PPG Records Charges of $106 Million for Environmental Remediation
Pittsburgh-based PPG Industries has recorded an after-tax charge of $106 million to account for the estimated cost of proposed environmental remediation of sites in New Jersey and Louisiana. The company also recorded an after-tax charge of $14 million for a proposed settlement of a class-action lawsuit. Combined, these two charges will reduce third-quarter 2006 earnings per share by 72 cents.
Environmental remediation is expected to occur at PPG’s former chromium manufacturing location in Jersey City, N.J., which the company operated in the late 1950s and early 1960s. In addition, remediation is also expected to occur at the Calcasieu River estuary in Calcasieu Parish near the company’s Lake Charles, La., facility, where PPG is working with other potentially responsible parties.
“PPG is a member of the American Chemistry Council’s Responsible Care Initiative, and we take our commitment to the environment seriously,” said Charles E. Bunch, chairperson and chief executive officer of PPG.
Bunch added that the company’s exposure to legacy environmental remediation costs is concentrated in the locations covered by these charges and that they reflect material progress toward resolving these environmental contingencies, which have been disclosed in PPG’s financial reports for many years.
Separately, the company has agreed to settle a federal class-action lawsuit related to alleged antitrust violations in the U.S. automotive refinishing industry from 1993 through 2000. The settlement agreement remains tentative, pending formal documentation and necessary court proceedings.
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