By Dow Jones

NEW YORK (Dow Jones) -- PPG Industries Inc. said Friday its fourth-quarter profit tumbled 65% from the year-earlier period, even as its sales for the quarter hit a record high.

The Pittsburgh maker of paints and specialty chemicals said its net income fell to $71 million, or 43 cents a share, from $200 million, or $1.22 a share in the year-ago period.

The latest earnings figure included a one-time boost of 2 cents a share related to an asbestos settlement, which is still pending court proceedings.

Sales rose 3% to $3.19 billion from $3.10 billion in the fourth quarter of 2007. For all of 2008, sales totaled $15.8 billion, compared to $12.2 billion the prior year.

The results missed Wall Street expectations. Analysts had tipped adjusted earnings of 53 cents a share, above the actual result of 41 cents, according to a survey by FactSet Research.

"Without question, the fourth quarter was very challenging," said PPG Chairman and Chief Executive Officer Charles Bunch. "Our early read on 2009 is that the first quarter and possibly the first half of the year is shaping up to be an even greater challenge than the fourth quarter 2008 due to further weakening demand."

Bunch said that the company will "continue to evaluate further cost actions that may result in additional restructuring and related cost savings during the year."

PPG (PPG) shares rose with the broader market Friday, up almost 1% in early morning trade at $41.80.

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