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PPG · PPG Industries

31 filings

10-K

PPG 10-K Annual Reports

PPG Industries - 31 annual reports

Filing record · 2016–202610-K1210-Q338-K141

2025
PPG Industries Annual Report, Year Ended Dec 31, 2025
PPG Industries, Inc. reported net sales of approximately $15.9 billion for 2025, flat compared to 2024, with higher selling prices, sales volume growth and favorable foreign currency translation offset by the impact of divestitures. Income before income taxes rose to $2,045 million from $1,852 million, primarily due to lower business restructuring and impairment charges, higher selling prices, improved manufacturing productivity and restructuring savings, partially offset by unfavorable sales mix and cost inflation. Diluted earnings per share from continuing operations were $6.92, compared with $5.72 in 2024, while adjusted diluted EPS from continuing operations was $7.58, down from $7.87. Management reported organic sales growth of 2% for the year, and cash from operating activities from continuing operations was $1,936 million. For 2026, PPG anticipates organic sales growth in the range of flat to a positive low single-digit percentage, driven by aerospace coatings, architectural coatings in Mexico and share gains in Industrial Coatings, while demand in Europe and global industrial end-use markets is expected to remain challenged. The company expects its 2026 effective tax rate from continuing operations to be 24% to 25%, and capital expenditures of approximately $650 million to $700 million. Total Indebtedness to Total Capitalization under the Credit Agreement was 47% at year-end, and the company ended 2025 with approximately $2.2 billion in cash and short-term investments. A material open matter is the Di Gregório litigation in Brazil, for which Westlake has informed PPG that the award against PPG would be approximately $350 million after a revised interest calculation, down from an earlier figure of over $700 million. PPG is pursuing its Delaware Chancery claims against Westlake, which the company believes carry remote risk of loss, with a trial-court decision expected in 2026. Management believes that, in the aggregate, pending lawsuits and environmental contingencies will not have a material effect on the consolidated financial position or liquidity.
Feb 19, 2026
2024
PPG Industries Annual Report, Year Ended Dec 31, 2024
PPG Industries, Inc. reported net sales of $15.8 billion for 2024, a decrease of 2% from 2023, as lower sales volumes and unfavorable foreign currency translation and divestitures reduced sales, partly offset by record aerospace coatings sales. Income before income taxes rose $162 million to $1,852 million, driven primarily by lower raw material costs, lower performance-based compensation and restructuring savings, partially offset by overhead inflation and lower sales volumes. Earnings per diluted share from continuing operations were $5.72 versus $5.16 in 2023, and adjusted earnings per diluted share were $7.87, up 6% from $7.42. Cash from operating activities from continuing operations declined to $1,391 million from $2,294 million, primarily due to unfavorable working capital changes. PPG completed the sale of its U.S. and Canada architectural coatings business and its silicas products business in December 2024 and November 2024, respectively. The U.S. and Canada architectural coatings business is presented as discontinued operations, with a loss on sale of $285 million, resulting in a net loss from discontinued operations of $228 million and a reported net income attributable to PPG of $1,116 million. In October 2024, PPG approved a cost reduction program with anticipated annualized pre-tax savings of approximately $175 million, and recorded a $239 million pretax restructuring charge in the fourth quarter. A material item for investors is the Di Gregório litigation in Brazil. Westlake has informed PPG that a Brazilian court entered an award against PPG, which PPG believes Westlake is obligated to satisfy under the 2012-2013 separation agreements; PPG has filed a lawsuit against Westlake with a trial date of May 6, 2025, and characterizes its risk of loss as remote. Management expects a low single-digit percentage organic sales growth in 2025, with a 2025 effective tax rate expected in the range of 23% to 25%.
Feb 20, 2025
2023
PPG Industries Annual Report, Year Ended Dec 31, 2023
PPG Industries, Inc. manufactures and distributes paints, coatings and specialty materials through two reportable segments, Performance Coatings and Industrial Coatings. For 2023, net sales were $18.2 billion, up 3% from 2022, driven by higher selling prices, with lower sales volumes partially offsetting. Income before income taxes rose to $1,748 million from $1,381 million, and earnings per diluted share from continuing operations were $5.35, compared with $4.33 in 2022. Adjusted earnings per diluted share were $7.67, up from $6.05. The company reported a $190 million non-cash pension settlement charge and a $158 million goodwill impairment for its traffic solutions reporting unit, which was partly driven by challenges in Argentina and the divestiture of its European and Australian traffic solutions businesses. Cash from operating activities was $2,411 million, compared with $963 million in 2022, and the company ended 2023 with about $1.6 billion in cash and short-term investments. Total debt was $6,050 million at year-end, and the company used $598 million for dividends and $86 million for share repurchases during the year. Management expects a 2024 effective tax rate of 23% to 24%, capital expenditures of about $600 million, and continued softness in architectural and industrial demand, with growth expected in aerospace and automotive OEM coatings. The company also announced a strategic alternatives review for its silicas products business. The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the financial statements and on internal control over financial reporting as of December 31, 2023. Environmental reserves totaled $227 million, with reasonably possible unreserved losses estimated at $100 million to $200 million. Asbestos reserves were $48 million.
Feb 15, 2024
2022
PPG Industries Annual Report, Year Ended Dec 31, 2022
PPG Industries, Inc. manufactures and distributes paints, coatings and specialty materials through two reportable segments, Performance Coatings and Industrial Coatings. In 2022 net sales rose 5.1% to $17,652 million, driven by higher selling prices (+11%) and acquisition-related sales (+3%), partly offset by unfavorable foreign currency translation (-5%) and lower sales volumes (-3%). Income before income taxes fell to $1,381 million from $1,815 million, primarily due to raw material and other cost inflation, lower sales volumes, unfavorable currency translation, higher manufacturing costs from supply and labor disruptions, and impairment and other related charges of $245 million, largely tied to the wind down of Russian operations. Diluted earnings per share from continuing operations were $4.33, versus $5.93 in 2021; adjusted diluted EPS from continuing operations was $6.05, versus $6.77. Cash from operating activities declined to $963 million from $1,562 million, reflecting a larger working capital build. The company paid $570 million in dividends, deployed $114 million for acquisitions and $518 million for capital expenditures, and repurchased $190 million of stock. Cash and short-term investments totaled $1,154 million at year-end, and total debt was $6,806 million. Management's 2023 outlook calls for softening global economic activity, lower first-quarter sales volumes in the mid-single-digit percentage range, a 2023 effective tax rate of 22% to 24%, and restructuring savings of at least $60 million. The filing also notes ongoing asbestos and environmental exposures, with $217 million reserved for environmental remediation and $51 million reserved for asbestos-related claims at year-end. Management believes these matters will not have a material effect on the company's financial position or liquidity, though they may be material to results in any particular period. Leadership transitions take effect January 2023, with Timothy M. Knavish becoming President and Chief Executive Officer and Michael H. McGarry becoming Executive Chairman.
