PITTSBURGH—PPG Industries (NYSE:PPG) reported record sales for the fourth quarter of $3.2 billion, surpassing the prior year’s fourth quarter results by 3 percent. Fourth quarter net income was $71 million. Fourth quarter 2007 sales were $3.1 billion and net income was $200 million.

PPG’s Optical and Specialty Materials segment sales for the quarter decreased $4 million, or 2 percent. The optical products business, which includes optical monomers and Transitions Optical, experienced a mid-single-digit percentage volume increase with growth in all regions. Earnings for the Optical and Specialty Materials segment declined $13 million, or 28 percent, due to lower silicas volumes and higher selling and marketing expenses related to volume growth in optical products, the company said.

“Without question, the fourth quarter was very challenging. Like many other companies, PPG experienced dramatic volume declines in several of the industrial end-use markets that we serve due to the rapid deterioration in the global economy,” said Charles E. Bunch, PPG chairman and chief executive officer. “Our Industrial Coatings and Glass segments were the most severely impacted and both reported operating losses in the quarter. However, the remaining segments, which represent about 70 percent of the company’s sales, delivered solid results. Throughout the quarter, we continued to implement a variety of initiatives to reduce costs in all of our businesses in response to worsening global economic conditions. These actions were taken in addition to the restructuring program we began last September.”

PPG’s year-end 2008 sales were $15.8 billion. Net income was $538 million.

Commenting on PPG’s full year results, Bunch said, “We delivered solid earnings despite rapidly rising energy and material costs and substantial demand declines, and our cash from operations was approximately $1.4 billion, which surpassed the prior year by nearly 40 percent. We ended the year with $1 billion of cash on hand, which is up from approximately $500 million at the end of 2007. This gives us tremendous financial flexibility, which is critical in today’s business climate. Our performance this past year under intensely difficult market conditions continues to demonstrate our strengthened business portfolio and the success of our strategic direction.”