PPG seeks buyers, partners for glass, chemicals businesses
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PPG Industries Inc. is actively seeking buyers or joint venture partners for its underperforming glass and chemicals businesses and will downsize those units if they aren't sold, company Chairman Charles Bunch said.
Speaking to reporters following PPG's annual meeting yesterday at the Hilton Pittsburgh, Downtown, Mr. Bunch said the effort to divest the struggling glass and chemicals businesses was in the early stages but that a number of potential investors had expressed interest. PPG was founded in 1883 as the Pittsburgh Plate Glass Co.
PPG's overall revenues shot up by 8 percent to $11 billion last year, fueled by sales and acquisitions in its coatings and optical products -- the business units the company has identified as its future growth engines.
The company spent about $480 million on 12 acquisitions in 2006 primarily in coatings and opticals and continues to focus on those areas for future purchases, Mr. Bunch said.
Last year's acquisitions helped boost PPG's first-quarter results with combined sales growth of 20 percent for the optical and coatings segments, he said.
First-quarter net income was $194 million, or $1.17 per share, beating analysts' estimates that ranged from $1.08 to $1.10 per share.
Income included aftertax charges of $5 million, or 3 cents per share, that resulted from an increase in the company's obligations in an asbestos settlement case.
First-quarter sales jumped by 11 percent to $2.9 billion -- a record high for any quarter in PPG's history, the company said.
The results compare to first-quarter 2006 net income of $184 million, or $1.11 per share, on sales of $2.6 billion.
While sales of coatings and opticals had double-digit sales increases in the quarter, chemicals' sales dropped by 7 percent and glass sales fell by 3 percent.
Shares in PPG shot up to $75.89 in yesterday's trading before closing at $75.50, up $4.58 or 6.5 percent.
First Published April 19, 2007 7:35 pm
