logo
Plus   Neg
Share
Email

PPG Industries To Undergo Restructuring To Reduce Global Cost Structure - Quick Facts

PPG Industries, Inc. (PPG) announced Monday that it has approved significant and broad restructuring actions to reduce its global cost structure. The plan includes a voluntary separation program that was offered in the U.S. and Canada.

The company said it is taking decisive action to further adjust our cost base given the broad economic impact relating to the COVID-19 pandemic and the recovery timeline in a few end-use markets. These measures will enable the company to come out of the crisis with lower structural costs.

The company expects the planned actions to deliver $160 to $170 million in annual pre-tax cost savings when completed, with approximately $25 to $35 million of savings projected in 2020. The remainder of the annual cost savings is anticipated to be substantially realized by year-end 2021.

PPG will also record a restructuring charge of $160 to $180 million pretax, $125 to $140 million after-tax, or $0.52 to $0.58 per share, in the second quarter 2020, which is nearly all related to employee severance.

Additionally, it will incur other associated restructuring-related costs of approximately $10 million over future quarters. The total cash outlay to complete these actions is approximately $180 million, with about $110 million expected in 2020 and the remainder in 2021. The cash outlay includes capital expenditures to relocate certain operational activities.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Pfizer said Friday it reached a multi-year deal with Gilead Sciences to manufacture and supply Gilead's investigational antiviral remdesivir for COVID-19 patients. Ferring Pharmaceuticals US is recalling various nasal sprays citing superpotency or amounts of desmopressin higher than specified, the U.S. Food and Drug Administration announced in a statement. The recall involves all lots on the market of DDAVP Nasal Spray 10 mcg/0.1mL, Desmopressin Acetate Nasal Spray 10 mcg/0.1mL, and STIMATE Nasal Spray 1.5 mg/mL. U.S. President Donald Trump has issued executive orders to ban Chinese mobile application TikTok as well as WeChat, citing a threat to national security and its economy. China's ByteDance Ltd. owns TikTok, a video-sharing mobile app, while Tencent Holdings Ltd. owns WeChat, a messaging, social media, and electronic payment app.
Follow RTT