Breaking News
FONT-SIZE Plus   Neg
Share SHARE

PPG Industries Sees Q1 Earnings Above Street, To Layoff 2,000 Jobs

RELATED NEWS
Trade PPG now with 

Paint maker PPG Industries (PPG: Quote), Thursday issued its earnings guidance for the first-quarter that is expected to come in ahead of current Wall Street estimates. The company also detailed a restructuring plan to reduce costs, which would layoff of 2,000 jobs, mostly in Europe.

The Pittsburgh-based company now expects first-quarter 2012 earnings in a range of $0.02 to $0.07 per share.

PPG anticipates adjusted earnings, which excludes non-recurring charges, between $1.75 and $1.80 per share.

Analysts polled by Thomson Reuters currently estimate earnings of $1.44 per share for the quarter. Analysts' estimates typically exclude one-time items. The company reported adjusted earnings of $1.40 per share for the first quarter last year.

Chief Executive Charles Bunch said, "During the quarter, we saw the overall pace of business activity improve compared with the fourth quarter 2011. This trend was aided by modest customer restocking and normal seasonal factors, and lower natural gas costs in the United States are also contributing to our results."

PPG expects to record non-recurring charges in the first-quarter related to business restructuring, environmental remediation and acquisition-related expenses.

PPG said it will restructure its global architectural coatings businesses in Europe in order to reduce its expenses. The restructuring actions will lead to an after-tax charge of about $1.06 per share and impact about 2,000 employees, the company said in a statement.

"These cost-reduction actions, while always difficult decisions, are needed to ensure that our cost structure is appropriate for business conditions and that all of our operations remain competitive globally," said, Chief Executive Charles Bunch.

Bunch said the restructuring, when completed, would result in annualized savings of about $140 million, with 2012 partial-year savings of between $40 million and $50 million.

PPG will also record an after-tax charge of $0.64 per share related primarily to continued environmental remediation activities at the company's New Jersey manufacturing plant and associated sites.

PPG is currently trading on the NYSE at $96.08, up 2.31%, on a volume of 3.3 million shares, above the three-month average volume of about one million.

Register
To receive FREE breaking news email alerts for PPG Industries Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Beverages giant Coca-Cola Co. reported Tuesday a profit for the third quarter that decreased 14 percent from last year, despite higher worldwide volumes, reflecting a revenue drop. Adjusted earnings per share matched analysts' expectations, even as quarterly revenues missed their estimates. Following the announcement, the company's shares are trading more than five percent lower in early deals. Apple Inc. said Monday that its fourth quarter profit rose 13% from last year, driven by strong sales of its iPhones and Mac computers. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly sales. At the same time, the company gave an upbeat revenue forecast for the current quarter, which includes the all important holiday season. Programmable chipmaker Xilinx Inc. (XLNX) said Thursday after the markets closed that its second quarter profit rose 21% from last year, helped by higher revenue and better cost control. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue....
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.