Restructuring to reduce costs

Citation

(2001), "Restructuring to reduce costs", Pigment & Resin Technology, Vol. 30 No. 3. https://doi.org/10.1108/prt.2001.12930cab.005

Restructuring to reduce costs

Restructuring to reduce costs

Keyword PPG Industries

PPG Industries reports that it is pursuing a number of restructuring actions that could result in a charge of $50 million to $100 million in the first quarter of 2001.

According to Raymond W. LeBoeuf, board chairman and chief executive, the initiatives will be directed toward:

Reducing costs, increasing efficiencies and accelerating performance improvement throughout the company.

He said:

We have been investigating all areas of the company, globally, since late summer. Our ultimate actions will involve facility and job consolidations, primarily in the coatings segment. The additional earnings generated by these actions will fully offset the charges in about a year.

LeBoeuf said:

As we have been noting since September, weakening economic conditions that emerged in late summer are not abating. We see continued declines in a number of our end markets, particularly vehicle production, while natural gas prices continue to rise. It is prudent that PPG responds aggressively, and we have been preparing to implement effective actions for several months.