PPG CEO Discusses Economic Conditions       

At the end of January, PPG Industries Chairman and Chief Executive Officer Charles E. Bunch discussed the state of the global economy with members of the media in New York.
   Bunch said that deterioration in industrial end-use markets has spread from the United States to other regions, such as Europe and Asia/Pacific. Regarding the Asia/Pacific region, Bunch said that while the company has seen some slowdown in the economy, it has seen some positive signs in the automotive market in China during January.
   Bunch also discussed PPG's January 2008 acquisition of former Netherlands-based coatings manufacturer SigmaKalon. The SigmaKalon acquisition greatly expanded and strengthened PPG's presence in Western Europe and certain emerging regions, and it has positioned PPG for further improvements in productivity.
   During the second half of 2008, PPG experienced dramatic and continued weakness in demand from certain end-markets, particularly automotive and construction. As such, PPG announced in September 2008 a restructuring initiative aimed at saving approximately US$100 million on an annual basis by closing certain plants and idling assets in North America and Western Europe.
   Citing continued weakness in North American housing and automotive markets, Bunch said the first two quarters of 2009 are likely to continue to be marked by difficult market conditions.
   Bunch indicated that PPG will continue to evaluate a variety of options and measures to reduce costs in 2009 to address the declining economic conditions in North America and Western Europe.
   PPG reported record revenue for 2008 of US$15.8 billion. The company ended the year with US$1 billion of cash on hand, giving it tremendous financial flexibility, which is critical in today's business climate.