This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PPG Industries Reaches Asbestos Settlement

PPG Industries (PPG - Get Report) said on Tuesday that it has reached a settlement agreement with insurers and asbestos claimants for all current and future personal injury claims against the company totaling around $2.7 billion over 21 years.

The agreement calls for the company to establish a trust for claimants funded with contributions from PPG. The company plans to record a $500 million after tax charge to reflect the current value of cash contributions over a 21-year period, as well as 1.4 million shares of PPG stock. PPG's insurers will also make substantial contributions to the settlement, bringing the total to roughly $2.7 billion.

Most of the personal injury claims arose from PPG's investment in the now-bankrupt Pittsburgh Corning, which manufactured asbestos-containing high-temperature pipe insulation from 1962 to 1972. The company filed for bankruptcy in 2000, and PPG Industries wrote down its investment in the company.

In a press release PPG said, "Although we continue to believe we're not responsible for Pittsburgh Corning's products, we feel this agreement will benefit our company and shareholders in view of the number of claims and runaway verdicts against other companies."

Lehman upgraded PPG Industries on the news, saying that yesterday's settlement "provides an additional catalyst to an attractive fundamental story." The brokerage house moved the company to strong buy from buy due to its inexpensive valuation.

Shares of PPG closed at $57.10 Tuesday before the news.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PPG $110.39 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs