Paint maker PPG Industries, plagued recently by slow demand, said Friday it will move forward with a restructuring plan that aims to save $120 million to $130 million a year.
“Because of continued slow overall growth in global demand, we are taking decisive action to adjust our cost structure,” Chief Executive Michael McGarry said, as the company has coped with the demand slowdown, weaker-than-expected growth in Europe and worse-than-expected effects from foreign exchange.
Despite the struggles in Europe, the company agreed to acquire Deutek, a Romanian paint and coatings company last month.
PPG first said it was considering restructuring in October, after swinging to a loss in its third quarter.
The Pittsburgh company expects to book pretax charges of $190 million to $200 million, or 53 cents to 58 cents a share, in the fourth quarter and an additional $15 million costs throughout 2017.
Shares, inactive premarket, have risen 3.6% to $99.41 so far this month.
By Imani Moise
Source: Wall Street Journal
3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.
Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.
Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).
