PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2017 Earnings Presentation
12 slides from PPG Industries's earnings presentation, Oct 19, 2017
Slide 1: PPG – Third Quarter 2017 Financial Results
PPG – Third Quarter 2017 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 October 19, 2017
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: Third Quarter 2017 Financial Highlights
Third Quarter 2017 Financial Highlights Net sales of nearly $3.8 billion, up more than 3 percent year-over-year • July and August sales volume growth was about 1.5% prior to the natural disasters; higher than first half sales volume growth rate • Selling prices improved slightly year-over-year and s
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales* $4,000 +1.8% +0.6% 3,776 $3,750 3,660 +0.1% +0.6% 1 $3,500 $3,250 ($ in millions) 3Q'16 Price Volume Currency Acq./Div. 3Q'17 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q3
Slide 5: Third Quarter Net Sales Volumes
Third 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 At Market Above Market Above Market At Market Automotive Refinish Above Market At Market At Mark
Slide 6: PPG Third Quarter Adjusted Earnings Per Diluted Share
PPG Third Quarter Adjusted Earnings Per Diluted Share* $2.00 Impacted by natural disasters Third Quarter 2017 Comments $1.75 Reporting segment updates included on 1.53 1.52 1.52 succeeding slides. Aggregate items $1.50 embedded in segment reviews: 1.33 • Significant raw material cost inflation has
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 3Q16 3Q17 Chg % Net Sales 2,223 2,290 +67 +3% Income 368 365 -3 -1% Margin % 16.6% 15.9% -- -- Select Net Sales Detail Total Volume Currency 3Q Y-O-Y Change +3% -1% +2% PPG Timeless® introduced at The Home Depot® Fourth Quarter 2017 Outlook: Third Quarter (Y-O-Y): Lo
Slide 8: Industrial Coatings
Industrial Coatings 8.5 Regional Auto Production Forecast (million units) $MM (USD) 3Q16 3Q17 Chg % 7.5 Net Sales 1,437 1,486 +49 +3% 6.5 5.5 Income 249 223 -26 -10% 4.5 Margin % 17.3% 15.0% -- -- 3.5 Select Net Sales Detail Total Volume Currency N. America EMEA China 3Q'15 3Q'16 3Q'17 4Q'15 4Q'16 4
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Short Term Cash Deployment Investments ($MM) $3,500 Approximate cash uses ($MM): 3Q’17 YTD $3,038 $3,000 Capital Spending $75 $210 Dividends $115 $320 $2,500 $2,328 Acquisitions $5 $170 $2,249 Share Repurchases $250 $415 $2,000 Strong cash position r
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 3rd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Third Quarter 2017 Net Income Attributable to PPG as Reported $ 392 $ 1.52 $ 217 $ 0.84 $ 609 $ 2.36 Third Quarter 2016 Net (Loss)/Income Attr
Slide 12: Regulation G Reconciliation
Regulation G Reconciliation Three Months Ended September 30, 2017 Income Before Income Taxes Tax Expense Effective Tax Rate Effective tax rate, continuing operations $521 $123 23.6% (Loss) Income Before Tax (Benefit) Three Months Ended September 30, 2016 Effective Tax Rate Income Taxes Expense Effec