Feb 16, 2023
2021
PPG Industries Annual Report, Year Ended Dec 31, 2021
PPG Industries, Inc. reported record 2021 net sales of $16,802 million, up from $13,834 million in 2020, with net sales up 21.5% year over year. Growth was driven by acquisition-related sales (+9%), higher sales volumes (+5%), higher selling prices (+5%) and favorable foreign currency translation (+2%). Cost of sales rose to $10,286 million, or 61.2% of net sales versus 56.2% in 2020, as raw material and logistics cost inflation and supply constraints weighed on margins. Income before income taxes was $1,815 million versus $1,362 million, and diluted earnings per share from continuing operations were $5.93 versus $4.44. Adjusted diluted EPS from continuing operations, which excludes certain items, was $6.77 versus $6.12. The company completed several acquisitions in 2021, including Tikkurila, Wörwag, Cetelon and VersaFlex, with $2.1 billion deployed for acquisitions during the year. Cash from operating activities from continuing operations declined 26.6% to $1,562 million, primarily due to higher working capital. Management expects raw material costs to be between 25% and 30% higher year over year in the first quarter of 2022, and expects sales volumes in the first quarter to be lower by a mid-single-digit percentage compared with the prior year. Total indebtedness to total capitalization was 48% at December 31, 2021, against a covenant maximum of 60%. The filing also discloses a $133 million pretax income benefit from an asbestos-related claims reserve adjustment, which reduced reserves to $54 million, and $282 million of reserves for environmental remediation. Management believes the outcome of pending litigation and environmental contingencies will not have a material effect on the company's financial position or liquidity, though these outcomes could be material to results in a particular period.
Feb 17, 2022
2020
PPG Industries Annual Report, Year Ended Dec 31, 2020
PPG Industries, Inc. manufactures and distributes paints, coatings and specialty materials through two reportable segments, Performance Coatings and Industrial Coatings. For 2020, net sales fell to $13,834 million from $15,146 million in 2019, driven mainly by lower sales volumes tied to the COVID-19 pandemic. Income before income taxes was $1,362 million versus $1,661 million, and earnings per diluted share from continuing operations were $4.44 versus $5.22. Adjusted earnings per diluted share from continuing operations, which excludes restructuring, impairment and other items, were $5.70 versus $6.22. The company's cash from operating activities from continuing operations rose to $2,129 million from $2,084 million. PPG ended 2020 with $1.92 billion in cash and short-term investments, but spent about $1.17 billion on business acquisitions, including Ennis-Flint, Alpha Coating Technologies and Industria Chimica Reggiana. Subsequent to year-end, the company announced agreements to acquire Wörwag, VersaFlex and Tikkurila. Total debt was $5.35 billion at year-end, and the company paid $496 million in dividends. No shares were repurchased in 2020, and about $1.5 billion remained under the share repurchase authorization. Management expects 2021 regional growth to be higher than 2020 in all regions, with a 2021 effective tax rate of 22% to 24%. The company also highlighted a $300 million environmental remediation reserve, primarily for the New Jersey Chrome sites, and an SEC investigation into accounting matters that remained open at the filing date.
Feb 18, 2021
2019
PPG Industries Annual Report, Year Ended Dec 31, 2019
PPG Industries, Inc. manufactures and distributes paints, coatings and specialty materials through two reportable segments, Performance Coatings and Industrial Coatings. For 2019, net sales were $15.146 billion, down from $15.374 billion in 2018, with the decline attributed mainly to lower sales volumes and unfavorable foreign currency translation, partly offset by higher selling prices and acquisition-related sales. Income from continuing operations attributable to PPG was $1.243 billion, and diluted earnings per share from continuing operations were $5.22, compared with $5.40 in 2018. Adjusted diluted earnings per share from continuing operations, a non-GAAP measure reconciled in the filing, were $6.22, up from $5.92. Results were affected by $176 million of net business restructuring charges and $98 million of other charges, mostly environmental remediation. Cash from operating activities of continuing operations rose to $2.084 billion from $1.487 billion, and the company ended 2019 with $1.273 billion in cash and short-term investments. Cash used for acquisitions was $643 million, and the company repurchased $325 million of stock and paid $468 million in dividends. Total debt, including finance leases, was 49% of total debt and equity at year-end, down from 52%. The company reported approximately $1.5 billion remaining under its share repurchase authorization. Looking ahead, management expects modest global market growth in 2020 that is uneven by region, with the softest conditions expected in EMEA. It guided to a 2020 effective tax rate of 22% to 24%, expects aggregate restructuring savings of at least $75 million, and is monitoring the coronavirus outbreak in China. The filing also discloses a 2018 restatement of prior financial statements, a settled SEC matter with no financial penalty, and pending litigation including a $25 million securities class action settlement that insurers have agreed to cover.
Feb 20, 2020
2018
PPG Industries Annual Report, Year Ended Dec 31, 2018
PPG Industries, Inc. manufactures and distributes paints, coatings and specialty materials through two reportable segments: Performance Coatings and Industrial Coatings. In 2018, net sales rose to $15,374 million from $14,748 million in 2017, and income from continuing operations was $1,340 million, with earnings per diluted share from continuing operations of $5.40 versus $5.31 in 2017. Adjusted earnings per diluted share, a non-GAAP measure reconciled in the filing, were $5.92 versus $5.86. Segment income fell in both segments: Performance Coatings was $1,300 million and Industrial Coatings was $818 million, with the decline attributed mainly to raw material and logistics cost inflation. Management cited a mid-single-digit percentage rise in raw material costs in 2018 and expects coatings raw material prices to increase a low-single-digit percentage in the first half of 2019. The company reported cash from operating activities of $1,487 million from continuing operations, and it repurchased 15.9 million shares for $1,721 million. Dividends paid totaled $453 million. Total debt rose after the issuance of $992 million in notes in February 2018, and the ratio of total debt to total debt and equity was 52% at December 31, 2018, up from 43% in 2017. The company guided to a 2019 effective tax rate of 23% to 25% and expects unfavorable foreign currency translation to reduce 2019 sales by $400 million to $500 million. The filing also discloses material legal and regulatory matters. PPG has self-reported accounting matters to the SEC and is cooperating with an SEC investigation and a U.S. Attorney's Office investigation relating to restated 2017 and 2016 financial statements, and a putative securities class action is pending. The company carries $291 million of environmental remediation reserves, mainly for New Jersey Chrome, and it reports approximately 460 open asbestos-related claims. Management believes these matters will not have a material effect on its consolidated financial position or liquidity, though outcomes could be material to results in a given period.
