(RTTNews) - Coating, glass and chemical products maker PPG Industries Inc. (PPG: News ) reported Thursday a higher profit for the third quarter, reflecting sharply lower one-time charges. On an adjusted basis, profit fell from last year on a 24% drop in net sales, yet topped market projections. Looking ahead to the fourth quarter, the Pittsburgh, Pennsylvania-based company said it expects only modest improvement in the overall economy, and also anticipates that global automotive production will remain at least at third quarter levels.

Third-quarter net income attributable to PPG was $159 million or $0.96 per share, higher than prior year's $117 million or $0.70 per share.

The latest quarter results included a charge of $2 million or $0.01 per share, to reflect the net increase in the current value of the company's obligation under its proposed asbestos settlement, which is pending court proceedings. In contrast, the prior-year quarter results included charges of $110 million or $0.67 per share for business restructuring and $3 million or $0.02 per share for the proposed asbestos settlement, partly offset by a gain of $3 million or $0.02 per share on the divestiture of the AG&S business.

On an adjusted basis, excluding items, third-quarter net income was $161 million or $0.97 per share, lower than $$227 million or $1.37 per share in the same quarter last year.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.
According to Charles Bunch, PPG chairman and chief executive officer, the company's third-quarter adjusted earnings per share showed ongoing growth over the first two quarters of 2009. The company reported adjusted earnings per share in the first and second quarters of 2009 of $0.19 and $0.91, respectively.

Net sales in the third quarter declined 24% to $3.23 billion from $4.23 billion in the prior year quarter. Eight Wall Street analysts had a consensus estimate of $3.13 billion.

The company noted that of the total sales decline, 5% was due to the 2008 divestiture of a majority interest in the automotive glass and services, or AG&S, business. Negative foreign currency translation also impacted the results badly. Year-over-year sales volumes decreased 12%, with declines in most regions, except Asia/Pacific. Selling prices fell about $150 million from last year, primarily due to lower commodity chemicals pricing.

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

 1   2   3   Next Page