Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q2 2018 Earnings Presentation
12 slides from Ppg Industries's earnings presentation, Jul 19, 2018
Slide 1: PPG – Second Quarter 2018 Financial Results
PPG – Second Quarter 2018 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director, Investor Relations Information current as of July 19, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements Statements continued herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of
Slide 3: Second Quarter 2018 Financial Highlights
Second Quarter 2018 Financial Highlights Net sales up nearly 9 percent; local currency sales increased about 6 percent • Sales volumes increased by more than 3 percent year-over-year; growth in both reporting segments • Selling prices increased more than 2 percent; sequential improvement in both seg
Slide 4: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales* $4,250 +0.9% 4,131 +2.5% +3.2% $4,000 +2.2% 3,804 $3,750 $3,500 $3,250 ($ in millions) 2Q'17 Price Volume Currency Acq./Div. 2Q'18 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed
Slide 5: Second Quarter Net Sales Volumes
Second Quarter Net Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace Above Market At Market Above Market Above Market Automotive Refinish Above Market Above Market
Slide 6: Second Quarter Adjusted Earnings Per Diluted Share
Second Quarter Adjusted Earnings Per Diluted Share* Second Quarter Comments $2.00 Reporting segment updates included on the 1.90 1.80 following slides. Aggregate items embedded in 1.73 segment reviews: 1.58 • Selling prices increased 2.2% Y-O-Y • Raw material inflation continued to be elevated at
Slide 7: Performance Coatings
Performance Coatings PPG Olympic® introduced at The Home Depot® $MM (USD) 2Q17 2Q18 Chg % Net Sales 2,299 2,498 +199 +9% Income 405 428 +23 +6% Margin % 17.6% 17.1% -0.5% -- Select Net Sales Detail Total Volume Currency 2Q Y-O-Y Change +9% +4% +2% Third Quarter 2018 Outlook: Second Quarter (Y-O-Y):
Slide 8: Industrial Coatings
Industrial Coatings 7.0 6.5 Regional Auto Production Forecast (million units) $MM (USD) 2Q17 2Q18 Chg % 6.0 Net Sales 1,505 1,633 +128 +9% 5.5 5.0 Income 264 223 -41 -16% 4.5 4.0 Margin % 17.5% 13.7% -3.8% -- 3.5 N. America EMEA China Select Net Sales Detail Total Volume Currency 2Q'16 2Q'17 2Q'18 3
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Short Term Cash Deployment Investments ($MM) $2,000 Approximate cash uses ($MM): 2Q’18 YTD $1,669 Capital Spending $45 $120 $1,617 Dividends $110 $220 $1,500 Share Repurchases $460 $1,060 $1,182 $1,083 Strong cash position remains; continued focus o
Slide 10: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: John Bruno phone: +1.412.434.3466 email: jbruno@ppg.com Media: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com
Slide 11: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 2nd Quarter Reporting Period $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Second Quarter 2018 Net Income Attributable to PPG as Reported $ 371 $ 1.51 $ -- -- $ 371 $ 1.51 Costs related to a
Slide 12: Regulation G Reconciliation
Regulation G Reconciliation Three Months Ended June 30, 2018 Income Before Income Taxes Tax Expense Effective Tax Rate Effective tax rate, continuing operations $479 $104 21.7% Costs related to a customer assortment change 10 2 24.3% Business restructuring charge 83 20 24.2% Accelerated depreciation