Looking to right-size, PPG sees improvements

As it makes plans to right-size the organization, PPG Industries announced net sales from continuing operations were up 1% to $3.662 billion.

Net income declined to $322 million, down from $1.262 billion in the same quarter a year ago. However, income from continuing operations increased 15%.

“Both of our coatings segments delivered all-time-record first quarter earnings, and the glass segment delivered its highest first quarter earnings in more than 10 years,” said CEO Charles Bunch. “Our ongoing cost and productivity initiatives, continued PPG volume growth in certain end-use markets and an accelerating company growth rate in emerging regions aided our segment results.”

PPG also announced a business-restructuring program that includes actions necessary to achieve cost synergies related to recent acquisitions. In addition, the program aims to further right-size employee headcount and production capacity in certain businesses and regions based on current product demand and in various global administrative functions. A pretax restructuring charge of $135 million to $140 million will be recorded in PPG's second quarter 2015 financial results, of which about 85% represents cash charges. PPG said it expects these restructuring actions will result in full-year pretax savings of $100 million to $105 million by 2017, including 2015 partial-year savings of $15 million to $20 million.

“Looking ahead, we anticipate stronger global economic growth in the coming quarters, including a resumption of growth in Europe and a return to a higher growth rate in the U.S.,” Bunch said.