PPG restructuring to affect 2,000 employees, primarily in European architectural coatings businesses
PPG Industries announced, April 5, that restructuring efforts--primarily in its global architectural coatings businesses and other PPG businesses and administrative functions in Europe--will affect about 2,000 employees. “These cost-reduction actions, while always difficult decisions, are needed to ensure that our cost structure is appropriate for business conditions and that all of our operations remain competitive globally,” said Charles Bunch, PPG chairman and CEO, in a release.
“In general, business conditions during [first quarter 2012] were strong in North America and solid in Asia and other emerging regions,” Bunch said. "... Our architectural coatings business in the United States benefited from early signs of a construction recovery and mild winter weather, but overall industry demand remained well below historical levels. Lastly, demand in Europe was muted, and we expect economic recovery to occur slowly in that region.”
When complete, PPG expects that the restructuring should result in annualized, pretax savings of about $140 million, according to the release. Charges related to the restructuring ($164 million) will be included in the first-quarter 2012 results, to be released April 19.
First quarter 2012 results also will include a charge for estimated environmental remediation costs of about $160 million pretax, according to PPG officials. The charge primarily relates to continued environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.
PPG will issue its final first quarter 2012 earnings news release April 19, with additional, in-depth commentary and financial data.