Local government and economic development officials spend a lot of time trying to lure new businesses to Pittsburgh, but perhaps they should give more recognition to the big corporations that have called the city home for a century or more, the chairman of PPG Industries said.
"No one has asked me how to keep our business in Pittsburgh," Raymond LeBoeuf told PPG's shareholders at the company's annual meeting yesterday at the Pittsburgh Marriott City Center, Uptown.
LeBoeuf's remarks came in response to shareholders' comments about PPG's $7 million contribution last year to the Pittsburgh Zoo and Aquarium. In return for the donation, which will be allocated over 10 years, PPG's moniker was added to the facility's name. LeBoeuf said the donation to the zoo from the company and the PPG Foundation are among recent efforts the paint, glass and chemicals maker has taken to raise its visibility. LeBoeuf acknowledged that PPG executives for years have deliberately followed a strategy to maintain a low profile.
But with its Downtown headquarters and 3,000-plus employees here, PPG, which had $8 billion in sales last year, "has an obligation to support the community," LeBoeuf said. In return for its long tradition of employment, charitable giving and civic support, LeBoeuf believes that PPG and other large employers should get more recognition for their commitment to the region.
"Pittsburgh isn't actively supporting the companies that are here. I wonder how vital Pittsburgh would be without companies like U.S. Steel, Alcoa and H.J. Heinz Co.," he said. "We pay taxes. We're good corporate citizens."
In comments after the meeting, LeBoeuf noted that PPG built its Downtown headquarters complex 20 years ago with no special economic incentives or tax abatements that are sometimes dangled in front of companies eyeing the region.
LeBoeuf criticized the half-percent payroll tax Mayor Tom Murphy has proposed putting on all city employers to alleviate Pittsburgh's budget woes. Coming on top of what he called already high business taxes, the proposed payroll tax "is not going in the right direction." He said he would welcome inquiries from the city, county or Pittsburgh Regional Alliance about how they could help PPG with launching new business initiatives.
"Before they go out looking for new people to come in, they should look at who's here. When we look at new initiatives, Pittsburgh is not the only option we look at."
In other business, LeBoeuf said PPG had weathered the recent sluggish economy better than its competitors by focusing on its core products rather than diversifying.
"We've stuck to our knitting," he said several times during his speech to shareholders.
For the first quarter, PPG reported net income of $78 million, or 46 cents per share, up from $34 million, or 20 cents a share a year ago. First-quarter results included a $6 million, or 3-cents-per-share charge for an accounting change in its retirement obligations; and a charge of $3 million , or 2 cents per share, to reflect a net increase in the value of the company's asbestos settlement agreement.
Sales were $2.1 billion, up from $1.9 billion in last year's first quarter.
Excluding the charges, the results were in line with analysts' predictions that PPG would earn 51 cents per share.
Last year's first-quarter income included charges taken to downsize operations. LeBoeuf said he didn't anticipate any major restructuring efforts this year that would result in significant layoffs.
Shareholders yesterday approved a proposal by the Teamsters General Fund that recommends PPG establish a policy to show expenses for all future stock options on its annual income statements.
PPG's shares closed yesterday at $46.08, up 59 cents.