PPG Industries loses warranty case, CEO to retire in July
The Associated Press reports that PPG Industries Inc., a maker of paint, stain and sealants, has said Raymond W. LeBoeuf will retire on July 1 after nearly 25 years with the company and eight years as its chairman and CEO. As part of PPG''s succession plan, the board named Charles E. Bunch, 55, as president and chief executive officer, effective immediately. Bunch will become chairman of the board and CEO July 1 upon LeBoeuf''s retirement. LeBoeuf, 58, joined PPG as treasurer in 1980 after holding various financial management posts at Ford Motor. LeBoeuf became CEO in July 1997, and chairman and CEO the following November. Bunch was elected president, chief operating officer and a PPG director in July of 2002. He joined the company in 1979 as an assistant to the corporate controller.
And last week, the United States'' Eighth Circuit Court of Appeals ruled against PPG Industries in a breach-of-warranty case brought against it by Marvin Windows and Doors. PPG estimates the total judgment, including interest, is between $145 and $150 million pretax, which the company plans to reserve in first quarter 2005. Marvin, of Warroad, Minn., alleged a wood preservative from PPG failed to prevent rot in its wood windows manufactured during the late 1980s. The original suit was filed in April 1994. A district judge dismissed the case in 1999, a decision that Marvin appealed. The Eighth Circuit Court of Appeals confirmed the dismissal of 12 of 13 claims but allowed Marvin to move forward with a jury trial on a breach-of-warranty claim, which resulted in a judgment against PPG in 2002.