PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2018 Earnings Presentation
11 slides from PPG Industries's earnings presentation, Oct 18, 2018
Slide 1: Third Quarter 2018 Financial Results
Third 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 1 Information current as of October 18, 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: Third Quarter 2018 Financial Highlights
Third Quarter 2018 Financial Highlights Net sales up more than 3 percent in constant currency • Sales were flat year-over-year, and increased about 2 percent excluding the previously announced customer assortment changes in U.S. architectural coatings • Selling prices increased more than 2 percent;
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales* $4,000 +2.3% 0.0% -2.2% 3,776 +1.1% 3,817 $3,750 $3,500 $3,250 ($ in millions) 3Q'17 Price Volume Currency Acq./Div. 3Q'18 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q2’16
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 Above Market At Market Above Market At Market Automotive Refinish Below Market Below Market At M
Slide 6: Performance Coatings
Performance Coatings Global Aerospace Growth Continues $MM (USD) 3Q18 3Q17 Chg % Net Sales 2,289 2,290 -1 0% Income 331 365 -34 -9% Margin % 14.4% 15.9% -1.5% -- Select Net Sales Detail Total Volume Currency 3Q Y-O-Y Change Source: Forecast International +0% -1% -2% Fourth Quarter 2018 Outlook: Thir
Slide 7: Industrial Coatings
Industrial Coatings 8.5 Regional Auto Production Forecast (million units) $MM (USD) 3Q18 3Q17 Chg % 7.5 6.5 Net Sales 1,528 1,486 +42 +3% 5.5 Income 169 225 -56 -25% 4.5 3.5 Margin % 11.1% 15.1% -4.0% -- N. America EMEA China Select Net Sales Detail Total Volume Currency 3Q'16 3Q'17 3Q'18 4Q'16 4Q'1
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Short Term Cash Deployment Investments (~$MM) $3,500 Approximate cash uses ($MM): 3Q’18 YTD $3,000 $3,000 Capital Spending $110 $230 Dividends $115 $340 $2,500 Share Repurchases $250 $1,300 $2,300 Strong balance sheet flexibility continues; $2,000 fo
Slide 9: Fourth Quarter Financial Assumptions
Fourth Quarter Financial Assumptions Category Projection ($ in millions unless stated otherwise) • Increasing at low end of mid-single- Raw material costs (Y-O-Y) digit percentages Freight and logistics costs (Y-O-Y) • Increasing by a mid-teen percentage Unfavorable foreign currency (Y-O-Y) • $50 -
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 $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Third Quarter 2018 Net Income Attributable to PPG as Reported $ 368 $ 1.51 $ 10 $ 0.04 $ 378 $ 1.55 Costs related to