PPG Shareholders Told to Expect Record Year
21 April 2000
PPG Shareholders Told to Expect Record Year
PITTSBURGH--April 20, 2000--The chairman and chief executive of PPG Industries (NYSE:PPG) told shareholders at their annual meeting today that they "should expect a record year, with strong sales and earnings" if world economic conditions remain good.Acknowledging "essentially flat" earnings for the past five years, Raymond W. LeBoeuf said substantially improved performance in 2000 will be propelled by continued Asian and Latin American economic recovery, improved margins in recently-acquired businesses and "strong organic growth" for PPG's coatings and specialty businesses.
As reported earlier today, PPG recorded first-quarter net earnings of $139 million, or 79 cents a share, including a charge of $35 million, or 20 cents a share, to write off an equity investment. First-quarter sales were a record $2.1 billion.
Last year PPG earned $647 million, or $3.68 a share, excluding one-time charges for acquisition-related costs and cost-reduction restructuring. Sales were a record $7.8 billion. The company's highest-ever earnings were 1998's $738 million, or $4.13 a share, excluding one-time gains and charges.
LeBoeuf said PPG is building "a foundation of growth that is driven primarily by coatings and specialty products. We're continuing to build on that vision with investments funded by our strong profitability and cash flow" to increase earnings growth and the consistency of that growth.
He described PPG's strategies for achieving these objectives as reshaping its business portfolio to advance financial performance, create growth-generating breakthrough products and help improve performance of PPG's customers.
PPG's 21 major acquisitions since early 1997 "offer greater growth potential while reducing our exposure to some of the most cyclical segments of the world economy," LeBoeuf said. He noted that PPG's sales in largely non-cyclical automotive aftermarkets have nearly doubled during the past 10 years, while those in "boom-and-bust" construction have been cut by one-third.
"More than 75 percent of our sales are projected to come from our growth businesses in 2000," he said.
"To seize opportunities in e-commerce or any of our traditional businesses, we as a company must move faster -- significantly faster -- in adopting change and making it a competitive advantage," LeBoeuf said. "We are aggressively working to create a culture in which we continually welcome change and make it work for us, not against us."
Re-elected to three-year terms as directors were Steven C. Mason, retired Mead Corp. chairman and chief executive; Thomas J. Usher, USX Corp. chairman and chief executive; and David R. Whitwam, Whirlpool Corp. chairman and chief executive.
Pittsburgh-based PPG is the world's leading producer of transportation coatings and a major supplier of industrial, packaging and other coatings, glass, fiber glass and chemicals. It has about 120 production operations in 23 countries.
Internet: www.ppg.com