PPG to Lay Off 2,000April 9th, 2012 | Category: Industry News
PPG Industries of Pittsburgh will lay off 2,000 employees as a result of restructuring, according to information from the company’s first-quarter financial report. The layoff will take place primarily in PPG’s global architectural coatings businesses and in other PPG businesses and administrative functions in Europe.
“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,” says Charles E. Bunch, PPG chairman and CEO.
The company also will report nonrecurring charges in the first quarter 2012 related to business restructuring, environmental remediation and acquisition-related expenses. As a result, the company expects first quarter 2012 earnings per diluted share in the range of 2 to 7 cents. Adjusted earnings per diluted share for the quarter, excluding the nonrecurring charges, are expected to be between $1.75 and $1.80. This compares with reported earnings per diluted share of $1.40 in the first quarter 2011. There were no nonrecurring charges in the first quarter 2011.
“Our expected first quarter operating results provide further evidence of the continuing strength and consistent earnings growth potential of our business portfolio,” Bunch says. “During the quarter, we saw the overall pace of business activity improve compared with the fourth quarter 2011. This trend was aided by modest customer restocking and normal seasonal factors, and lower natural gas costs in the United States are also contributing to our results.”