PPG Profits Rise 17 Percent In 2007

Date: 21 January 2008

PPG Industries Inc. said Thursday that profits last year rose 17 percent and it is poised to continue that success in 2008. "Our strong fourth-quarter results capped one of the best annual financial performances in the company's history," said CEO Charles E.

Bunch.

Pittsburgh-based PPG said fourth-quarter net income jumped 30 percent to $200 million, or $1.21 per share, on sales of $2.9 billion, compared to $157 million, or 94 cents per share, on sales of $2.5 billion, for the same period in 2006.

Full year net income rose to $834 million, or $5.03 per share, on sales of $11.2 billion, compared to $711 million, or $4.27 a share, on sales of $9.8 billion.

While PPG's tentative agreement to sell its automotive glass and services business fell through late in the year, Bunch said in a conference call with analysts that "our intent remains to divest these businesses in 2008."

That would affect its Creighton automotive glass plant in East Deer, where about 230 employees work.

Meanwhile, PPG last week countersued the prospective buyer, California-based Platinum Equity LLC, in New York State Supreme Court. PPG is seeking the $25 million deal break-up fee contained in the sales agreement, plus unspecified monetary damages. Platinum Equity, a private turnaround firm, had filed its own lawsuit last month to terminate its deal to buy the automotive glass and service business.

In its countersuit, PPG said Platinum Equity was scheming to get the automotive glass business at a "bargain basement price" and its lawsuit was an attempt to avoid the $25 million fee.