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PPG Industries to restructure and save $125 million. At least

Staff Writer |
PPG board approved significant and broad restructuring actions to reduce its global cost structure.

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PPG will record a pretax restructuring charge of $190 million to $200 million, or 53-58 cents per diluted share, in the fourth quarter 2016, of which approximately $140 million represents cash costs and $50 million to $60 million is related to the write-down of certain assets and other non-cash costs.

Of the approximately $140 million total cash outlay, about $110 million is expected in 2017, with the balance to occur in 2018.

In addition to the aforementioned pretax charge and cash costs, approximately $15 million of incremental restructuring-related cash costs are expected during 2017, for certain items that are required to be expensed on an as-incurred basis.

When completed, the company expects the restructuring actions to generate $120 million to $130 million in annual savings, with $40 million to $50 million of savings projected to be realized in 2017 and the remainder of the expected annual savings to be substantially realized by year-end 2018.

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