No business split for PPG
Paint giant will retain architectural and industrial coatings businesses.
PPG said it will retain its business model following full reviews from two separate, independent financial advisors.
The paint and coatings manufacturer had been exploring the idea of the separating its architectural and industrial coatings businesses. But after receiving results of the studies, the Pittsburgh-based company announced that its “current business portfolio presents the best opportunity to maximize long-term shareholder value.”
Instead, PPG said it will undertake several measures including further manufacturing optimization, the targeted pruning of low profit business in certain regions, and exiting certain smaller product lines that are not meeting profitability objectives.
“By maintaining our current portfolio, we avoid negative commercial, operational and procurement impacts and preserve full strategic flexibility for the future,” said Michael McGarry, PPG chairman and CEO. “As we have done consistently, we will continue our ongoing strategic assessment of all our businesses, ensuring each business continually earns its place in our portfolio based on current performance and future expectations.”
In April, PPG reported that first quarter 2019 sales fell roughly 4% to $3.62 billion while profits from continuing operations fell nearly 7% to $312 million.
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