PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q1 2006 Earnings Presentation
15 slides from PPG Industries's earnings presentation, Apr 20, 2006
Slide 1: First Quarter 2006 Financial Results
1 PPG Industries, Inc. First Quarter 2006 Financial Results April 20, 2006 Information contained in this presentation is current as of April 20, 2006 and will not be updated.
Slide 2: Forward-Looking Statements
2 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 and financial performance. These matters involve risks and uncertainties that may
Slide 3: First Quarter 2006 Financial Results - William H. Hernandez, CFO
3 PPG Industries, Inc. First Quarter 2006 Financial Results April 20, 2006 William H. Hernandez Sr. VP & CFO
Slide 4: First Quarter Comparisons
4 First Quarter Comparisons 2006 2005 Million EPS Million EPS Net Income As Reported $ 184 $ 1.11 $ 95 $ 0.55 Net Income Includes the Following Charges: Asbestos Settlement - Net 6 0.03 5 0.03 Restructuring/Severance Costs 23 0.14 - - Adverse Legal Settlement - - 91 0.52 Adjusted Net Income $ 213 $
Slide 5: Market Indicators
5 Market Indicators 1Q 2006 (change from 1Q 2005) U.S. Real GDP* 4.4% U.S. Industrial Production* 3.2% EEC Real GDP* 1.7% China Real GDP* 9.9% N.A. Vehicle Production 2.3% N.A. Light Vehicle Sales 2.1% Western Europe Auto Production* 4% Western Europe, New Registrations* 3% U.S. Housing Starts* 2% U
Slide 6: 2006 Key Topics
6 2006 Key Topics • Economy • Inflation Energy Raw Materials
Slide 7: Approx. Trends in Sales – Total PPG
7 Approx. Trends in Sales – Total PPG 1Q 2006 (change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other 6% 3% 4% -2% 1%
Slide 8: Quarterly Volume Change – Total PPG
8 Quarterly Volume Change – Total PPG From Prior Year Quarter 10 N.A. Asia U.S. 8 Decline Industrial Decline Hurricanes 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 9: Quarterly Volume Change – Europe
9 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 10: Quarterly Volume Change – Asia
10 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 11: Approx. Trends in Sales – Coatings
11 Approx. Trends in Sales – Coatings 1Q 2006 (change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other COATINGS 8% 6% 3% -2% 1% Automotive OEM 5% 8% Refinish -3% -5% Industrial 10% 6% Aerospace 14% 15% Architectural 27% 15% Packaging 6% 7%
Slide 12: Approx. Trends in Sales - Glass
12 Approx. Trends in Sales - Glass 1Q 2006 (change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other GLASS 2% 2% 0% -1% 1% Automotive OEM -1% 1% Automotive ARG 0% 0% Insurance & Services 0% 1% Performance Glazings 13% 6% Fiber Glass -3% 2%
Slide 13: Approx. Trends in Sales – Chemicals
13 Approx. Trends in Sales – Chemicals 1Q 2006 (change from 1Q 2005) Sales Volume/Mix Price Curr. Acq./Other CHEMICALS 4% -4% 8% -1% 1% Commodity 1% -11% Specialty 11% 11%
Slide 14: Use of Cash
14 Use of Cash • Prudently fund businesses • Dividends • Manage debt • Pension & asbestos settlement • Related acquisitions • Repurchase stock
Slide 15: Conclusion
15 Conclusion Thank you for your interest in PPG Industries, Inc. For additional information contact: Investors Vincent J. Morales (412) 434-3740 Media Jeffrey A. Worden (412) 434-3046