PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2006 Earnings Presentation
16 slides from PPG Industries's earnings presentation, Oct 19, 2006
Slide 1: Forward-Looking Statements
1 PPG Industries, Inc. Forward-Looking Statements Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events or objectives and financial or operational performance or results. These matters
Slide 2: Third Quarter 2006 Financial Results
2 PPG Industries, Inc. Third Quarter 2006 Financial Results October 19, 2006 William H. Hernandez Sr. VP & CFO Information contained in this presentation is current as of October 19, 2006 and will not be updated.
Slide 3: Business Segment Sales
3 Business Segment Sales 3rd Quarter Year-to-Date % % Sales 2006 2005 Change 2006 2005 Change Coatings $ 1,605 $ 1,396 15% $ 4,624 $ 4,178 11% Chemicals 633 597 6% 1,900 1,829 4% Glass 564 554 2% 1,740 1,689 3% Total PPG $ 2,802 $ 2,547 10% $ 8,264 $ 7,696 7%
Slide 4: Third Quarter Comparisons
4 Third Quarter Comparisons 2006 2005 Million EPS Million EPS Net Income As Reported $ 90 $ 0.54 $ 157 $ 0.92 Net Income Includes the Following Charges (Earnings): Asbestos Settlement - Net $ 4 $ 0.02 $ 2 $ 0.02 Legacy Environmental Charge 106 0.64 Refinish Antitrust Legal Settlement 14 0.08 Other L
Slide 5: Business Segment Earnings
5 Business Segment Earnings 3rd Quarter 2006 2005 Change Operating Earnings Coatings $ 185 $ 210 $ (25) Chemicals (30) 121 (151) Glass 40 (36) 76 $ 195 (1) $ 295 (2) $ (100) (1) Includes charges of $35 million for legal settlements. Includes charges of $173 million for legacy environmental costs. In
Slide 6: Market Indicators
6 Market Indicators 3Q 2006 (change from 3Q 2005) U.S. Real GDP* 2.9% U.S. Industrial Production* 4.9% EEC Real GDP* 2.2% China Real GDP* 9.8% N.A. Vehicle Production -8.4% N.A. Light Vehicle Sales -6.4% Western Europe Auto Production* -3.6% Western Europe, New Registrations* -3.1% U.S. Housing Star
Slide 7: 2006 Key Topics and Outlook
7 2006 Key Topics and Outlook • Economy • Inflation Energy Raw Materials
Slide 8: Approx. Trends in Sales – Total PPG
8 Approx. Trends in Sales – Total PPG 3Q 2006 (change from 3Q 2005) Sales Volume/Mix Price Curr. Acq./Other 10% 1% 2% 2% 5%
Slide 9: Quarterly Volume Change – Total PPG
9 Quarterly Volume Change – Total PPG From Prior Year Quarter 10 Asia N.A. 8 Industrial U.S. Decline Hurricanes Decline 6 Percent 4 2 0 -2 -4 -6 -8 1998 1999 2000 2001 2002 2003 2004 2005 2006 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Slide 10: Quarterly Volume Change – Europe
10 Quarterly Volume Change – Europe From Prior Year Quarter 20 15 10 Percent 5 0 -5 -10 -15 2000 2001 2002 2003 2004 2005 2006 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Slide 11: Quarterly Volume Change – Asia
11 Quarterly Volume Change – Asia From Prior Year Quarter 25 20 15 Percent 10 5 0 -5 2000 2001 2002 2003 2004 2005 2006 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Slide 12: Approx. Trends in Sales – Coatings
12 Approx. Trends in Sales – Coatings 3Q 2006 (change from 3Q 2005) Sales Volume/Mix Price Curr. Acq./Other COATINGS 15% 1% 3% 2% 9% Automotive OEM 10% -1% Refinish 12% -2% Industrial 16% 1% Aerospace 11% 4% Architectural 26% 2% Packaging 17% 12%
Slide 13: Approx. Trends in Sales - Glass
13 Approx. Trends in Sales - Glass 3Q 2006 (change from 3Q 2005) Sales Volume/Mix Price Curr. Acq./Other GLASS 2% 0% -1% 1% 2% Automotive OEM -8% -7% Automotive ARG 6% 1% Insurance & Services -11% -11% Fiber Glass 6% 5% Performance Glazings 6% 5%
Slide 14: Approx. Trends in Sales – Chemicals
14 Approx. Trends in Sales – Chemicals 3Q 2006 (change from 3Q 2005) Sales Volume/Mix Price Curr. Acq./Other CHEMICALS 6% 2% 1% 1% 2% Commodity 0% -1% Specialty 17% 10%
Slide 15: Use of Cash
15 Use of Cash • Prudently fund businesses • Dividends • Manage debt • Pension funding & asbestos settlement • Related acquisitions • Repurchase stock
Slide 16: Conclusion
16 Conclusion Thank you for your interest in PPG Industries, Inc. For additional information contact: Investors Vince Morales (412) 434-3740 Media Jack Maurer (412) 434-2181