PPG planning 1,700 global job cuts

PITTSBURGH – PPG on Friday said it plans a broad cost-cutting program throughout its global operations that will generate annual savings of between $120 million and $130 million.

The Pittsburgh-based paint and coatings producer said the restructuring will result in a fourth-quarter pretax charge of $190 million to $200 million, or 53 cents to 58 cents per share.

The plan includes cutting approximately 1,700 jobs, or about 3.6 percent of PPG’s worldwide workforce of about 47,000.

“So there is expected to be minimal overall impact to any specific region,” said Mark Silvey, a PPG spokesman.

The company said its restructuring actions “are focused on certain regions and end-use markets where business conditions are weakest” and would include cuts in operations and administration.

“Because of continued slow overall growth in global demand, we are taking decisive action to adjust our cost structure,” said Michael McGarry, PPG’s chairman and chief executive.

Of the total pretax charge, about $140 million represents cash costs and $50 million to $60 million is related to write-downs for assets and other non-cash costs, PPG said.

After reporting a third-quarter loss in October, PPG said it was reviewing cost-cutting options.

It lost $201 million, or 75 cents per share on third-quarter sales of $3.8 billion. At the time, Mr. McGarry blamed the loss primarily on slow European markets and declines in foreign currency rates.