PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q2 2006 Earnings Presentation
16 slides from PPG Industries's earnings presentation, Jul 20, 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 and financial performance. These matters involve risks and uncertainties that may
Slide 2: Second Quarter 2006 Financial Results
2 PPG Industries, Inc. Second Quarter 2006 Financial Results July 20, 2006 William H. Hernandez Sr. VP & CFO Information contained in this presentation is current as of July 20, 2006 and will not be updated.
Slide 3: Business Segment Sales
3 Business Segment Sales 2nd Quarter Year-to-Date Sales 2006 2005 Change 2006 2005 Change Coatings $ 1,579 $ 1,450 $ 129 $ 3,019 $ 2,782 $ 237 Chemicals 634 625 9 1,267 1,232 35 Glass 611 581 30 1,176 1,135 41 Total PPG $ 2,824 $ 2,656 $ 168 $ 5,462 $ 5,149 $ 313
Slide 4: Second Quarter Comparisons
4 Second Quarter Comparisons 2006 2005 Million EPS Million EPS Net Income As Reported $ 280 $ 1.68 $ 231 $ 1.34 Net Income Includes the Following Charges (Earnings): Asbestos Settlement - Net 4 0.03 2 0.01 Net Legal and Insurance Matters (12) (0.07) - - Debt Refinancing Costs - - 12 0.07 Adjusted Ne
Slide 5: Business Segment Earnings
5 Business Segment Earnings 2nd Quarter Year-to-Date 2006 2005 Change 2006 2005 Change Operating Earnings Coatings $ 272 $ 210 $ 62 $ 439 $ 219 $ 220 Chemicals 137 152 (15) 265 307 (42) Glass 48 52 (4) 80 93 (13) $ 457 $ 414 $ 43 $ 784 $ 619 $ 165 Operating Margins Coatings 17.2% 14.5% 14.5% 7.8% Ch
Slide 6: Market Indicators
6 Market Indicators 2Q 2006 (change from 2Q 2005) U.S. Real GDP* 3.4% U.S. Industrial Production* 4.6% EEC Real GDP* 2.4% China Real GDP* 10.9% N.A. Vehicle Production -3.9% N.A. Light Vehicle Sales -2.4% Western Europe Auto Production* -3.7% Western Europe, New Registrations* -1.0% U.S. Housing Sta
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 2Q 2006 (change from 2Q 2005) Sales Volume/Mix Price Curr. Acq./Other 6% 2% 2% 1% 1%
Slide 9: Quarterly Volume Change – Total PPG
9 Quarterly Volume Change – Total PPG From Prior Year Quarter 10 Asia N.A. Industrial U.S. 8 Decline 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 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 2Q 2006 (change from 2Q 2005) Sales Volume/Mix Price Curr. Acq./Other COATINGS 9% 4% 3% 1% 1% Automotive OEM 3% 2% Refinish 8% 3% Industrial 11% 4% Aerospace 9% 7% Architectural 16% 5% Packaging 8% 6%
Slide 13: Approx. Trends in Sales – Glass
13 Approx. Trends in Sales - Glass 2Q 2006 (change from 2Q 2005) Sales Volume/Mix Price Curr. Acq./Other GLASS 5% 3% 0% 0% 2% Automotive OEM -4% -2% Automotive ARG 11% 3% Insurance & Services -7% -7% Fiber Glass 3% 4% Performance Glazings 15% 10%
Slide 14: Approx. Trends in Sales – Chemicals
14 Approx. Trends in Sales – Chemicals 2Q 2006 (change from 2Q 2005) Sales Volume/Mix Price Curr. Acq./Other CHEMICALS 1% -3% 3% 0% 1% Commodity -8% -13% Specialty 19% 14%
Slide 15: Use of Cash
15 Use of Cash • Prudently fund businesses • Dividends • Manage debt • Pension & 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 Vincent J. Morales (412) 434-3740 Media Jeffrey A. Worden (412) 434-3046