PPG Industries Chairman and Chief Executive Officer Raymond W. LeBoeuf told employees recently that earnings per share for the third quarter are likely to be 50 to 60 cents compared with 88 cents a year ago. In an e-mail sent to employees worldwide, LeBoeuf said PPG announced last year that the company faced a challenging global business environment. "And the events of the past 12 months have only confirmed this view, including recent announcements of rising unemployment, the spread of economic weakness globally and plans by auto companies to reduce production," LeBoeuf said. "This disappointing news supports our belief that meaningful improvement in the global economy this year is unlikely. And the tragic events of Sept. 11 only add to the uncertainty."
LeBoeuf said PPG anticipated many of this year's economic conditions by quickly acting to lower costs and conserve cash and capital, without sacrificing service and technology. He added that cost-reduction initiatives and previously announced restructuring actions, which are more than 60% complete, will cut costs by more than $70 million before the end of the year.
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