PITTSBURGH -- PPG Industries has reported sales for the third quarter of $3.2 billion, a decline of 24 percent versus the prior year’s third quarter, including a 5 percent decline resulting from a business divestiture in 2008. The company reported net income of $159 million, or 96 cents per share. Adjusted net income was $161 million, or 97 cents per share. Third quarter 2008 sales were $4.2 billion, reported net income was $117 million, or 70 cents per share, and adjusted net income was $227 million, or $1.37 per share.

The third quarter sales decline of $1 billion included a $229 million impact from the 2008 divestiture of a majority interest in the automotive glass and services (AG&S) business, and about a $150 million impact from negative foreign currency translation. Year-over-year sales volumes decreased by about $500 million, or 12 percent, with declines in most regions, except Asia/Pacific. Selling prices declined by about $150 million versus last year’s third quarter, primarily due to lower commodity chemicals pricing.

Third quarter 2009 net income includes an after-tax charge of $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. Reported third quarter 2008 net income included after-tax charges of $110 million, or 67 cents per share, for business restructuring and $3 million, or 2 cents per share, for the proposed asbestos settlement. Third quarter 2008 net income also included an after-tax gain of $3 million, or 2 cents per share, on the divestiture of the AG&S business.

“In the quarter, we continued to restore profitability and to deliver strong cash generation,” said Charles Bunch, PPG chairman and chief executive officer. “We benefited from our aggressive cost-reduction actions, as well as a modest improvement in demand versus the first half of 2009, stemming from a very gradual recovery in the global economy.”

Bunch said that PPG’s third quarter adjusted earnings per share showed ongoing growth over the first two quarters of 2009. The company reported adjusted earnings per share in the first and second quarters of 2009 of 19 cents and 91 cents, respectively.

Bunch said the company’s efforts to transform its business portfolio over the past several years were evident in the third quarter results. PPG’s combined coatings and Optical and Specialty Materials segments achieved 7 percent higher year-over-year earnings and collectively accounted for more than 95 percent of total segment earnings, according to Bunch. “Additionally, we capitalized on our expanded geographic footprint and posted record earnings in the Asia/Pacific region due to stronger year-over-year performance in China. These improved results partially offset lower year-over-year earnings in our Glass segment and in our Commodity Chemicals segment, a business that experienced record sales and earnings levels last year.

“Also, due to our focus on working capital management, we generated about $650 million of cash from operations in the quarter,” said Bunch. “This is about 40 percent more than last year’s third quarter. We repaid about $700 million of debt in the quarter, and we still have about $900 million of cash on hand.

“Looking ahead to the fourth quarter, we anticipate only modest improvement in the overall economy. We expect growth in Asia to continue, and we anticipate that global automotive production will remain at least at the third quarter levels, if not higher,” Bunch said. “Currency translation, which had been a headwind for PPG all year thus far, will likely shift to a tailwind. What’s more, many of our businesses will exhibit normal, slower seasonal demand patterns.”