PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q4 2006 Earnings Presentation
17 slides from PPG Industries's earnings presentation, Jan 18, 2007
Slide 1: Fourth Quarter 2006 Financial Results
1 PPG Industries, Inc. Fourth Quarter 2006 Financial Results January 18, 2007 William H. Hernandez Senior Vice President & Chief Financial Officer
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: Business Segment Sales
3 Business Segment Sales 4th Quarter Year-to-Date % % Sales 2006 2005 Change 2006 2005 Change Coatings $1,675 $1,388 21% $ 6,299 $ 5,566 13% Chemicals 585 569 3% 2,485 2,398 4% Glass 513 548 -6% 2,253 2,237 1% Total PPG $2,773 $2,505 11% $ 11,037 $ 10,201 8%
Slide 4: Quarterly Volume Change – Total PPG
4 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 5: Quarterly Volume Change – Europe
5 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 6: Quarterly Volume Change – Asia
6 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 7: Fourth Quarter Comparisons
7 Fourth Quarter Comparisons 2006 2005 Million EPS Million EPS Net Income As Reported $ 157 $ 0.94 $ 113 $ 0.68 Net Income Includes the Following Charges: Asbestos Settlement - Net 3 0.02 3 0.02 Non-Cash Asset Impairments - - 17 0.10 Direct Hurricane Costs - - 10 0.06 Adjusted $ 160 $ 0.96 $ 143 $ 0
Slide 8: Full Year Comparisons
8 Full Year Comparisons 2006 2005 Million EPS Million EPS Net Income As Reported $ 711 $ 4.27 $ 596 $ 3.49 Net Income Includes the Following Charges: Asbestos Settlement - Net 17 0.10 13 0.08 Legal Settlements 26 0.15 128 0.74 Insurance Recoveries (24) (0.14) (11) (0.06) Environmental Remediation 10
Slide 9: Economic Indicators
9 Economic Indicators 4Q 2006 Year 2006 (change from 4Q (change from 2005) 2005) U.S. Real GDP* 2.7% 3.2% U.S. Industrial Production* 4.1% 4.3% EEC Real GDP* 2.9% 2.7% China Real GDP* 10% 10% N.A. Vehicle Production -7.6% -2.9% N.A. Light Vehicle Sales -1.1% -2.6% Western Europe Auto Production* 1%
Slide 10: Key Topics
10 Key Topics • Economy • Energy & Raw Materials • Legacy Issues • Business Performance
Slide 11: Business Segment Earnings
11 Business Segment Earnings 4th Quarter Year-to-Date 2006 2005 Change 2006 2005 Change Operating Earnings Coatings $ 205 $ 180 $ 25 $ 829 $ 609 $ 220 Chemicals 79 23 (1) 56 314 451 (137) Glass 20 (1) 21 140 56 84 $ 304 $ 202 (1) $ 102 $ 1,283 $ 1,116 $ 167 (1) Includes charges of $27 million for as
Slide 12: Approx. Trends in Outside Sales - Total PPG
12 Approx. Trends in Outside Sales - Total PPG 4Q 2006 (change from 4Q Sales Volume/Mix Price Curr. Acq./Other 2005) 11% 2% -1% 3% 7% Year 2006 (change from 2005) Sales Volume/Mix Price Curr. Acq./Other 8% 2% 2% 0% 4%
Slide 13: Approx. Trends in Outside Sales - Glass
13 Approx. Trends in Outside Sales - Glass 4Q 2006 (change from 4Q 2005) Sales Volume/Mix Price Curr. Acq./Other GLASS -6% -7% -1% 1% 1% Automotive OEM -12% -11% Automotive ARG -2% -9% Insurance & Services -22% -22% Fiber Glass -4% -5% Performance Glazings -3% -1% Year 2006 (change from 2005) Sales
Slide 14: Approx. Trends in Outside Sales - Chemicals
14 Approx. Trends in Outside Sales - Chemicals 4Q 2006 (chg. from 4Q 2005) Sales Volume/Mix Price Curr. Acq./Other CHEMICALS 3% 9% -10% 1% 3% Chlor-Alkali/Commodity -5% 11% Specialty 15% 6% Year 2006 (chg. from 2005) Sales Volume/Mix Price Curr. Acq./Other CHEMICALS 4% 1% 1% 0% 2% Chlor-Alkali/Commo
Slide 15: Approx. Trends in Outside Sales - Coatings
15 Approx. Trends in Outside Sales - Coatings 4Q 2006 (change from 4Q 2005) Sales Volume/Mix Price Curr. Acq./Other COATINGS 21% 3% 3% 4% 11% Automotive OEM 18% 5% Refinish 20% 3% Industrial 15% -3% Aerospace 38% 14% Architectural 27% -2% Packaging 19% 11% Year 2006 (change from 2005) Sales Volume/M
Slide 16: Uses of Cash
16 Uses of Cash • Prudently Fund Businesses • Dividends • Debt Pensions • Acquisitions • Stock Repurchase
Slide 17: For More Information
17 For More Information Thank you for your interest in PPG Industries, Inc. Investors Vincent J. Morales (412) 434-3740 Media Betsy Mallison Bialosky (412) 434-3046