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PPG shareholders vote against proposals; sales, profit see double-digit increases [The Pittsburgh Tribune-Review :: ](Pittsburgh Tribune-Review (PA) Via Acquire Media NewsEdge) April 17--Shareholders of PPG Industries Inc. voted down proposals to require an independent chairman and a long-standing rule that requires a super majority to make changes that govern the company's board of directors. At the Downtown-based company's annual meeting on Thursday, 77 percent of shareholders voted against the proposal to adopt a policy requiring an independent chairman. Charles E. Bunch holds both CEO and chairman titles. The shareholder proposal was submitted by John Chevedden of Redondo Beach, Calif., and the company recommended against its adoption. Chevedden's proposal said the combined roles "can hinder our board's ability to monitor our CEO's performance." PPG's board recommended against the proposal, saying it was not necessary to achieve independent leadership and management oversight. The idea has been promoted by shareholder advocates. In recent months, corporations such as U.S. Steel Corp. and Walt Disney Co. have separated the jobs. Last week, Bank of New York Mellon Corp. shareholders defeated a similar proposal. PPG shareholders also defeated a board-approved proposal to change the company's bylaws that require 80 percent of its outstanding common stock, a "super majority," on corporate actions. A wrinkle was -- it took a super majority vote to change PPG's super majority rule -- and only 67 percent of the company's common stock was voted in favor of the change, instead of the 80 percent needed. PPG's board placed it on the agenda this year after it won 78 percent of votes cast at the 2013 meeting as a shareholder proposal from Chevedeen. Separately, PPG reported double-digit increases in revenue and operating profit in the first quarter -- the result of a recent acquisition, higher paint sales and cost cuts. Shares of the Downtown-based paint and glass manufacturer jumped in afternoon trading to $196.88, up $5.25, or 2.7 percent. PPG said revenue increased 17 percent to $3.6 billion in the first three months of the year from $3.1 billion a year ago. Acquired businesses contributed to the increase, mainly AkzoNobel NV's North American architectural coatings unit, which PPG bought for $1.05 billion in April 2013. That deal moved PPG into the No. 1 spot in paint worldwide. PPG said operating profit from continuing operations increased 45 percent to $277 million from $191 million a year ago. PPG has been restructuring its businesses after the AkzoNobel transaction and others, including the sale of its 51 percent share of Transitions Optical, a joint venture with Essilor International, for $1.73 billion. That deal was completed on March 31. Net income for the quarter was $1.26 billion, or $9.07 a share, down from $2.41 billion, or $16.49 share, last year. The current period included a gain of $946 million from the sale of Transitions and PPG's sunlens business. The year-ago period included a gain of $2.2 billion from the sale of PPG's former commodities chemicals business on Jan. 28, 2013. CEO Charles E. Bunch said sales volume increased 5 percent in the first quarter, the highest level in three years. The company benefited from growth in Europe and in automotive and aerospace sectors. "We anticipate solid global growth to continue, but it will not be uniform across geographies or end-use markets," Bunch said. As a result of the recent divestitures, PPG has a strong cash position, which it intends to use for more acquisitions and stock repurchases, he said. The company said cash and short-term investments totaled $3.0 billion on March 31. The board approved a 6-cents-a-share increase in the quarterly dividend to 67 cents, payable June 12 to shareholders of record May 12. It also approved repurchase of $2 billion of common stock. In the first quarter, PPG repurchased $200 million, or 1.1 million shares. John D. Oravecz is a staff writer for Trib Total Media. He can be reached at 412-320-7882 or [email protected]. ___ (c)2014 The Pittsburgh Tribune-Review (Greensburg, Pa.) Visit The Pittsburgh Tribune-Review (Greensburg, Pa.) at www.pittsburghlive.com/x/pittsburghtrib Distributed by MCT Information Services |