PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2015 Earnings Presentation
14 slides from PPG Industries's earnings presentation, Oct 15, 2015
Slide 1: PPG Industries, Inc. – Third Quarter 2015 Financial Results
PPG Industries, Inc. – Third Quarter 2015 Financial Results Michael H. McGarry, President and Chief Executive Officer Frank S. Sklarsky, Executive Vice President and Chief Financial Officer Vincent J. Morales, Vice President Investor Relations and Treasurer Information current as of October 15, 2015
Slide 2: Forward-Looking Statements
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 within the meaning of Section 27A of the Securities Act of 1933
Slide 3: Third Quarter 2015 Financial Highlights
Third Quarter 2015 Financial Highlights • Continued, strong earnings growth; cost focus remains Record third quarter adjusted earnings per diluted share from continuing operations up 14 percent vs. the prior year, more than offsetting $0.12 (~$45 million pre-tax) of unfavorable foreign currency.
Slide 4: PPG Quarterly Net Sales
PPG Quarterly Net Sales $4,000 3,935 +0% +7% 3,872 -1% $3,750 $3,500 -8% $3,250 ($ in millions) 3Q'14 Price Volume Currency Acq./Div. 3Q'15 PPG Y-O-Y Volume Trends Dollar/Euro Conversion Rate (excludes price, currency and acquisition impacts) (Quarter rate = 3-month average) 1.45 6% 4.7% 1.40 1.33 4
Slide 5: Net Sales Volume Trends – Coatings Segments
Net Sales Volume Trends – Coatings Segments PPG Coatings Y-O-Y Regional Volume Trends 3Q 2015 Commentary Y-O-Y (versus 3Q 2014): (excludes price, currency and acquisition impacts) U.S. & Canada: 2Q’14 4% Sales volumes declined versus strengthening prior year quarter. 3Q’14 5% U.S. & Canada 4Q’14 5%
Slide 6: PPG Third Quarter Earnings Per Share
PPG Third Quarter Earnings Per Share Adjusted Earnings Per Diluted Share* Third Quarter Comments $2.00 CAGR – 23% Reporting segment updates included on succeeding slides. Aggregate items embedded in segment reviews: 1.61 Acquisition-related income benefits $1.50 1.41 Unfavorable foreign curren
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 3Q14 3Q15 Chg % 30% Segment Sales Seasonality (excluding foreign currency) Net Sales 2,257 2,240 -17 -1% Income 345 379 34 10% 25% Margin % 15.3% 16.9% -- -- Select Net Sales Detail Total Volume Currency Percent of full-year revenue 3Q Y-O-Y Change 20% -1% -3% -8% Q1 Q
Slide 8: Industrial Coatings
Industrial Coatings $MM (USD) 6.5 Regional Auto Production Forecast (million units) 3Q14 3Q15 Chg % 6.0 Net Sales 1,395 1,354 -41 -3% 5.5 5.0 Income 240 241 1 -- 4.5 Margin % 17.2% 17.8% -- -- 4.0 3.5 Select Net Sales Detail Total Volume Currency 3.0 N. America EMEA China 3Q Y-O-Y Change -3% +2% -8%
Slide 9: Glass
Glass $MM (USD) 3Q14 3Q15 Chg % 50 Glass Segment Income ($MM) 40 37 Net Sales 283 278 -5 -2% 33 33 32 30 Income -1% 30 33 32 -1 Margin % 11.7% 11.5% -- -- 20 11 10 Select Net Sales Detail Total Volume Currency 4 3Q Y-O-Y Change 0 -2% +3% -3% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Third Quarter (Y
Slide 10: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Short Term Investments ($MM) Third Quarter 2015 and Year-to-Date Activity $3,500 3Q 2015 and YTD approximate cash uses: $3,038 $3,000 Capital Spending $105MM; YTD $265MM Lower full-year capital spending projection now 3% of sales $2,500 $2,249 Di
Slide 11: Third Quarter Summary
Third Quarter Summary Record third quarter financial performance Adjusted third quarter record earnings per diluted share up 14 percent despite unfavorable foreign currency impacts. Record coatings segment earnings show benefit from operational and cost focus. Sales up 6 percent in local cur
Slide 12: PPG Path Forward
PPG Path Forward Customer-Focused Continue to invest in customer-driven coatings innovation/technology – Extend innovation leadership during coatings technology shifts. Increase customer intimacy and service capabilities to build long-lasting and mutually beneficial relationships aimed at deli
Slide 13: Additional Materials and Appendix
Additional Materials and Appendix www.ppg.com Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: Scott Minder - (412) 434-3466 Media: Mark Silvey - (412) 434-3046
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 3rd Quarter Reporting Period Continuing Discontinued Operations Operations Total PPG Net Net Income EPS Income EPS Net Income EPS Year 2015 Net Income Attributable to PPG as Reported $ 433 $ 1.59 -- -- $ 433 $ 1.59 Transaction-related costs 1 -- -- -- 1 -- Pension windup