<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - January 15, 1998
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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 File Number) (IRS Employer
jurisdiction Identification
incorporation) No.)
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 15, 1998, PPG Industries, Inc. made public the information
attached hereto as Exhibit 99, which Exhibit is incorporated by reference
herein.
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/ William H. Hernandez
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William H. Hernandez
Senior Vice President,
Finance
Date: January 16, 1998
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Exhibit 99
PITTSBURGH, Jan. 15, 1998--Fourth-quarter net income was $159 million, or
89 cents a share, on sales of $1.8 billion. Excluding gains and charges, net
income was $174 million, or 98 cents a share. In the 1996 quarter, net income
was $152 million, or 83 cents a share, on sales of $1.8 billion.
Full-year net income was $714 million, or $3.97 per share, on sales of $7.4
billion. Excluding the non-recurring items, net income was $729 million, or
$4.06 a share. Net income for all of 1996 was $744 million, or $3.96 per share,
on sales of $7.2 billion.
<PAGE>
Also today, PPG's board of directors declared a regular quarterly dividend
of 34 cents a share, payable March 12 to shareholders of record Feb. 17.
PPG recorded non-recurring pre-tax charges of $102 million for glass
segment restructuring actions that include closing a Georgia float glass plant
and disposal of equity interests in two Chinese float glass plants, said Raymond
W. LeBoeuf, board chairman and chief executive officer. Partially offset by a
pre-tax gain of about $59 million from divestiture of certain chemicals
businesses, principally surfactants, the charges reduced fourth-quarter net
income by about $15 million and per-share earnings by nine cents.
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The Perry, Ga., glass plant will close in late 1998. Plans for disposition
this year of PPG's equity interest in Dalian Float Glass Co. and Guangdong Float
Glass Co. are being completed, LeBoeuf said, noting that this decision was
centered on "significant excess capacity in China's flat glass industry."
Record fourth-quarter coatings segment sales and operating earnings
reflected, in part, worldwide volume gains compared with the year-earlier period
in all coatings businesses, particularly automotive original equipment and
industrial. North and South American and European acquisitions during 1997 also
contributed to the sales increase.
Record glass segment sales were achieved in the quarter despite continued
economic weakness in Europe. Excluding the one-time restructuring charges,
operating earnings increased slightly from a year ago.
PPG's chemicals segment recorded record fourth-quarter sales and--even
excluding effects of the one-time divestitures gain--a 21 percent improvement in
operating earnings. Although caustic soda pricing was slightly lower than
year-ago levels, chlor-alkali volumes increased for the 12th consecutive year
without significant capital investment. Specialty chemicals sales and operating
earnings remained strong because of volume increases, again led by Transitions
photochromic plastic eyewear lenses.
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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
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $1,846 $1,754 $7,379 $7,218
Cost of sales 1,085 1,072 4,397 4,340
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GROSS PROFIT 761 682 2,982 2,878
Other expenses:
Selling & other 348 327 1,318 1,243
Depreciation 87 88 348 340
Interest 29 24 105 96
Other (earnings) charges
-- net 47 (12) 36 (41)
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INCOME BEFORE INCOME
TAXES & MINORITY
INTEREST 250 255 1,175 1,240
Income taxes 83 97 435 471
Minority interest 8 6 26 25
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NET INCOME $ 159 $ 152 $ 714 $ 744
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Earnings Per Common
Share $ 0.89 $ 0.83 $ 3.97 $ 3.96
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Earnings Per Common Share
-- Assuming Dilution $ 0.89 $ 0.82 $ 3.94 $ 3.93
======================================================================
Avg. shares outstanding 177.9 183.9 179.8 187.8
======================================================================
</TABLE>
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CONDENSED BALANCE SHEET (unaudited)
<TABLE>
<CAPTION>
Dec. 31 Dec. 31
1997 1996
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(millions)
<S> <C> <C>
Current assets:
Cash & cash equivalents $ 129 $ 70
Receivables -- net 1,353 1,226
Inventories 863 797
Other 239 203
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Total current assets 2,584 2,296
Investments 219 254
Property less accumulated depreciation 2,855 2,913
Other assets 1,210 978
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TOTAL $6,868 $6,441
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Current liabilities:
Short-term debt & current portion of
long-term debt $ 444 $ 648
Accounts payable & accrued liabilities 1,210 1,106
Income taxes 8 15
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Total current liabilities 1,662 1,769
Long-term debt 1,257 834
Deferred income taxes 406 419
Accumulated provisions 952 860
Minority interest 82 76
Shareholders' equity 2,509 2,483
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TOTAL $6,868 $6,441
==========================================================================
</TABLE>
<PAGE>
BUSINESS SEGMENT INFORMATION (unaudited)
<TABLE>
<CAPTION>
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
1997 1996 1997 1996
---- ---- ---- ----
(millions)
<S> <C> <C> <C> <C>
Net sales
Coatings & Resins $ 800 $ 727 $3,059 $2,902
Glass 649 638 2,673 2,704
Chemicals 397 389 1,647 1,612
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TOTAL $1,846 $1,754 $7,379 $7,218
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Operating income
Coatings & Resins $ 149 $ 116 $ 568 $ 529
Glass (1) 26 84 330 431
Chemicals (2) 156 80 430 376
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TOTAL 331 280 1,328 1,336
Interest -- net (26) (20) (97) (85)
Other unallocated
corporate (expense
income -- net (3) (55) (5) (56) (11)
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INCOME BEFORE INCOME
TAXES & MINORITY
INTEREST $ 250 $ 255 $1,175 $1,240
======================================================================
</TABLE>
(1) Includes in each 1997 period pre-tax charge of $65 million related
principally to closure of the Perry, Ga., plant.
(2) Includes in each 1997 period pre-tax gain of $59 million related
principally to sale of certain chemicals businesses.
(3) Includes in each 1997 period pre-tax charge of $37 million related to
divestiture of equity interests in two Chinese float glass plants.
