PITTSBURGH -- PPG Industries reported record sales for the third quarter of $2.8 billion, surpassing third quarter 2005 record sales by 10 percent. The company said this marks the second-highest sales for any quarter in the company’s history. Third quarter 2006 net income was $90 million, or 54 cents a share.

Net income includes after-tax charges of $106 million, or 64 cents a share, for previously announced estimated environmental remediation costs at sites in New Jersey and Louisiana; $21 million, or 12 cents a share, for legal settlements, including the previously announced settlement charge for a federal class-action lawsuit related to alleged antitrust violations in the U.S. automotive refinish industry; and $4 million, or 2 cents a share, to reflect the net increase in the current value of the company's obligation under its asbestos settlement agreement first reported in May 2002. Net income also includes after-tax earnings of $7 million, or 4 cents a share, for an insurance recovery.

That compares with third quarter 2005 net income of $157 million, or 92 cents a share, which included after-tax charges of $37 million, or 22 cents a share, for legal settlements; $11 million, or 6 cents a share, for direct costs related to the impact of hurricanes Katrina and Rita; and $3 million, or 2 cents a share, to reflect the net increase in the current value of the company's obligation under its asbestos settlement agreement. Net income also included after-tax earnings of $12 million, or 7 cents a share, for insurance recoveries. Sales for third quarter 2005 were $2.55 billion.

For the first nine months of 2006, PPG recorded net income of $554 million, or $3.33 a share, which includes after-tax charges of $106 million, or 64 cents a share, for previously announced estimated environmental remediation costs at sites in New Jersey and Louisiana; $26 million, or 15 cents a share, for legal settlements; $23 million, or 14 cents a share, for business restructuring; and $14 million, or 8 cents a share, to reflect the net increase in the current value of the company's obligation under the asbestos settlement agreement. Net income also includes after-tax earnings of $24 million, or 14 cents a share, for insurance recoveries. Sales for the first three quarters of 2006 were $8.26 billion.

For the first nine months of 2005, PPG recorded net income of $483 million, or $2.81 a share, which included after-tax charges of $128 million, or 74 cents a share, for legal settlements; $11 million, or 6 cents a share, for direct costs related to the impact of hurricanes Katrina and Rita; $12 million, or 7 cents a share, for debt refinancing costs; and $10 million, or 6 cents a share, to reflect the net increase in the current value of the company's obligation under the asbestos settlement agreement. Net income also included after-tax earnings of $12 million, or 7 cents a share, for insurance recoveries. Sales for the first nine months of 2005 were $7.7 billion.

“Our record third quarter financial results demonstrate our ability to consistently deliver profitable growth in today's changing global economy,” said Charles Bunch, chairman and chief executive officer. “This marks the fourteenth consecutive quarter of year-over-year sales records for PPG. The third quarter’s double-digit sales growth is driven by our recent acquisitions and strong performance in Europe and Asia. Our results also reflect our continued efforts to reduce costs.

“Looking ahead,” Bunch said, “even with growth moderating in North America, we anticipate solid global economic growth and expect our excellent financial performance and cash generation to continue.” Bunch said that the cash generated will continue to reward shareholders and remain balanced between investing in PPG’s businesses to generate future earnings growth and funding dividends and share buybacks. Bunch added that PPG expects an increased level of share buybacks in the next quarter versus the previous quarters this year.

For more information about PPG, go to: http://www.ppg.com