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PPG Industries Annual Report, Year Ended Dec 31, 1994

Filing Date
Filed February 21, 1995
Period End
December 31, 1994
Security
PPG
In the record · 2016–202610-K1210-Q338-K141

PPG filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed February 21, 1995. Cited figures are marked; the original filing is the authoritative source.

PPG Industries, Inc. reported 1994 net sales of $6.33 billiona, 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 millionb, 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 millionc 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 milliond 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.

02—Key points

Key Highlights

  1. Net sales of $6.33 billion in 1994, up from $5.75 billion in 1993
  2. Net income of $514.6 million, or $2.43 per share, compared with $22.2 million, or $0.10 per share, in 1993
  3. Gross profit percentage rose to 39% from 37%
  4. Coatings and resins operating income of $497 million on sales of $2.6 billion; glass operating income of $315 million on sales of $2.4 billion; chemicals operating income of $227 million on sales of $1.3 billion
  5. Cash from operating activities of $691 million; dividends paid of $238 million
  6. Business divestiture and realignment charge of $85 million in 1994, primarily for the Biomedical Systems Division, which was fully divested with the January 1995 sale of its sensors business
  7. Environmental reserves of $90 million at December 31, 1994

03—Questions

Frequently Asked Questions

  1. How did PPG's earnings change in 1994?

    Net income increased to $514.6 million, or $2.43 per share, from $22.2 million, or $0.10 per share, in 1993. The prior year included a net charge of $273 million for accounting changes. Higher sales volumes, improved gross margin, and lower interest expense contributed, partly offset by higher income tax expense and increased research and development and environmental costs.

  2. Which business segments drove PPG's results?

    Coatings and resins had sales of $2.6 billion and operating income of $497 million, up from $2.3 billion and $414 million in 1993. Glass had sales of $2.4 billion and operating income of $315 million, up from $122 million. Chemicals had sales of $1.3 billion and operating income of $227 million, up from $133 million.

  3. What acquisitions and divestitures affected 1994?

    PPG acquired Akzo's European automotive original coatings business in January 1994 and an automotive paint spray-booth business from Nalco in July 1994. It divested the Biomedical Systems Division, recording an $85 million pre-tax charge in 1994, and completed the sale of its sensors business in January 1995.

  4. What are PPG's environmental exposures?

    PPG had environmental reserves of $90 million at December 31, 1994 and 1993. The filing states that reasonably possible additional environmental contingencies could be as much as $200 million to $400 million, though these are not considered probable. Management believes compliance has not had a material effect on financial position, results of operations, or liquidity.

  5. How did PPG return cash to shareholders in 1994?

    PPG paid dividends of $237.8 million, or $1.12 per share, in 1994. It also purchased $280.0 million of treasury stock during the year, including repurchases under a 6.5-million-share program that was completed in January 1995 at a total cost of $242 million.

04—Continue

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