<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) January 16, 1997
PPG INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
Pennsylvania 1-1687 25-0730780
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
One PPG Place, Pittsburgh, Pennsylvania 15272
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (412) 434-3131
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Not Applicable
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(Former Name or former address, if changed since last report.)
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Item 5. Other Events
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On January 16, 1997, PPG Industries, Inc. issued the press release attached
hereto as Exhibit 20, which is incorporated by reference herein.
Item 7. Financial Statements and Exhibits
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(12) Computation of Ratio of Earnings to Fixed Charges (Exhibit 12 is
filed hereby so as to become, by way of incorporation by reference,
an exhibit to Registration Statement No. 33-64081 on Form S-3.)
(20) PPG Industries, Inc. press release dated January 16, 1997.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PPG INDUSTRIES, INC.
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(Registrant)
/s/ W.H. Hernandez
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W. H. Hernandez
Senior Vice President, Finance
Date: February 18, 1997
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PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
<TABLE>
<CAPTION>
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
1996 1995 1996 1995
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $1,754.5 $1,722.4 $7,218.1 $7,057.7
Cost of sales 1,073.1 1,045.3 4,340.3 4,212.1
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GROSS PROFIT 681.4 677.1 2,877.8 2,845.6
Other expenses:
Selling & other 326.7 301.0 1,243.4 1,213.5
Depreciation 88.3 85.4 340.2 331.5
Interest 23.2 22.2 95.6 84.6
Other (earnings) charges
- net (11.8) 2.1 (41.0) (46.3)
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INCOME BEFORE INCOME
TAXES & MINORITY
INTEREST 255.0 266.4 1,239.6 1,262.3
Income taxes 96.9 101.3 471.0 479.7
Minority interest 6.0 3.9 24.6 15.0
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NET INCOME $ 152.1 $ 161.2 $ 744.0 $ 767.6
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EARNINGS PER SHARE $ 0.83 $ 0.83 $ 3.96 $ 3.80
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Avg. shares outstanding 183.9 195.9 187.8 202.0
===================================================================================
</TABLE>
CONDENSED BALANCE SHEET (unaudited)
<TABLE>
<CAPTION> Dec. 31 Dec. 31
1996 1995
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(millions)
<S> <C> <C>
Current assets:
Cash & cash equivalents $ 69.6 $ 105.6
Receivables - net 1,225.6 1,245.1
Inventories 796.5 737.5
Other 204.7 187.3
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Total current assets 2,296.4 2,275.5
Investments 254.4 223.8
Property less accumulated depreciation 2,913.5 2,834.8
Other assets 977.1 860.2
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TOTAL $6,441.4 $6,194.3
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Current liabilities:
Short-term debt & current portion of
long-term debt $ 648.3 $ 485.3
Accounts payable & accrued liabilities 1,105.5 1,103.5
Income taxes 15.1 40.6
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Total current liabilities 1,768.9 1,629.4
Long-term debt 833.9 735.5
Deferred income taxes 419.1 354.9
Accumulated provisions 860.7 837.1
Minority interest 76.2 68.2
Shareholders' equity 2,482.6 2,569.2
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TOTAL $6,441.4 $6,194.3
==================================================================================
</TABLE>
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BUSINESS SEGMENT INFORMATION (unaudited)
<TABLE>
<CAPTION>
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
1996 1995 1996 1995
------- -------- ---------- ---------
(millions)
<S> <C> <C> <C> <C>
Net sales
Coatings & Resins $ 727 $ 702 $2,902 $2,812
Glass 638 637 2,704 2,651
Chemicals 389 384 1,612 1,595
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TOTAL $1,754 $1,723 $7,218 $7,058
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Operating income
Coatings & Resins $ 116 $ 106 $ 529 $ 469
Glass 84 75 431 479
Chemicals 80 97 376 383
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TOTAL 280 278 1,336 1,331
Interest - net (20) (20) (85) (74)
Other unallocated
corporate (expense)
income - net (5) 8 (11) 5
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INCOME BEFORE INCOME
TAXES & MINORITY
INTEREST $ 255 $ 266 $1,240 $1,262
=================================================================
</TABLE>
<PAGE>
EXHIBIT 12
