Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2017 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Apr 20, 2017
Slide 1: PPG - First Quarter 2017 Financial Results
PPG - First Quarter 2017 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer Scott A. Minder, Director Investor Relations Information current as of April 20, 2017
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: First Quarter 2017 Financial Highlights
First Quarter 2017 Financial Highlights Net sales increased one percent; improved nearly 3 percent in local currencies • Aggregate Coatings sales volumes increased 2 percent year-over-year, led by more than 5 percent growth in the Industrial Coatings segment • Acquisition-related sales increased 2 p
Slide 4: PPG First Quarter Net Sales
PPG First Quarter Net Sales* $3,750 +1.9% -1.8% Flat with +0.7% 3,569 3,544 prior year $3,500 $3,250 ($ in millions) 1Q'16 Price Volume Currency Acq./Div. 1Q'17 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed
Slide 5: First Quarter Coatings Net Sales Volumes
First Quarter Coatings 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 At Market Above Market At Market At Market Automotive Refinish Above Market At Market A
Slide 6: PPG First Quarter Adjusted Earnings Per Diluted Share
PPG First Quarter Adjusted Earnings Per Diluted Share* First Quarter Comments $1.50 Reporting segment updates included on 1.35 succeeding slides. Aggregate items 1.27 embedded in segment reviews: • Income leverage from sales volume growth 1.13 • Continued cost management 1.00 • Acquisition-related
Slide 7: Performance Coatings
Performance Coatings PPG-Supplied Waterborne Refinish Paint Shops $MM (USD) Technology and Sustainability 1Q16 1Q17 Chg % Net Sales 2,039 2,017 -22 -1% Income 279 285 6 +2% Margin % 13.7% 14.1% -- -- CAGR = 13% Select Net Sales Detail Total Volume Currency 1Q Y-O-Y Change -1% n/c -2% 2008 2009 2010
Slide 8: Industrial Coatings
Industrial Coatings 7.0 $MM (USD) Regional Auto Production Forecast (million units) 1Q16 1Q17 Chg % 6.5 6.0 Net Sales 1,372 1,469 97 +7% 5.5 Income 265 273 8 +3% 5.0 4.5 Margin % 19.3% 18.6% -- -- 4.0 Select Net Sales Detail Currency 3.5 Total Volume N. America EMEA China 1Q Y-O-Y Change +7% +5% -1%
Slide 9: Glass
Glass Fiber glass locations & end-use markets $MM (USD) 1Q16 1Q17 Chg % Net Sales 133 83 -50 -38% Primary end-use markets • Construction Income 14 9 -5 -36% • Energy • Industrial Margin % 10.5% 10.8% -- -- • Infrastructure • Transportation Select Net Sales Detail Total Volume Currency 1Q Y-O-Y Chang
Slide 10: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Short Term First Quarter 2017 Activity Investments ($MM) 1Q 2017 approximate cash uses: $3,500 • Capital Spending $65MM $3,039 $3,000 • Dividends $105MM • Share Repurchases $165MM $2,500 $2,380 • Acquisitions of Chinese automotive refinish business & R
Slide 11: First Quarter Summary
First Quarter Summary Financial performance • Adjusted earnings per diluted share from continuing operations up more than 6 percent year-over- year, including unfavorable impact from foreign currency translation • Sales in local currencies up nearly 3 percent; sales volumes grew by about 2 percent
Slide 12: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. Contact Information: Investors: Scott Minder - (412) 434-3466 Media: Mark Silvey - (412) 434-3046
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 1st Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS First Quarter 2017 Net Income Attributable to PPG as Reported $ 334 $ 1.29 $ -- $ -- $ 334 $ 1.29 Transaction-related costs 3 0.01 -- -- 3 0.0
Slide 14: Regulation G Reconciliation
Regulation G Reconciliation Income Before Income Tax (Benefit) Three Months Ended March 31, 2017 Effective Tax Rate Taxes Expense Effective tax rate, continuing operations $448 $109 24.3% Transaction-related costs 4 1 37.8% Pension settlement charge 22 8 37.8% Adjusted effective tax rate, continuing