By William Spain
PPG Industries Inc. said Thursday it tumbled to a loss in the
first quarter, hurt by restructuring charges and sales
declines.
Before the start of trading, PPG (PPG) said it lost $111
million, or 68 cents a share, on the period compared with a profit
of $100 million, or 61 cents a share, in the same quarter a year
ago. On an adjusted basis, the company said it would have earned 19
cents a share.
Sales came in at $2.8 billion, down 30%, on weak demand and
divestitures.
The average estimate of analysts polled by FactSet Research had
been for the company to earn 14 cents a share on sales of $3.13
billion.
"Our first quarter results reflect continued deterioration in
the global economy, resulting in lower demand in many of the
end-use markets we serve," said Charles Bunch, chief executive, in
the earnings report. "The most significant drop-offs occurred in
global automotive ... and in many industrial markets."
Shares of PPG rose 2% to $45.37.
Last month, the stock was downgraded to neutral from buy at
Merrill Lynch, with the broker citing incremental weakness in
caustic soda, ongoing deterioration in architecture, aerospace,
protective and marine coatings, expected pressure in glass, given
weaker nonresidential construction and continued broad-based
industrial demand weakness.
The company also announced in March that it would eliminate
about 2,500 jobs, or about 6% of its global workforce, and halt
contributions to its employee retirement plans in an effort to
reach $140 million in annual savings next year.
-By William Spain, 415-439-6400; AskNewswires@dowjones.com