PPG Reports on Quarter, Takes Restructuring Charge
April 26, 2001
PPG Industries' first quarter 2001 net income was $56 million, or 33 cents a share, including a pretax restructuring charge of $101 million. After-tax, the charge was $71 million, or 42 cents a share. Excluding the charge, net income was $127 million, or 75 cents a share. Sales for the quarter were $2.1 billion. First quarter 2000 net income was $139 million, or 79 cents a share, including an after-tax charge of $35 million, or 20 cents a share, to write off an equity investment. Excluding that charge, net income was $174 million, or 99 cents a share. Sales were $2.2 billion. PPG's intent to record a significant restructuring charge in the first quarter was announced last year. The actions -- globally and across the company, with emphasis on the company's coatings businesses -- are designed to reduce costs, increase efficiency and accelerate performance. According to Raymond W. LeBoeuf, chairman and chief executive, about two-thirds of the restructuring charge reflects a workforce reduction of nearly 1,500 people, about 4% of PPG's 2000 average global employment. The other third reflects asset write-downs for facility closings as well as production realignments to gain economies of scale. About 80% of the charge, as well as 80% of the workforce reduction, involves coatings operations. About half of the charge relates to operations outside North America.
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