PPG Industries Inc. (PPG: Quote) said it would report nonrecurring charges in the first quarter 2012 related to business restructuring, environmental remediation and acquisition-related expenses. Therefore, first-quarter 2012 earnings per share is expected to be in the range of 2 to 7 cents, while adjusted earnings per share before the nonrecurring charges are estimated to be between $1.75 and $1.80.
For the first quarter, PPG would report an after-tax charge of some $164 million, or $1.06 per share, related to business restructuring actions, the majority of which would occur in Europe. The pretax restructuring charge of $208 million includes cash costs of nearly $160 million and about $48 million related to the net write-off of certain assets and other non-cash items. Of the approximate $160 million of cash costs about 80 percent would be spent in 2012, with the remainder to be spent in 2013.
PPG Chairman and Chief Execuitive noted that the restructuring actions would impact about 2,000 employees, mainly in PPG's global architectural coatings businesses, and in other PPG businesses and administrative functions in Europe, where some actions would be implemented following consultation with applicable works councils. When completed, PPG projects that these restructuring actions should result in annualized, pretax savings of about $140 million, with 2012 partial-year savings of between $40 million and $50 million.
by RTT Staff Writer
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