PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q2 2019 Earnings Presentation
11 slides from PPG Industries's earnings presentation, Jul 18, 2019
Slide 1: PPG - Second Quarter 2019 Financial Results
PPG - Second Quarter 2019 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 July 18, 2019
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: Second Quarter 2019 Financial Highlights
Second Quarter 2019 Financial Highlights Net sales up about 1% in constant currencies • Selling prices increased by more than 2%, marking nine consecutive quarters of higher pricing; both reporting segments contributed similar price gains • Sales from recent acquisitions of SEM, Whitford and Hemmelr
Slide 4: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales* ($ in millions) +2.3% -3.8% $4,250 4,131 -3.2% +2.2% 4,024 $4,000 $3,750 2Q'18 Price Volume Currency Acq./Div. 2Q'19 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to Q2’17) 7% 5.9% 10% 8% 4.8% 5% 4.1% 6% 2.9
Slide 5: Second Quarter Net Sales Volumes
Second 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 Above Market Above Market At Market Automotive Refinish Below Market At Market At
Slide 6: Performance Coatings
Performance Coatings Coveted PPG products available at ALL leading DIY centers in the U.S. $MM (USD) 2Q19 2Q18 Chg % Net Sales 2,430 2,498 -68 -3% Income 425 428 -3 -1% Margin % 17.5% 17.1% +0.4% -- LIQUID NAILS® One of the most HOMAX® brand products make tough Select Net Sales Detail Total Price Cu
Slide 7: Industrial Coatings
Industrial Coatings 7.5 Regional Auto Production Forecast (million units) $MM (USD) 2Q19 2Q18 Chg % 6.5 Net Sales 1,594 1,633 -39 -2% 5.5 Income 235 223 +12 +5% 4.5 Margin % 14.7% 13.7% +1.0% -- 3.5 N. America EMEA China Select Net Sales Detail Total Price Currency 2Q'17 2Q'18 2Q'19 3Q'17 3Q'18 3Q'1
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Short-Term Second Quarter 2019 Activity Investments ($MM) $2,000 2Q 2019 approximate cash uses: • Capital Spending $85MM $1,669 $1,617 • Dividends $115MM $1,500 2Q operating cash flow of ~$550MM First six months of 2019 +$350MM compared to prior y
Slide 9: Third Quarter 2019 Financial Assumptions
Third Quarter 2019 Financial Assumptions Category Projection ($ in millions unless stated otherwise) Cost savings programs (incremental) • $17 - $20 Raw material costs (Y-O-Y) • Continued moderation Corporate & legacy expenses (total) • $45 - $50 Unfavorable foreign currency (Y-O-Y) • $30 - $50 Sale
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: [email protected] Media: Mark Silvey phone: +1.412.434.3046 email: [email protected]
Slide 11: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 2nd Quarter Reporting Period $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Second Quarter 2019 Net Income Attributable to PPG as Reported $ 270 $ 1.13 $ 2 $ 0.01 $ 272 $ 1.14 Business restruc