PPG Industries, a manufacturer of chemical products, reports a net loss of $111m in the first quarter, compared to a net loss of $100m for the same period 2008.
Net loss for Q1 2009 includes aftertax charges of $141m, or 86 cents per share for business restructuring and $2m, or 1 cent per share for proposed asbestos settlement. Adjusted net income decreased by 83% to $32m and sales 30% to $2.8 billion, compared to prior year’s first quarter.
As the activity steadied in several US end-use markets and performance of Asia Pacific region could match strong demand levels in February and March, it helped bridge the income gaps. Architectural Coatings segment in Europe could deliver flat year-over-year sales volumes in March, said the company.
The company anticipates seasonal demand growth in the second quarter but expects activity levels to remain low in comparison with recent years. The company also plans to realize further benefits from restructuring actions in the coming quarters.
Charles Bunch, PPG chairman and chief executive officer, said: “Our first quarter results reflect continued deterioration in the global economy, resulting in lower demand in many of the end-use markets we serve. The most significant drop-offs occurred in global automotive OEM and in many industrial markets.
We quickly implemented broad actions, including business restructurings and general spending controls which were successful in offsetting some of the earnings impact from the lower demand levels.”