PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2019 Earnings Presentation
11 slides from PPG Industries's earnings presentation, Oct 17, 2019
Slide 1: PPG – Third Quarter 2019 Financial Results
PPG – Third 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 October 17, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Fo
Slide 3: Third Quarter 2019 Financial Highlights
Third Quarter 2019 Financial Highlights Net sales up approximately 2% in constant currencies • Selling prices increased by 2.6%, marking 10 consecutive quarters of higher pricing and the sixth consecutive quarter with increases of more than 2% • Sales from acquisitions were up more than 2%: SEM, Whi
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales ($ in millions) $4,000 +2.6% -2.7% 3,817 -2.0% +2.5% 3,826 $3,750 $3,500 3Q'18 Price Volume Currency Acq./Div. 3Q'19 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to Q3’17) 7% 5.9% 8% 4.8% 6% 5% 4.1% 4% 2.9% 2
Slide 5: Third Quarter Sales Volumes
Third Quarter 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 At Market Above Market At Marke
Slide 6: Performance Coatings
Performance Coatings Global Airplane Production Forecast Global Aircraft Builds $MM (USD) 3Q19 3Q18 Chg % 2,500 Net Sales 2,313 2,289 +24 +1% 2,000 Income 380 331 +49 +15% 1,500 Builds 1,000 Margin % 16.4% 14.5% +1.9% -- 500 Select Net Sales Detail Total Acquisition Currency 0 2017 2018 2019e 2020e
Slide 7: Industrial Coatings
Industrial Coatings Regional Auto Production Forecast (million units) $MM (USD) 3Q19 3Q18 Chg % 8.5 7.5 Net Sales 1,513 1,528 -15 -1% 6.5 Income 206 169 +37 +22% 5.5 4.5 Margin % 13.6% 11.1% +2.5% -- 3.5 Select Net Sales Detail Acquisition Currency N. America EMEA China Total 3Q Y-O-Y Change 3Q'17 3
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Short Term Cash Deployment Investments (~$MM) $2,500 Approximate cash uses ($MM): $2,300 3Q’19 YTD Capital Spending $90 $225 $2,000 Dividends $120 $350 Share Repurchases $0 $175 $1,500 $1,500 $1,400 Operating cash flow of ~$1.3 billion First nine m
Slide 9: Fourth Quarter 2019 Financial Assumptions
Fourth Quarter 2019 Financial Assumptions Category Projection ($ 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) • $70 - $90 Sal
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 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 2019 Net Income Attributable to PPG as Reported $ 366 $ 1.54 $ 1 $ -- $ 367 $ 1.54 Environmental remed