Feb 21, 2019
2017-A
PPG Industries Annual Report (Amendment), Year Ended Dec 31, 2017
PPG Industries, Inc. filed this Form 10-K/A on June 28, 2018 to restate its 2017 and 2016 financial statements after an internal investigation found misstatements tied to an improper override of controls in the financial close process by a former Vice President and Controller. The restatement reduced 2017 income from continuing operations by $2 million (to $1,369 million, or $5.31 per diluted share) and increased income from discontinued operations by $5 million, leaving net income attributable to PPG at $1,594 million. Management concluded that internal control over financial reporting was not effective as of December 31, 2017 because of a material weakness in the financial close process, and the company is pursuing remediation steps. The filing also discloses an SEC investigation that the company self-reported, and a putative securities class action filed May 20, 2018 in the U.S. District Court for the Central District of California. On an operating basis, 2017 net sales rose 3% to $14.7 billion, driven mainly by higher sales volumes and acquisition-related sales, while cost of sales increased 7% to $8.2 billion. Income before income taxes was $2,005 million, up $1.2 billion from 2016, which benefited from the absence of a $968 million pension settlement charge and a $191 million business restructuring charge in the prior year. The 2017 effective tax rate was 30.7%, including a $134 million net charge from the U.S. Tax Cuts and Jobs Act; the adjusted effective tax rate was 24.3%. Adjusted earnings per diluted share from continuing operations were $5.86. Cash from continuing operating activities was $1,551 million, cash and short-term investments were about $1.5 billion at year-end, and the company returned cash to shareholders through $434 million in dividends and $813 million in share repurchases. The company also completed the sale of its North American fiber glass business in September 2017, which closed the exit from all glass operations and was reported as discontinued operations.
Jun 28, 2018
2017
PPG Industries Annual Report, Year Ended Dec 31, 2017
PPG Industries, Inc. reported 2017 net sales of $14.75 billion, up 3% from $14.27 billion in 2016, driven primarily by higher sales volumes and acquisition-related sales, with cost of sales (exclusive of depreciation and amortization) rising 7% to $8.2 billion on raw material cost inflation. Income from continuing operations was $1,371 million, or $5.32 per diluted share, versus $2.05 in 2016, which had absorbed a $968 million pre-tax pension settlement charge. Adjusted earnings per diluted share from continuing operations were $5.87, compared with $5.67 in 2016. The 2017 effective tax rate was 30.7%, including a $134 million net charge from the U.S. Tax Cuts and Jobs Act, which the company says is provisional and may change as further regulations are issued. The company completed the sale of its North American fiber glass business in September 2017 for approximately $540 million in pre-tax cash proceeds, exiting all glass operations and presenting that segment as discontinued operations. Cash from operating activities from continuing operations rose to $1,556 million from $1,218 million, and PPG ended the year with $1,491 million in cash and short-term investments. The company repurchased $813 million of stock, paid $434 million in dividends, and deployed $325 million for business acquisitions, including The Crown Group. PPG states it expects to deploy at least $3.5 billion for acquisitions and share repurchases across 2017 and 2018 combined, with $1.1 billion deployed in 2017, and it authorized a new $2.5 billion repurchase program in December 2017, leaving approximately $3.6 billion remaining under its authorizations. Management guided to a 2018 effective tax rate of 23.0% to 24.0%, and expects coatings raw material prices to rise a mid-single-digit percentage in the first half of 2018. The company also disclosed reserves of $258 million for environmental remediation and reasonably possible additional unreserved losses of $100 million to $200 million, and it stated that the outcome of its lawsuits and claims, including asbestos-related claims, is not expected to have a material effect on its consolidated financial position or liquidity.
Feb 15, 2018
2016
PPG Industries Annual Report, Year Ended Dec 31, 2016
PPG Industries, Inc. reported 2016 net sales of $14.75 billion, roughly flat versus $14.77 billion in 2015, as unfavorable foreign currency translation of about $400 million (3%) offset acquisition-related sales (+2%) and higher volumes (+1%). Net income attributable to PPG was $877 million, or $3.28 per diluted share, but this was depressed by a $968 million pre-tax pension settlement charge tied to transferring about $1.8 billion of U.S. and Canadian pension obligations to insurers, and a $197 million business restructuring charge. Income from continuing operations was $564 million, or $2.11 per diluted share, versus $4.89 in 2015. The company reports adjusted diluted EPS from continuing operations of $5.82, up 7.2% from $5.43, excluding certain charges. The company completed the sale of its flat glass business to Vitro for about $740 million in cash on October 1, 2016, and also divested its European fiber glass business and several joint venture interests, bringing total divestiture cash proceeds to about $1.1 billion. In the same year, PPG fully funded its obligation to the Pittsburgh Corning asbestos settlement trust, with total cash obligations of $813 million pre-tax, and returned capital through $1.05 billion of share repurchases and $414 million of dividends. Cash and short-term investments ended the year at about $1.9 billion. Management announced a new 2017 and 2018 combined cash deployment target of $2.5 billion to $3.5 billion for acquisitions and share repurchases, and guided to 2017 foreign currency headwinds of $375 million to $425 million on sales and $70 million to $90 million on pre-tax income. After the divestitures, PPG reports three segments: Performance Coatings (2016 net sales $8.58 billion, segment income $1.31 billion), Industrial Coatings ($5.69 billion, $1.04 billion) and Glass ($481 million, $53 million). Long-term debt was $3.79 billion at year-end, and the debt-to-total-capitalization ratio was 47%. Management expects 2017 operating savings from the new restructuring program of about $40 million to $50 million, with about $125 million of annual savings once fully implemented.
