PPG Industries has announced Michael H. McGarry will become President and CEO, effective 1 September, 2015. McGarry will join the company’s Board of Directors immediately.
McGarry, who has served as PPG’s President and Chief Operating Officer since March, will succeed Chairman and CEO Charles E. Bunch in the role of CEO. Bunch, who has led PPG for the last decade, will continue as Executive Chairman.
“Our company is strong financially and our global business portfolio remains well positioned for future growth,” said McGarry. “I am looking forward to leading PPG as we continue to focus on our customers, deliver excellent business performance and create additional shareholder value.”
Bunch said, “Michael is a proven strategic leader who is ideally suited to lead PPG. He brings a strong focus on operational excellence and an unwavering commitment to PPG’s core values.”
During his 34 years with PPG, McGarry has served in a variety of key business and functional leadership roles in the United States, Europe and Asia. In recent years, he helped lead several strategic actions that have transformed PPG’s business portfolio, most notably the acquisition of SigmaKalon; the separation of PPG’s former commodity chemicals business; the acquisition and integration of AkzoNobel’s North American architectural coatings business; and, most recently, the acquisition of Consorcio Comex, S.A. de C.V.
PPG Industries topped second-quarter 2015 earnings expectations on the back of strength in its automotive businesses and synergies from acquisitions. However, the company witnessed lower profits of $337 million or $1.23 per share in the reported quarter, a roughly 14% decline from $393 million or $1.40 per share recorded a year ago. Unfavorable currency translation hurt its revenues which fell short of analysts’ expectations.
PPG Industries incurred a business restructuring charge of $140 million in the quarter that weighed on its bottom line. Barring charges related to portfolio transformation and business restructuring actions, the company recorded earnings from continuing operations of $1.67 per share in the quarter.
Revenues for the quarter were $4,100 million, a modest 0.4% year-over-year rise. Currency impact reduced sales by around $320 million, offsetting contributions from acquisitions and modest volume gains.
Moving ahead, PPG Industries plans to remain actively focused on managing costs. The company envisions incremental benefits from lower cost structure. It also expects lower impact from unfavorable foreign currency translation in the second half of 2015.