Basic Materials Sector Review: Schnitzer Dividend, PPG Restructuring Actions
Schnitzer Steel (NASDAQ:SCHN): Schnitzer’s board of directors declared a dividend of 18.75c per common share, an increase in the annual cash dividend to 75c per share from the prior annual dividend of 7c. The quarterly dividend at the new rate will be payable on May 31 to shareholders of record on the close of business on May 17.
The shares closed at $39.46, up $1.4, or 3.68%, on the day. Its market capitalization is $1.08 billion.
PPG Industries, Inc. (NYSE:PPG): PPG will report an after-tax charge of approximately $164 million, or $1.06 per diluted share, related to business restructuring actions, the majority of which will occur in Europe. The pretax restructuring charge of $208 million includes cash costs of approximately $160 million and about $48 million related to the net write-off of certain assets and other non-cash items. Of the approximate $160 million of cash costs about 80 percent will be spent in 2012, with the remainder to be spent in 2013. The restructuring actions will impact about 2,000 employees, primarily in PPG’s global architectural coatings businesses, and in other PPG businesses and administrative functions in Europe, where some actions will be implemented following consultation with applicable works councils. When completed, PPG expects that these restructuring actions should result in annualized, pretax savings of about $140 million, with 2012 partial-year savings of between $40 million and $50 million.
The shares closed at $96.29, up $2.37, or 2.52%, on the day. Its market capitalization is $14.69 billion.
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