Feb 16, 2017
2015
PPG Industries Annual Report, Year Ended Dec 31, 2015
PPG Industries, Inc. reported 2015 net sales of $15.33 billion, essentially flat versus $15.36 billion in 2014. Management attributed the flat result to unfavorable foreign currency translation (7%) offset by sales from acquired businesses (6%) and higher volumes (1%). Income before income taxes rose to $1.88 billion from $1.42 billion, and net income from continuing operations was $1.41 billion, or $5.14 per diluted share, versus $4.05 in 2014. Adjusted earnings per diluted share, a non-GAAP measure reconciled in the filing, were $5.69 compared with $4.88. The company cites a $140 million pre-tax business restructuring charge in 2015, with expected full-year pre-tax savings of about $105 million by 2017. Segment results were mixed. Performance Coatings net sales rose 0.8% to $8.77 billion and segment income rose 8.0% to $1.30 billion, driven largely by the Comex acquisition. Industrial Coatings net sales fell 1.4% to $5.48 billion, while segment income increased 3.6% to $985 million. Glass segment income improved 69.1% to $137 million on favorable product mix and lower manufacturing costs, though the Fresno flat glass facility faced a force majeure and is undergoing major repairs in 2016. Cash from continuing operations was $1.84 billion, and the company returned value through $751 million of share repurchases and $383 million of dividends. Investors should also note ongoing liabilities. The proposed Pittsburgh Corning asbestos settlement carries a recorded obligation of $1.05 billion, with PPG expecting funding in the first half of 2016. Environmental reserves total $233 million, and the filing discloses reasonably possible unreserved environmental losses of $75 million to $200 million. For 2016, management guided to currency translation headwinds of $550 million to $600 million on sales and $70 million to $80 million on pre-tax income, and expects an adjusted effective tax rate of 24.5% to 25.5%.
Feb 18, 2016
2014
PPG Industries Annual Report, Year Ended Dec 31, 2014
PPG Industries, Inc. reported 2014 net sales of $15.36 billion, up from $14.27 billion in 2013, with growth driven by acquired businesses (4%), higher sales volumes (3%) and higher selling prices (1%). Net income attributable to PPG was $2.10 billion, or $15.03 diluted earnings per share, but this figure includes $6.93 per share from discontinued operations, mainly the sale of the Transitions Optical joint venture and sunlens business to Essilor in March 2014. Diluted earnings per share from continuing operations were $8.10, compared with $6.55 in 2013. Income before income taxes was $1.42 billion, and the company cites adjusted income before income taxes of $1.82 billion after excluding certain nonrecurring charges, including a $317 million debt refinancing charge and $138 million of environmental remediation charges. The company's largest acquisition was Consorcio Comex, S.A. de C.V., a Mexican architectural coatings business finalized in November 2014 for $1.98 billion net of cash acquired. Segment income rose in all three reportable segments: Performance Coatings to $1.21 billion, Industrial Coatings to $951 million and Glass to $81 million. Management expects the 2015 currency translation impact to reduce sales by $650 million to $750 million and earnings by about $65 million to $75 million, and it expects an ongoing effective tax rate of 24.0% to 25.0%. Risk factors center on raw material costs (coatings raw materials generally comprise 70% to 80% of cost of goods sold), foreign currency, and litigation. The company has ongoing asbestos exposure tied to Pittsburgh Corning Corporation, with a proposed settlement that remains subject to court approval, and environmental reserves of $317 million, largely for the former Jersey City chromium plant. Management believes these matters will not have a material adverse effect on consolidated financial position or liquidity, though outcomes could be material to results in a particular period.
Feb 19, 2015
2013
PPG Industries Annual Report, Year Ended Dec 31, 2013
PPG Industries, Inc. reported 2013 net sales of $15.108 billion, up $1.596 billion (12%) from $13.512 billion in 2012, driven mainly by acquisitions. Acquired businesses added roughly 10% to net sales, led by the North American architectural coatings business of Akzo Nobel, acquired April 1, 2013. Income from continuing operations attributable to PPG was $1.034 billion, or $7.13 per diluted share, versus $726 million ($4.69) in 2012. Net income attributable to PPG was $3.231 billion ($22.27 per diluted share), inflated by a $2.2 billion pretax gain from the January 28, 2013 separation and merger of the commodity chemicals business with Georgia Gulf. Segment income rose in most segments, though Glass declined. Total segment income was $2.190 billion. The filing also describes the pending sale of PPG's 51% interest in Transitions Optical and its optical sunlens business to Essilor International, at an enterprise value of about $3.4 billion, with cash at closing of $1.73 billion pretax (about $1.5 billion after tax). The transaction is expected to close in the first half of 2014. PPG stated its intention to deploy between $3.0 billion and $4.0 billion of incremental cash over an 18 to 24 month period beginning January 2014, focused on earnings accretion initiatives including return of cash to shareholders. Liquidity remained solid, with cash from continuing operations of $1.809 billion in 2013 and a debt-to-capitalization ratio of 41% at year-end, down from 50%. Key risks include a $310 million environmental remediation reserve, with reasonably possible unreserved losses of $100 million to $200 million, mostly related to the former Jersey City chromium plant (New Jersey Chrome). The asbestos settlement, under which PPG would pay about $825 million in aggregate cash plus 1,388,889 PPG shares, remains subject to court appeals. Management believes that, in the aggregate, pending litigation will not have a material effect on consolidated financial position or liquidity.
Feb 20, 2014
2012
PPG Industries Annual Report, Year Ended Dec 31, 2012
PPG Industries, Inc. reported 2012 net sales of $15.2 billion, up from $14.885 billion in 2011, with higher selling prices and acquisitions offsetting a 3% negative currency impact. Net income attributable to PPG was $941 million, or $6.06 per diluted share, compared with $1.095 billion, or $6.87 per diluted share, in 2011. Results included a $208 million business restructuring charge and a $159 million environmental remediation charge; excluding these and other separation and acquisition costs, adjusted diluted EPS was $7.94. Cash from operations reached $1.787 billion, and the company entered 2013 with about $2.4 billion in cash and short-term investments. The most significant structural change was the January 28, 2013 separation of the commodity chemicals business and its merger with Georgia Gulf, creating Axiall Corporation. PPG received $900 million in cash and 35.2 million Axiall shares and holds no ownership interest in Axiall. Going forward, PPG reports six segments: Performance Coatings, Industrial Coatings, Architectural Coatings-EMEA, Optical and Specialty Materials, and Glass, with the commodity chemicals results moving to discontinued operations in 2013. PPG also agreed in December 2012 to acquire the North American architectural coatings business of Akzo Nobel N.V. for $1.05 billion, expected to close in the first half of 2013. Key investor watch items include environmental reserves of $332 million, reasonably possible unreserved environmental losses of $100 million to $275 million, and the proposed Pittsburgh Corning asbestos settlement, which is still subject to court approval. Management states that these contingencies are not expected to have a material effect on financial position or liquidity, though they may be material to results in a particular period.