PPG INDUSTRIES, INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
Year Ended December 31
1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C>
Earnings:
Earnings before income taxes $537.8 $531.2 $839.8 $1,247.3 $1,215.0
Plus:
Fixed charges exclusive of capitalized interest 167.2 127.6 108.2 112.9 124.6
Amortization of capitalized interest 10.8 11.1 11.6 11.8 12.5
Adjustments for equity affiliates (1.6) (0.7) (2.4) (4.2) (2.5)
----- ----- ----- ------- -------
Total $714.2 $669.2 $957.2 $1,367.8 $1,349.6
===== ===== ===== ======= =======
Fixed Charges:
Interest expense including amortization of
debt discount/premium and debt expense $147.4 $107.5 $ 88.2 $ 90.6 $ 101.9
Rentals - portion representative of interest 19.8 20.1 20.0 22.3 22.7
----- ----- ----- ------- -------
Fixed charges exclusive of capitalized interest 167.2 127.6 108.2 112.9 124.6
Capitalized interest 7.4 6.0 5.3 8.6 11.7
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Total $174.6 $133.6 $113.5 $ 121.5 $ 136.3
===== ===== ===== ======= =======
Ratio of earnings to fixed charges 4.09 5.01 8.43 11.26 9.90
===== ===== ===== ======= =======
</TABLE>
<PAGE>
Exhibit 20
PPG HAS RECORD SALES;
DIRECTORS RAISE DIVIDEND
PITTSBURGH, Jan. 16 -- PPG Industries reported record sales for the fourth
quarter of 1996, while earnings per share equaled the 1995 record. Full-year
sales and earnings were also records, excluding the effect of a 1995 gain from
settlement of a glass technology dispute.
"All three business segments had record fourth-quarter sales, their second
consecutive quarterly high," said Jerry E. Dempsey, board chairman and chief
executive officer. "That performance, and the record-matching per-share
earnings, were achieved despite lower North American auto production, ongoing
commodity chemicals price weakening, a dramatic increase in natural gas costs,
and continued weakness in European economies."
Fourth-quarter net income was $152.1 million, or 83 cents a share, on sales
of $1.8 billion, compared with net income in the 1995 quarter of $161.2 million,
or 83 cents a share, on sales of $1.7 billion.
Full-year 1996 net income was $744.0 million, or $3.96 per share, on sales
of $7.2 billion. In 1995, net income was $767.6 million, or $3.80 per share --
including a $24.2 million after-tax gain, or 12 cents a share, from settlement
of the glass technology dispute with Pilkington PLC; sales were $7.1 billion.
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-2-
Also today, PPG's board of directors raised the quarterly dividend on the
company's shares to 33 cents from 32 cents a share, payable March 12 to
shareholders of record Feb. 18.
"We remain committed to a policy of rewarding our shareholders through
dividend increases, share repurchases and other appropriate actions," Dempsey
said. "PPG has paid dividends without interruption since 1899, and 1997 will be
the 26th consecutive year in which our shareholders will receive increased
dividend payments."
"Our North American businesses did well in the final quarter of the year,"
Dempsey said, "with manufacturing efficiencies contributing to overall earnings
performance. On the other hand, the climb in natural gas prices meant higher
fuel costs to generate electricity for commodity chemicals production and
operate glass and fiber glass melting furnaces.
"We remain cautiously optimistic that the decline in Europe's economies may
have bottomed late last year," he added.
PPG's coatings and resins segment achieved record sales and second-highest
operating earnings for a fourth quarter despite weakness in key European markets
and a decline in North American auto production. Automotive refinishes and
industrial coatings had a strong quarter. Raw materials costs improved from a
year earlier, and manufacturing efficiencies also had a favorable effect on
earnings.
(more)
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-3-
Glass segment sales were a record for a fourth quarter despite the drag of
weak European markets. Volumes improved for most North American products as well
as European flat glass products. Flat glass pricing, although down from a year
ago, has been relatively stable since mid-1996. Operating earnings benefited in
part from ongoing manufacturing efficiencies and slightly lower overhead.
While chemicals sales were also a record for the quarter, operating
earnings were affected by continued declines in commodity selling prices and
sharply increased energy costs that were offset only slightly by lower overhead
costs. PPG's expanding specialty chemicals businesses posted strong volume
gains, again led by the Transitions Optical photochromic plastic eyewear lens
business. For the 11th consecutive year, commodity chemicals operations
increased output from basically the same production facilities.
-21390/197-
Internet: http://www.ppg.com
