PITTSBURGH -- PPG Industries has reported sales for the first quarter of $2.8 billion, a decline of 30 percent versus the prior year’s first quarter including a 6 percent decline resulting from a business divestiture in 2008. The company reported a loss of $111 million, or 68 cents per share, which included a significant charge for business restructuring. Adjusted net income was $32 million, or 19 cents per share. First quarter 2008 sales were $4 billion and reported net income was $100 million, or 61 cents per share, and adjusted net income was $189 million, or $1.15 per share.

First quarter 2009 net loss includes aftertax charges of $141 million, or 86 cents per share, for business restructuring and $2 million, or 1 cent per share, to reflect the net increase in the current value of the company’s obligation under its proposed asbestos settlement, which is pending court proceedings. First quarter 2008 net income included non-recurring acquisition-related costs of $89 million aftertax, or 54 cents per share, stemming from the January 2008 acquisition of SigmaKalon.

“Our first quarter results reflect continued deterioration in the global economy, resulting in lower demand in many of the end-use markets we serve,” said Charles Bunch, PPG chairman and chief executive officer. “The most significant drop-offs occurred in global automotive OEM and in many industrial markets. We quickly implemented broad actions, including business restructurings and general spending controls, which were successful in offsetting some of the earnings impact from the lower demand levels.

Commenting on trends during the quarter, Bunch said, “March ended better than we initially anticipated, as activity steadied in several U.S. end-use markets. Our Asia Pacific region performed well in both February and March, nearly matching our strong prior year demand levels in both months. And, in Europe, our Architectural Coatings EMEA segment, despite being down for the quarter in total, delivered flat year-over-year sales volumes in March.”

“Looking ahead,” Bunch added, “we anticipate some seasonal demand growth in the second quarter, but expect activity levels to remain low in comparison with recent years. We will realize further benefits from our restructuring actions in the coming quarters. Also, we remain focused on prudently managing our cash and we ended the quarter with about $530 million of cash on hand, which is up several hundred million dollars from our 2007 and 2008 first quarter levels.

The first quarter 2009 charge of 86 cents per share relates to a business restructuring plan announced by the company last month that is expected to deliver pretax cost savings of approximately $60 million in 2009, growing to an annual run rate of about $140 million thereafter. The plan includes the closure of a paint manufacturing operation at the company’s Saultain, France, plant; several smaller production, laboratory, warehouse and distribution facilities across PPG’s businesses and regions; and a broad reduction in employment across the company globally. Last September, PPG announced another restructuring plan expected to result in pretax cost savings at an annual run-rate of about $100 million by the end of 2009.

Sales in the quarter were down $1.2 billion, including a $242 million impact from the divestiture of the automotive glass and services business. The remaining sales decline occurred in all regions of the world, led by declines exceeding 30 percent in EMEA (Europe, Middle East and Africa) and 20 percent in the United States, while Asia Pacific sales were down high-teen percentages. Foreign currency translation was a major factor in the Asia Pacific sales decline and a contributing factor in EMEA. Segment earnings, which exclude the impact of the 2009 restructuring charge and the 2008 acquisition-related costs, dropped to $192 million in the first quarter of 2009 compared with $396 million a year ago, primarily as a result of the lower sales.