Feb 21, 2013
2011
PPG Industries Annual Report, Year Ended Dec 31, 2011
PPG Industries, Inc. reported 2011 net sales of $14,885 million, up 11 percent from $13,423 million in 2010, with higher volumes contributing just over 2 percent and higher selling prices adding 5 percent. Net income attributable to PPG rose to $1,095 million, or $6.87 per share assuming dilution, compared with $769 million, or $4.63 per share, in 2010. The 2010 results included an $85 million, or $0.51 per share, charge from a change in U.S. tax law. Segment income increased across all six reportable segments, led by Commodity Chemicals ($370 million, up $181 million) and Industrial Coatings ($438 million, up from $378 million). The effective tax rate was about 24 percent in 2011 versus about 32 percent in 2010. Raw material inflation was the central pressure point. Coatings raw material costs rose about 10 to 12 percent in 2011, an incremental cost of approximately $440 million, and management said higher selling prices did not fully offset this in the coatings segments. The company plans additional pricing in 2012 to recover margin lost in 2011. Cash from operating activities was $1,436 million, and the company entered 2012 with about $1.5 billion in cash and short-term investments, with a stated target to end 2012 below $1 billion. It repurchased 10.2 million shares in 2011 for $858 million and acquired Dyrup and Colpisa in January 2012 for a combined cost of $193 million. The principal legal and environmental exposures are the proposed asbestos settlement tied to Pittsburgh Corning Corporation, which remains subject to Bankruptcy Court proceedings, and environmental remediation, with reserves of $226 million at year-end 2011. PPG states that unreserved environmental losses could be as much as $200 million to $400 million, and that the outcome of current lawsuits is not expected to have a material effect on its consolidated financial position or liquidity.
Feb 16, 2012
2010
PPG Industries Annual Report, Year Ended Dec 31, 2010
PPG Industries, Inc. reported 2010 net sales of $13.4 billion, up from $12.2 billion in 2009, with the filing stating the sales increase totaled 10%: 8% from higher sales volumes in all reportable segments except Architectural Coatings - EMEA, 1% from higher selling prices, and the remainder from foreign currency and acquisitions. Net income attributable to PPG was $769 million, or $4.63 per diluted share, compared with $336 million, or $2.03 per diluted share, in 2009. The 2010 results include an $85 million charge, or $0.51 per share, from a change in U.S. tax law related to retiree prescription drug costs. Cash from operating activities was $1.31 billion in 2010, and the company entered 2011 with about $2 billion in cash and short-term investments, which it described as a historically high level, including proceeds from a $1 billion debt offering in November 2010. The Industrial Coatings segment showed the strongest recovery, with sales up $640 million or 21% and segment income up $219 million. Performance Coatings sales rose 5% and Glass sales rose 16%, while Architectural Coatings - EMEA sales fell 4%. Raw material inflation was a key headwind: coatings raw material costs rose about $210 million in 2010 after a $150 million decline in 2009, and the company said it expects persistent raw material inflation to continue in early 2011, with pricing actions and cost reductions planned to offset it. Management expects higher demand in 2011 and an ongoing tax rate of 26% to 27%. The filing also highlights significant legal and environmental exposures. PPG reported environmental reserves of $272 million at December 31, 2010, and the filing states that losses may be as much as $200 million to $400 million above those reserves, which are reasonably possible but not probable. The proposed asbestos settlement under the third amended Pittsburgh Corning plan of reorganization remains subject to court approval, with aggregate PPG cash payments of approximately $825 million plus 1,388,889 PPG shares. Management stated that these matters are not expected to have a material effect on consolidated financial position or liquidity, though they may be material to results of a particular period.
Feb 17, 2011
2009
PPG Industries Annual Report, Year Ended Dec 31, 2009
PPG Industries, Inc. reported 2009 net sales of $12.24 billion, down from $15.85 billion in 2008, as the global recession reduced volumes across all reportable segments. Net income attributable to PPG fell to $336 million ($2.03 diluted EPS) from $538 million ($3.25) in 2008, after a $186 million business restructuring charge in 2009. Cash from operating activities was $1.345 billion, and the company entered 2010 with over $1 billion of cash on hand, which the filing describes as a historically high level. Management cites working capital reductions and a second-highest-on-record year of cash generation as supporting its outlook for gradual recovery in 2010. The filing highlights several material contingencies. The company carries $287 million of environmental reserves, and it reports reasonably possible unreserved environmental losses of $200 million to $300 million. A modified asbestos settlement tied to the Pittsburgh Corning bankruptcy plan carries a total obligation of $772 million, of which $534 million is current. The plan's court hearing is scheduled for April 2010. Management states that the outcome of lawsuits and claims will not have a material effect on consolidated financial position or liquidity, though results could be material in a given period. Balance sheet leverage improved over the year. Total debt to total capitalization was 47% at December 31, 2009, versus 54% a year earlier, and the company repaid $646 million of debt in 2009. Capital spending fell to $265 million from $2.06 billion in 2008, which included the SigmaKalon acquisition. Pension contributions were about $450 million in 2009, and management expects about $240 million in 2010.
Feb 18, 2010
2008
PPG Industries Annual Report, Year Ended Dec 31, 2008
PPG Industries, Inc. reported a transformative 2008 driven by the January 2, 2008 acquisition of SigmaKalon, a coatings producer. Net sales rose 30% to $15.8 billion (from $12.2 billion), with sales increasing 28% due to acquisitions, 4% from higher selling prices and 2% from foreign currency, partly offset by a 2% decline in volumes and a 2% decline from the automotive glass divestiture. Net income fell to $538 million, or $3.25 per diluted share, from $834 million, or $5.03 per share in 2007. The decline reflected a $163 million business restructuring charge, $94 million of flow-through inventory step-up costs from the acquisition, $161 million higher interest expense, and a $163 million restructuring charge, along with higher selling, general and administrative expenses, which rose to 21.7% of sales from 18.9%. The balance sheet expanded materially, with total assets of $14.7 billion and long-term debt of $3.0 billion, up from $1.2 billion. The debt-to-total-capitalization ratio rose to 54% from 42%. PPG ended the year with $1.0 billion of cash and cash equivalents, generated $1.36 billion of operating cash flow, repaid $681 million of debt, and paid $343 million in dividends. The company also divested a majority interest in its automotive glass and services business, receiving $315 million in total proceeds and retaining an approximately 40% stake. Management flagged a weak outlook for 2009, citing a deepening recession, an expected global automotive production decline of nearly 10%, and pension costs projected to rise by $100 to $125 million. The filing also describes significant legal and environmental exposures, including a proposed asbestos settlement with a current liability of $491 million and an accrued environmental reserve of $299 million, and an antitrust class action regarding flat glass. Management expects the environmental remediation cash outlays to be about $50 million in 2009.
