PPG Posts 36 Pct Rise In 3rd-quarter Profit

PITTSBURG (AP) — PPG Industries Inc., which makes paint and coatings, on Thursday said its third-quarter profit rose 36 percent as cost-cutting and a modest improvement in demand compared with the first half of the year offset a big decline in sales.

Charles E. Bunch, PPG chairman and chief executive, said the company expects "only modest improvement in the overall economy" in the fourth quarter.

He expects growth in Asia will continue, and global automotive production "will remain at least at the third quarter levels, if not higher." Automakers are key customers for PPG.

Earnings rose to $159 million, or 96 cents per share, in the three months ended Sept. 30 from $117 million, or 70 cents per share, a year ago.

Results include a charge of $2 million, or 1 cent per share, to reflect the net increase in the current value of the company's obligation under its proposed asbestos settlement, which is pending court proceedings.

Excluding special items, adjusted income amounted to 97 cents per share. Analysts polled by Thomson Reuters expected earnings of 89 cents per share, on average. Analysts typically exclude one-time items.

Revenue dropped 24 percent to $3.23 billion from $4.23 billion a year ago. The company said some of the decline to the $229 million impact from the 2008 divestiture of a majority interest in its automotive glass and services businesses.

Analysts forecast lower revenue of $3.13 billion.

Shares PPG fell 17 cents to $61.36 in midday trading.