PPG Industries Inc. reported first-quarter net income of $95 million, including after tax charges of $91 million, for a legal settlement in connection with an adverse ruling last month concerning Marvin Windows and Doors and warranty issues with a wood preservative the company makes. Sales were $2.5 billion.
Net income adjusted for the nonrecurring legal settlement was $186 million for the first quarter 2005, an increase of 56 percent over net income in the first quarter 2004 on a comparable basis.
In the first quarter 2004, PPG reported net income of $119 million, including $3 million to reflect the net increase in the value of the company's obligation under its asbestos agreement. First quarter 2004 sales were $2.3 billion.
"Our sales in the first quarter were an all-time record for any quarter, reflecting the continued growth in all segments of our balanced business portfolio," said Raymond W. LeBoeuf, chairman. The record for sales in a quarter had been $2.4 billion in the second quarter of 2004.
Glass sales increased $17 million, or 3 percent, as higher volumes in automotive replacement glass and flat glass businesses and the strengthening of foreign currencies more than offset lower selling prices. Operating earnings were up $16 million reflecting improved manufacturing efficiencies, increased volumes, higher equity earnings and lower overhead expenses. These increases exceeded the impact of higher energy and freight costs.
For the three months that ended March 31, the Pittsburgh, Pa., based company's glass segment had net sales of $554 million, up from $537 in the same period of 2004. Operating income for the glass segment was $41 million, up from $25 million in the January-March 2004 period.
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