Feb 19, 2009
2007
PPG Industries Annual Report, Year Ended Dec 31, 2007
PPG Industries, Inc. reported 2007 net sales of $11.21 billion, up 14% from $9.86 billion in 2006, with 6% of the increase from acquisitions, 4% from volumes and 4% from foreign currency translation. Net income rose to $834 million ($5.03 per diluted share) from $711 million ($4.27 per diluted share), though 2007 results include charges for asbestos settlement adjustments and gains or losses tied to discontinued operations. Income from continuing operations was $815 million, and the effective tax rate on continuing operations was 28.6%, compared with 25.1% in 2006. Cash from operating activities was $996 million, capital spending was $584 million, and dividends paid were $335 million. The most significant development for investors is the January 2, 2008 completion of the SigmaKalon acquisition for a total transaction value of approximately $3.2 billion, consisting of $1,673 million of cash paid to the seller and $1,517 million of debt assumed. The filing states PPG expects SigmaKalon to contribute about $3 billion of 2008 sales, that the deal is not expected to be accretive to 2008 earnings, and that it is expected to be accretive in 2009. Financing relied on bridge loans and a revolving credit facility, and the ratio of total debt to total capitalization rose to 42% at December 31, 2007 from 28% a year earlier. Total short-term debt was $1,818 million at year-end 2007. The filing also highlights ongoing legal and environmental exposures. Environmental reserves totaled $276 million at year-end 2007, and the company may face additional unreserved losses estimated at $200 million to $300 million. Asbestos liabilities remain tied to the PPG Settlement Arrangement, which is still subject to court proceedings in the Pittsburgh Corning bankruptcy, and several new flat glass antitrust class actions were filed in early 2008. The company also sought to sell its automotive glass businesses after a sale agreement with Platinum Equity was terminated, and it intends to sell those businesses during 2008.
Feb 21, 2008
2006
PPG Industries Annual Report, Year Ended Dec 31, 2006
PPG Industries, Inc. reported 2006 net sales of $11.04 billion, up 8% from $10.20 billion in 2005, with net income of $711 million and diluted earnings per share of $4.27, compared with $596 million and $3.49 in 2005. Sales growth was attributed to acquisitions (4%), higher volumes (2%) and higher selling prices (2%). Results were pressured by $257 million in other charges, including $185 million of pretax environmental remediation charges for New Jersey sites and $42 million for legal settlements. Cost of sales rose slightly to 63.7% of sales from 63.5%. The company operates five reportable segments: Industrial Coatings, Performance and Applied Coatings, Optical and Specialty Materials, Commodity Chemicals and Glass. Segment sales growth was strongest in Performance and Applied Coatings (up 16%) and Industrial Coatings (up 11%), while Commodity Chemicals declined 3%. Cash from operating activities was $1.13 billion, and capital spending was $774 million including $402 million for acquisitions. The company is also evaluating strategic alternatives, including possible sale, for its automotive OEM glass, automotive replacement glass and services, and fine chemicals operating segments, and has engaged outside advisors for that review. Significant contingencies remain. Environmental reserves rose to $282 million at year-end 2006 from $94 million, and the filing estimates possible additional unreserved losses of $200 million to $300 million. The asbestos settlement arrangement tied to Pittsburgh Corning remains subject to bankruptcy court approval, and the court denied confirmation of the plan on December 21, 2006, with reconsideration pending.
Feb 21, 2007
2005
PPG Industries Annual Report, Year Ended Dec 31, 2005
PPG Industries, Inc. reported 2005 net sales of $10.2 billion, up 7% from $9.5 billion in 2004, with sales growth driven mainly by higher selling prices in chemicals and coatings. Net income fell to $596 million, or $3.49 per share assuming dilution, from $683 million and $3.95 in 2004. The decline reflects a series of charges in "Other charges," which rose $284 million, including a $132 million Marvin legal settlement net of insurance, a $61 million federal glass class action antitrust settlement, $34 million of hurricane-related direct costs, a $27 million fine chemicals asset impairment, and $19 million in debt refinancing costs. Inflation, particularly raw material costs in coatings and natural gas and energy costs in glass and chemicals, further pressured margins, and the gross profit percentage slipped to 36.5% from 36.9%. Looking ahead, management expects continued cost pressures in 2006 from pensions, healthcare, natural gas and raw materials, and plans to record pretax restructuring charges of $50 million to $70 million in the first quarter of 2006 tied to workforce reductions and facility consolidation. Management also expects chlor-alkali pricing to remain strong entering 2006, and estimates the first-quarter 2006 natural gas cost at about $10.00 per mmbtu. The company generated $1,065 million in operating cash flow in 2005 and repurchased $607 million of its common stock, while total debt as a share of total debt and equity rose to 29% from 27%. Significant contingent exposures remain. The asbestos settlement arrangement, tied to the Pittsburgh Corning bankruptcy, is still subject to bankruptcy court confirmation, and PPG carries $94 million in environmental reserves against possible additional losses of $200 million to $400 million. The company is also defending automotive refinish antitrust cases, and it states that it believes these matters will not have a material effect on its financial position or liquidity, although results in any given period could be affected.
Feb 16, 2006
2004
PPG Industries Annual Report, Year Ended Dec 31, 2004
PPG Industries, Inc.'s 2004 Form 10-K reports net sales of $9.5 billion in 2004, up from $8.8 billion in 2003. Sales rose 7% on improved volumes across all segments and 3% from foreign currency translation, offset by a 1% decline from lower selling prices. Net income was $683 million, up $189 million from 2003, and diluted earnings per share were $3.95, up $1.06. Gross profit margin held steady at 36.9%, and the effective tax rate fell to 30.29% from 34.76%. By segment, coatings sales were $5.3 billion with operating income of $777 million, glass sales were $2.2 billion with operating income of $169 million, and chemicals sales were $2.0 billion with operating income of $291 million. Management highlighted high natural gas costs as a continuing drag, with each one-dollar change per mmbtu estimated to affect annual operating costs by $60 million to $70 million. It also flagged rising coatings raw material costs and tight chlor-alkali supply that lifted ECU prices in the second half of 2004. Cash from operating activities was $1,018 million, and the ratio of total debt to total debt and equity fell to 27% from 36%. The company repaid over $350 million of debt, repurchased $100 million of stock in 2004, and announced plans to repurchase up to $500 million by year-end 2005. Ongoing legal exposures include the Pittsburgh Corning asbestos settlement, which is pending bankruptcy court approval, and a $166 million Marvin Windows judgment under appeal, along with antitrust suits in flat glass and automotive refinish.
