PPG Chairman says 3rd quarter EPS likely to be 50 to 60 Cents

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 upon which customers depend. He added that cost-reduction initiatives and previously announced restructuring actions, which are more than 60 percent complete, will cut costs by more than $70 million before the end of the year.
"As a result of incredibly tight capital spending, reductions in working capital and early and swift actions, we have actually increased our free cash flow from operations at a time when many of our peers are generating significantly less," LeBoeuf said. "And our third quarter earnings - although down from a year ago - should continue to show better comparisons with last year than many of our competitors."
In conclusion, LeBoeuf thanked PPG employees for carrying out the company's strategies in a difficult, and still weakening, global business environment.
"We should emerge from this current industrial downturn, as we have from past recessions, with sharply lower costs, a stronger balance sheet and an improved strategic flexibility, all of which will provide a strong foundation for future growth," LeBoeuf said.
Pittsburgh-based PPG is a global supplier of coatings, glass, fiber glass and chemicals, with 120 manufacturing locations in more than 20 countries. Sales in 2000 were US$8.6 billion.