8-K 1 d8k.htm FORM 8-K Form 8-K

UNITED STATES

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):

November 2, 2007

 


PPG INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

 


 

Pennsylvania   001-01687   25-0730780

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

 

One PPG Place, Pittsburgh, Pennsylvania   15272
(Address of principal executive offices)   (Zip code)

Registrant’s telephone number, including area code: (412) 434-3131

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 7.01. Regulation FD Disclosure

In the third quarter of 2007, PPG Industries, Inc. (“the Company”) announced that it had entered into separate agreements to sell both its automotive glass and automotive replacement glass and services businesses and its fine chemicals business. Based on the third quarter commitments to sell these businesses, the Company determined that the accounting requirements of Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” for classifying these businesses as assets held for sale and reporting their results of operations and cash flows as discontinued operations were met. The condensed consolidated financial statements filed in the Quarterly Report on Form 10-Q for the period ended September 30, 2007 presented these businesses as assets held for sale and reported their results as discontinued operations. The financial information below presents the sales and earnings of the Company and of its reportable segments for the year ended December 31, 2006 and for all quarters in 2006 after adjustment to reclassify the results of operations of the automotive glass and automotive replacement glass and services businesses and fine chemicals business to discontinued operations.


     2006 Financial Information  
    

3 Months Ended
March 31

2006

   

3 Months Ended
June 30

2006

    3 Months Ended
September 30
2006
    3 Months Ended
December 31
2006
    12 Months Ended
December 31
2006
 
     (millions, except per share data)  

Net sales

          

Performance and Applied Coatings

   $ 678     $ 774     $ 800     $ 836     $ 3,088  

Industrial Coatings

     767       811       811       847       3,236  

Optical and Specialty Materials

     219       241       230       214       904  

Commodity Chemicals

     401       372       371       339       1,483  

Glass

     286       308       292       264       1,150  
                                        

TOTAL

   $ 2,351     $ 2,506     $ 2,504     $ 2,500     $ 9,861  
                                        

Segment income

          

Performance and Applied Coatings

   $ 105     $ 144     $ 131     $ 134     $ 514  

Industrial Coatings

     91       104       83       71       349  

Optical and Specialty Materials

     60       60       53       44       217  

Commodity Chemicals

     87       86       77       35       285  

Glass

     22       32       25       20       99  
                                        

TOTAL

     365       426       369       304       1,464  

Restructuring

     (33 )     (2 )     —         —         (35 )

Legacy costs (Note A)

     (20 )     3       (203 )     (13 )     (233 )

Asbestos settlement - net

     (9 )     (8 )     (6 )     (5 )     (28 )

Interest - net

     (17 )     (18 )     (18 )     (16 )     (69 )

Unallocated stock based compensation (Note B)

     (8 )     (10 )     (10 )     (6 )     (34 )

Other unallocated corporate expense

     (28 )     (20 )     (31 )     (24 )     (103 )
                                        

INCOME BEFORE INCOME TAXES AND MINORITY INTEREST

     250       371       101       240       962  

Income tax expense

     59       94       14       74       241  

Minority interest

     19       16       17       16       68  
                                        

INCOME FROM CONTINUING OPERATIONS

     172       261       70       150       653  

Income from discontinued operations, net of tax

     12       19       20       7       58  
                                        

NET INCOME

   $ 184     $ 280     $ 90     $ 157     $ 711  
                                        

Earnings per common share

          

Income from continuing operations

   $ 1.04     $ 1.57     $ 0.42     $ 0.91     $ 3.94  

Income from discontinued operations

   $ 0.07     $ 0.12     $ 0.12     $ 0.04     $ 0.35  
                                        

NET INCOME

   $ 1.11     $ 1.69     $ 0.54     $ 0.95     $ 4.29  
                                        

Earnings per common share - assuming dilution

          

Income from continuing operations

   $ 1.04     $ 1.56     $ 0.42     $ 0.90     $ 3.92  

Income from discontinued operations

   $ 0.07     $ 0.12     $ 0.12     $ 0.04     $ 0.35  
                                        

NET INCOME

   $ 1.11     $ 1.68     $ 0.54     $ 0.94     $ 4.27  
                                        

Note A:

Legacy costs include current costs related to former operations of the Company, including certain environmental remediation, pension and other postretirement benefit costs and certain charges which are considered to be unusual or non-recurring. For the three months ended September 30, 2006, these costs included a pretax charge of $165 million for environmental remediation and a charge for the settlement of a legal matter of $23 million.

Note B:

Unallocated stock based compensation includes the cost of stock options, restricted stock units and contingent share grants which are not allocated to the operating segments.


SIGNATURE

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 hereunto duly authorized.

 

Dated: November 2, 2007   PPG INDUSTRIES, INC.
  (Registrant)
  By:  

/s/ William H. Hernandez

    William H. Hernandez
    Senior Vice President, Finance, Chief Financial Officer and Treasurer