Feb 17, 2005
2003
PPG Industries Annual Report, Year Ended Dec 31, 2003
PPG Industries, Inc. reported 2003 net sales of $8.76 billion, up 9% from $8.1 billion in 2002, with net income of $494 million, or $2.89 per diluted share, compared with a net loss of $69 million in 2002. Sales growth came from foreign currency translation (4%), higher volumes (3%) and higher selling prices (2%). The gross profit percentage slipped slightly to 36.9% from 37.2%, as higher pension and postretirement medical costs and energy costs offset gains from higher chemicals pricing and manufacturing efficiencies. Results were also shaped by the prior-year $755 million pretax asbestos settlement charge, which was $38 million in 2003. Operating income rose to $978 million from $846 million, led by the coatings segment. Cash from operating activities was $1,123 million in 2003, and PPG reduced debt by nearly $400 million during the year, bringing the three-year reduction to more than $1.3 billion. The ratio of total debt, including capital leases, to total debt and equity fell to 36% from 49%. Management expects 2004 pension costs to be slightly lower than 2003, while other postretirement benefit costs are expected to rise by about $15 million. Natural gas costs remain a significant risk, with each one-dollar change per mmbtu estimated to affect annual operating costs by $60 million to $70 million. Legal and contingent exposures remain material to investors. The Pittsburgh Corning asbestos settlement, which carries about $998 million in aggregate cash payments, depends on bankruptcy court approval and a plan vote due March 2, 2004. A $156 million Marvin Windows judgment is under appeal. Environmental reserves total $92 million, with possible additional losses estimated at $200 million to $400 million.
Feb 20, 2004
2002
PPG Industries Annual Report, Year Ended Dec 31, 2002
PPG Industries, Inc. reported a 2002 net loss of $69 million, or $0.41 per diluted share, compared with net income of $387 million, or $2.29 per diluted share, in 2001. The loss was driven by a pretax charge of $755 million for the asbestos settlement (net of insurance-related items, recorded as $772 million gross in the second quarter per Note 13) and a $81 million restructuring charge. Excluding non-recurring items, the company reports net income of $476 million, or $2.80 per diluted share, versus $458 million, or $2.71, in 2001. Net sales declined 1% to $8.07 billion from $8.17 billion, with lower glass and chemicals selling prices partly offset by higher coatings and chemicals volumes. Segment results were mixed. Coatings sales rose 2% to $4.48 billion and operating income increased to $605 million from $495 million. Glass sales fell 7% to $2.07 billion and operating income dropped to $143 million from $255 million, reflecting lower volumes and prices. Chemicals sales were flat at about $1.5 billion, while operating income rose to $124 million from $91 million. Management guided to higher pension and postretirement costs of about $130 million in 2003, reducing earnings per share by about $0.50, and flagged natural gas cost volatility as a key risk. Balance sheet and cash flow were pressured by the asbestos settlement and a $726 million after-tax increase in the minimum pension liability, which cut shareholders' equity to $2.15 billion from $3.08 billion. Cash from operations was $872 million, and the company reduced debt by over $400 million during 2002. The debt-to-capitalization ratio rose to 49% from 44%. Contingencies remain significant, including a $156 million Marvin Windows judgment under appeal and antitrust suits, though management states these will not materially affect financial position or liquidity.
Feb 21, 2003
2001
PPG Industries Annual Report, Year Ended Dec 31, 2001
PPG Industries, Inc. reported 2001 net sales of $8.17 billion, down from $8.63 billion in 2000, with the decline driven mainly by lower volumes across all three segments (coatings, glass and chemicals) and a stronger U.S. dollar. Net income fell to $387 million, or $2.29 per diluted share, from $620 million, or $3.57, in 2000. Results absorbed a $101 million pretax restructuring charge taken in the first quarter of 2001, and the company said the North American recession and weak global economy continued into early 2002. The company plans a further restructuring charge of $60 million to $90 million before taxes in the first quarter of 2002. It expects pension and other postretirement benefit costs to rise by about $130 million in 2002, reducing earnings per share by about $0.49, and it expects SFAS No. 142 to add roughly $30 million, or $0.18 per share, to 2002 net income. Natural gas costs were a major pressure on the glass and chemicals segments, with each one-dollar change per mmbtu estimated to affect annual operating costs by about $60 million. Legal exposure is a notable investor concern. On February 14, 2002, a federal jury awarded Marvin Windows and Doors $136 million on a breach of warranty claim, which PPG intends to appeal. PPG also faces about 116,000 asbestos-related claims tied to Pittsburgh Corning Corporation, which filed for Chapter 11 in April 2000, and it is named in antitrust suits in the glass and automotive refinish industries. The company states that, aside from any voluntary asbestos settlement, these matters should not materially affect its consolidated financial position or liquidity, though results of a particular period could be affected.
Feb 22, 2002
1998
PPG Industries Annual Report, Year Ended Dec 31, 1998
PPG Industries, Inc. reported 1998 net sales of $7.51 billion, up from $7.38 billion in 1997, with net income rising to $801 million ($4.48 per share, assuming dilution) from $714 million ($3.94) a year earlier. The filing attributes the earnings increase to an $82 million after-tax gain from the sale of its European flat and automotive glass businesses, a significant reduction in business divestiture and realignment charges, insurance recoveries of certain past environmental costs, and higher sales volumes. Sales growth was driven by an 8% increase in volumes, largely from acquisitions in the coatings segment, partly offset by divestitures, lower chlor-alkali prices and currency translation. By segment, coatings sales rose 13% to $3.5 billion, but operating income fell to $546 million from $561 million amid growth-initiative expenses, inflation and the General Motors strike. Glass sales declined 5% to $2.5 billion while operating income rose to $478 million from $286 million, helped by the $85 million divestiture gain. Chemicals sales fell 7% to $1.5 billion and operating income dropped to $354 million from $428 million on weaker chlor-alkali prices. Management expects continued Asian economic weakness to pressure chlor-alkali and some glass prices in 1999, while anticipating volume growth from new products, acquisitions and a full year of 1998 acquisitions. Balance sheet strengthened, with shareholders' equity rising to $2.88 billion from $2.51 billion and total debt-to-capital falling to 37% from 40%. Cash from operations was $942 million, capital spending totaled $877 million (including $390 million for acquisitions), and the company paid $252 million in dividends and repurchased shares. Environmental reserves were $94 million, and the filing discloses a possible additional exposure of $200 million to $400 million; antitrust suits alleging price-fixing in certain glass products are pending but are described as in an early stage.
