International. During its earnings forecast for the first quarter of 2012, PPG Industries announced plans to cut 2,000 jobs, due to a weakness in demand from the European continent, which will affect the architectural coatings division.
The company is expected to outperform earnings per share compared to the same period in 2011, excluding non-recurring expenses related to workforce reduction, environmental remediation and acquisition-related expenses.
In that sense, the company expects earnings per diluted share to be in the range of 2 to 7 cents. Adjusted earnings per diluted share for the quarter, excluding non-recurring charges, are expected to be between $1.75 and $1.80. This compares with reported earnings per diluted share of $1.40 in the first quarter of 2011.
"Overall, business conditions during the quarter were strong in North America and strong in Asia and other emerging regions. PPG benefited from growth in several end-user markets, including aerospace, optical, automotive (original equipment manufacturers) and industrial. In addition, our architectural coatings business in the United States benefited from early signs of a recovery in construction and mild winter weather, but overall industry demand remained well below historical levels. Finally, demand in Europe was quiet, and we expect the economic recovery to occur slowly in that region," said Charles E. Bunch, CEO of PPG.
