Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2019 Earnings Presentation
11 slides from Ppg Industries's earnings presentation, Apr 18, 2019
Slide 1: First Quarter 2019 Financial Results
First Quarter 2019 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 1 Information current as of April 18, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and
Slide 3: First Quarter 2019 Financial Highlights
First Quarter 2019 Financial Highlights Net sales flat with prior year in constant currency • Net sales down approximately 4 percent, including significant unfavorable foreign currency translation impacts of more than 4 percent, or nearly $165 million • Sales volumes unfavorable versus the prior yea
Slide 4: PPG First Quarter Net Sales
PPG First Quarter Net Sales* ($ in millions) $4,000 +2.6% -3.1% 3,781 -4.3% $3,750 +0.7% 3,624 $3,500 $3,250 1Q'18 Price Volume Currency Acq./Div. 1Q'19 PPG Y-O-Y Volume Trends Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q1’17)
Slide 5: First Quarter Net Sales Volumes
First 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 Above Market Above Market Above Market Automotive Refinish At Market Below Market A
Slide 6: Performance Coatings
Performance Coatings PPG Supplied Waterborne Refinish Paint Shops Technology and Sustainability $MM (USD) 1Q19 1Q18 Chg % Net Sales 2,108 2,160 -52 -2% CAGR = 5% Income 297 280 +17 +6% Margin % 14.1% 13.0% +1.1% -- Select Net Sales Detail Total Volume Currency '16 '17 '18 1Q Y-O-Y Change -2% -2% -4%
Slide 7: Industrial Coatings
Industrial Coatings 7.5 7.0 Regional Auto Production Forecast (million units) $MM (USD) 1Q19 1Q18 Chg % 6.5 6.0 Net Sales 1,516 1,621 -105 -6% 5.5 Income 218 239 -21 -9% 5.0 4.5 Margin % 14.4% 14.7% -0.3% -- 4.0 3.5 Select Net Sales Detail Total Volume Currency N. America EMEA China Q1'17 Q1'18 Q1'1
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Short-Term First Quarter 2019 Activity Investments ($MM) 1Q 2019 approximate cash uses: $1,500 $1,389 $1,404 • Capital Spending $50MM • Dividends $110MM • Share Repurchases $175MM $1,030 $1,000 Share repurchases during the quarter were completed to o
Slide 9: Second Quarter 2019 Financial Assumptions
Second Quarter 2019 Financial Assumptions Category Projection ($ in millions unless stated otherwise) • Increasing at low-single-digit Raw material costs (Y-O-Y) percentage Unfavorable foreign currency (Y-O-Y) • $130 - $150 Sales Based on current rates • $15 - $20 Segment expense Corporate & legacy
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 $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS First Quarter 2019 Net Income Attributable to PPG as Reported $ 312 $ 1.31 $ -- $ -- $ 312 $ 1.31 Acquisition-related costs 5 0.02 -- -- 5 0.02 E