Feb 19, 1999
1997
PPG Industries Annual Report, Year Ended Dec 31, 1997
PPG Industries, Inc. reported 1997 net sales of $7,379 million, up from $7,218 million in 1996, and net income of $714 million, or $3.97 per common share ($3.94 assuming dilution), compared with $744 million and $3.96 in 1996. Results were held back by a $102 million pre-tax business divestiture and realignment charge tied mainly to the restructuring of glass operations, including the closure of the Perry, Ga., flat glass plant and the planned sale of equity interests in two Asian float glass plants (a $37 million pre-tax charge within that total). These were partly offset by a $59 million pre-tax gain from the sale of the surfactants business. Segment operating income was $568 million for coatings, $330 million for glass and $430 million for chemicals. The company made several acquisitions in late 1997, including the packaging coatings businesses of BASF Lacke + Farben AG and Keeler & Long, Max Meyer Duco S.p.A. and Phillips Paint Products, and Sipsy Chimie Fine S.C.A. The cost of these 1997 acquisitions was $363 million plus the assumption of $42 million in indebtedness. Cash from operating activities was $1,007 million, capital spending was $829 million, and long-term debt rose to $1,257 million from $834 million at year-end 1996. Shareholders' equity was $2,509 million at December 31, 1997. The company repurchased about 5.3 million shares for $302 million during 1997 and paid $239 million in dividends. Management's outlook expects increased volume in many businesses in 1998, supported by a full year of results from 1997 acquisitions, while noting that economic weakness in Asia could affect chemicals prices. Environmental reserves were $100 million at December 31, 1997, and the company estimated additional reasonably possible unreserved losses of $200 million to $400 million, which management does not consider probable.
Feb 24, 1998
1995
PPG Industries Annual Report, Year Ended Dec 31, 1995
PPG Industries, Inc. reported 1995 net sales of $7.06 billion, up from $6.33 billion in 1994, with net income of $767.6 million, or $3.80 per share, compared with $514.6 million, or $2.43 per share, in 1994. The filing states that the sales increase was mainly due to higher overall prices, particularly for chlor-alkali, fiber glass and flat glass products, along with higher volumes in each segment and favorable currency translation. Net income was helped by an after-tax gain of $24 million from a legal settlement with Pilkington plc over a glass technology dispute. Operating income rose in glass and chemicals, while coatings and resins operating income declined to $469 million from $497 million. The company generated $1,072.0 million in cash from operating activities in 1995 and repurchased about 13.5 million shares for $585 million under share repurchase programs. Total assets were $6.19 billion and total shareholders' equity was $2.57 billion at December 31, 1995. Long-term debt was $735.5 million. The filing states that management expects a challenging 1996 economic environment, with signs of softening in the North American automotive industry and in Western Europe, and that the company is more favorably positioned to withstand such conditions because of its diversification. The filing also discloses environmental exposure: reserves for environmental contingencies were $100 million at year-end 1995, and the company said it may face additional loss contingencies estimated at $200 million to $400 million, which are reasonably possible but not considered probable. Management believes these matters will not have a material adverse effect on financial position or liquidity.
Feb 16, 1996
1994
PPG Industries Annual Report, Year Ended Dec 31, 1994
PPG Industries, Inc. reported 1994 net sales of $6.33 billion, up from $5.75 billion in 1993, driven by higher sales volumes, including sales from the January 1994 acquisition of Akzo's European automotive original coatings business, and marginally higher prices across segments. Net income rose to $514.6 million, or $2.43 per share, from $22.2 million, or $0.10 per share, in 1993, which had included a $273 million net charge for accounting changes. Gross profit as a percentage of sales increased to 39% from 37%, reflecting sales mix gains, lower manufacturing costs, and the benefits of divested and discontinued businesses. By segment, coatings and resins sales rose to $2.6 billion with operating income of $497 million, glass sales rose to $2.4 billion with operating income of $315 million, and chemicals sales rose to $1.3 billion with operating income of $227 million. The company completed the divestiture of its Biomedical Systems Division, with the sensors business sold in January 1995, after a business divestiture and realignment charge of $85 million in 1994. Cash from operating activities was $691 million, and the company repurchased shares under a 6.5-million-share program completed in January 1995 at a total cost of $242 million. The filing notes environmental reserves of $90 million at December 31, 1994, and states that environmental contingencies could be as much as $200 million to $400 million on a reasonably possible basis, though not currently considered probable. Management stated that compliance with federal, state, and local requirements has not had a material effect on PPG's financial position, results of operations, or liquidity.
Feb 21, 1995
1993
PPG Industries Annual Report, Year Ended Dec 31, 1993
PPG Industries, Inc. reported 1993 net sales of $5.75 billion, essentially flat with $5.81 billion in 1992, with higher sales volumes offset by currency translation, lower chemicals and glass prices, and the absence of sales from divested businesses. Operating income improved in coatings and resins ($419 million vs. $368 million) and glass ($200 million vs. $119 million), while chemicals declined to $138 million from $185 million. Gross profit as a percentage of sales rose to 37% from 36%. Net income fell to $22.2 million, or $0.21 per share, from $319.4 million, or $3.01 per share, in 1992. The decline reflects a net charge of $272.8 million for three accounting changes (SFAS Nos. 106, 109 and 112), business divestiture and realignment charges of $126.4 million, and a $27.8 million gain on the sale of an interest in an insurance company. Income before accounting changes was $295.0 million, or $2.78 per share. Cash from operations rose to $740.7 million from $670.2 million, and dividends paid were $220.8 million. The company is divesting its Biomedical Systems Division, with the medical electronics portion expected to close by the end of the first quarter of 1994 and the sensors business by the end of 1994. Environmental exposure remains a disclosed item: reserves for remediation were $90 million at December 31, 1993, and management believes expenditures will not have a material adverse effect on financial position, operating earnings or liquidity. Total debt, including capital leases, was 31% of total debt and equity at year-end 1993, versus 33% a year earlier.
Feb 17, 1994