PPG Industries Inc. on Thursday reported lower first-quarter results due to currency fluctuations, and unveiled a restructuring program aimed at reducing its workforce and production capacity.
In a separate release, the paint manufacturer announced an increase to its quarterly dividend to 72 cents from 67 cents as well as a 2-for-1 stock split. PPG shares will begin trading on a split-adjusted basis on June 15.
The company, whose paint brands include Olympic and Glidden, expects to post restructuring charges of $135 million to $140 million for the second quarter related to integration and cost-savings efforts. The restructuring will affect headcount and production in certain businesses and regions based on demand, as well a various administrative functions.
The company is aiming for annual pretax savings of $100 million to $105 million by 2017, including partial-year savings of $15 million to $20 million this year. Further details weren't provided in the company's news release Thursday.
PPG last year completed its $2.3 billion deal for Mexico's Consorcio Comex SA, one of the largest paint manufacturers in North America. PPG also has made a string of smaller acquisitions, such as France-based Revocoat earlier this month. Revocoat supplies sealants, adhesives and other products for the automotive industry.
In the latest quarter, negative currency fluctuations cut PPG's sales by $260 million, compared with about $130 million during the fourth quarter of last year.
Overall, PPG reported a profit of $322 million, or $2.34 a share, down from $1.26 billion, or $8.97 a share, a year earlier. Excluding transaction-related expenses, pension-plan settlement costs and other items, per-share earnings from continuing operations rose to $2.37 from $1.98.
Revenue edged up 0.7% to $3.64 billion. Excluding currency impacts, net sales rose 8%. Acquisitions contributed most of the growth, while sales volume grew 1%.
Analysts polled by Thomson Reuters expected per-share profit of $2.34 and revenue of $3.79 billion.
