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PPG to Cut Jobs and Close Plants after 4Q Earnings Fall 34 Percent

PPG Industries Inc. announced it would cut jobs and close plants in 2002, as fourth-quarter earnings fell 34 percent due to weakness in auto and industrial markets.

The company said it would take $60 million to $90 million in pretax charges in the first quarter for the restructuring moves. PPG did not say how many jobs would be eliminated or which plants closed because the company is still in the planning stages and not prepared to provide details, said company spokesman Jeff Worden.

Pittsburgh-based PPG, the world's largest maker of car and airplane paints, reported net income in the fourth-quarter of $83 million, or 49 cents a share, down from $126 million, or 75 cents a share, in the year-earlier period.

Analysts had expected the company to earn between 30 cents a share and 53 cents a share in the fourth-quarter, with a consensus of 43 cents, according to tracking firm Thomson Financial/First Call.

Fourth-quarter sales fell over 4 percent to $1.91 billion from $2.1 billion in last year's fourth quarter.

In 2001, PPG company shares rose 11.7 percent, outperforming the Standard & Poor's 500 Index, which fell 13 percent.

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