PPG Chairman: Should Outperform Competitors in `Difficult' Business Environment

    PITTSBURGH--April 19, 2001--PPG Industries should outperform many of its competitors in the current "difficult" economy by continuing "to do the things we do best" while pursuing a consistent three-point strategy, Chairman and Chief Executive Raymond W. LeBoeuf said at the company's annual shareholders meeting today.
    PPG seeks to increase earnings growth and consistency while generating a 15 percent minimum average return on capital over time with a plan "that we believe creates value over the course of a business cycle," LeBoeuf said.
    Strategically, PPG constantly builds a better mix of businesses, creates breakthrough technologies and improves customer results, he said. "Generally speaking, after each economic downturn we have come out stronger and reached new heights, roughly doubling earnings per share from peak to peak while generating about a 10.5 percent annual growth trend in the process."
    The Pittsburgh-based maker of coatings, glass, fiber glass and chemicals, founded in 1883, has paid dividends to its shareholders without interruption since 1899. Dividends received by shareholders have increased annually for 31 years.
    In 2000, PPG earned $620 million, or $3.57 a share, on sales of $8.6 billion. First quarter net earnings reported earlier today were $56 million, or 33 cents a share, including a $101 million charge for restructuring intended to enhance efficiency, productivity and financial performance, especially in coatings operations. Excluding the charge, earnings were $127 million, or 75 cents a share. First quarter sales were $2.1 billion.
    LeBoeuf noted that 20 of 23 acquisitions in the past four years expanded PPG's coatings portfolio, its largest business segment, which "has displayed greater earnings growth and consistency than our company as a whole." Coatings generated more than half of PPG's 2000 sales and operating earnings.
    "With more of our attention now focused inward, we're making progress on integrating our acquisitions, which always present cost-saving opportunities," LeBoeuf said.
    "It will take several years to get our acquisitions where we want them to be, which is exactly what we expected at the time we made those transactions. With the exception of just three, our acquisitions are in line with our expectations -- and we're working to bring them up to speed.
    "Regardless of whether they're a recent acquisition or a long-standing business, every business in PPG is expected to generate margins better than its peers," he noted.
    PPG shareholders elected four incumbent directors to three-year terms: James G. Berges, 53, president, Emerson Electric; Erroll B. Davis Jr., board chairman, president and chief executive, Alliant Energy; Allen J. Krowe, retired vice chairman, Texaco; and Robert Mehrabian, board chairman, president and chief executive, Teledyne Technologies. Terms of PPG's six other directors expire in 2002 or 2003.
    Shareholders also approved board proposals to establish annual and long-term performance-based incentive compensation plans for executives that are tax-deductible under the federal tax code.
    Two other proposals, opposed by PPG's board, were defeated. One, from the Teamsters General Fund, urged a change in board elections from staggered three-year terms to one-year terms. The other, from Amalgamated Bank of New York LongView Fund, urged adoption of a workplace code of ethics based on an International Labor Organization convention.

    Internet: www.ppg.com

    Additional Information

    Information on PPG's first quarter 2001 performance, as well as historical performance, is available at Financial on PPG's Web site: www.ppg.com.

    Forward-Looking Statement

    Statements in this news release relating to matters that are not historical facts are forward-looking statements reflecting the company's current view with respect to future events and financial performance. These matters involve risks and uncertainties that affect the company's operations, as discussed in PPG Industries' Annual Report on Form 10-K filed with the Securities and Exchange Commission. Accordingly, many factors could cause actual results to differ materially from the company's forward-looking statements.
    Among these factors are increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials, the ability to maintain favorable supplier relationships and arrangements, economic and political conditions in international markets, the ability to penetrate existing, developing and emerging foreign and domestic markets, which also depends on economic and political conditions, and foreign exchange rates and fluctuations in those rates. Further, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
    Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the company's consolidated financial condition, operations or liquidity.