
million, or $1.22 a share in the year-ago period.
The latest earnings figure included a one-time boost of 2 cents
a share related to an asbestos settlement, which is still pending
court proceedings.
Sales rose 3% to $3.19 billion from $3.10 billion in the fourth
quarter of 2007. For all of 2008, sales totaled $15.8 billion,
compared to $12.2 billion the prior year.
The results missed Wall Street expectations. Analysts had tipped
adjusted earnings of 53 cents a share, above the actual result of
41 cents, according to a survey by FactSet Research.
"Without question, the fourth quarter was very challenging,"
said PPG Chairman and Chief Executive Officer Charles Bunch. "Our
early read on 2009 is that the first quarter and possibly the first
half of the year is shaping up to be an even greater challenge than
the fourth quarter 2008 due to further weakening demand."
Bunch said that the company will "continue to evaluate further
cost actions that may result in additional restructuring and
related cost savings during the year."
PPG (PPG) shares rose with the broader market Friday, up almost
1% in early morning trade at $41.80.
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.