Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q3 2016 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Oct 20, 2016
Slide 1: PPG – Third Quarter 2016 Financial Results
PPG – Third Quarter 2016 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Frank S. Sklarsky, Executive Vice President and Chief Financial Officer Vincent J. Morales, Vice President, Finance Scott A. Minder, Director, Investor Relations Information current as of October 20,
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: Third Quarter 2016 Financial Highlights
Third Quarter 2016 Financial Highlights Sales increase of more than 3 percent in local currencies • Aggregate sales volumes increased 1.6 percent year-over-year, led by solid growth in Asia-Pacific • Acquisition-related sales contributed about 2 percent driven by MetoKote and prior year acquisitions
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales* $4,000 3,725 1.6% -1.7% +2.4% 3,789 -0.5% $3,750 $3,500 $3,250 ($ in millions) 3Q'15 Price Volume Currency Acq./Div. 3Q'16 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q1’15
Slide 5: Third Quarter Coatings Net Sales Volumes
Third 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 Above Market At Market At Market At Market Automotive Refinish At Market At Market Abov
Slide 6: PPG Third Quarter Earnings Per Share
PPG Third Quarter Earnings Per Share Adjusted Earnings Per Diluted Share* Third Quarter Comments $1.75 Reporting segment updates included on 1.56 succeeding slides. Other factors included in 1.54 segment results: $1.50 Acquisition-related income 1.35 Ongoing cost management $1.25 Restructuri
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 3Q15 3Q16 Chg % PPG’s Branding Initiatives Net Sales 2,240 2,223 -17 -1% Income 379 368 -11 -3% Margin % 16.9% 16.6% -- -- Select Net Sales Detail Total Volume Currency 3Q Y-O-Y Change -1% 1% -2% Third Quarter (YOY): Fourth Quarter 2016 Outlook: Lower segment volumes
Slide 8: Industrial Coatings
Industrial Coatings Regional Auto Production Forecast (million units) $MM (USD) 3Q15 3Q16 Chg % 7.0 Net Sales 1,354 1,437 83 +6% 6.0 Income 241 249 8 +3% 5.0 Margin % 17.8% 17.3% -- -- 4.0 Select Net Sales Detail Total Volume Currency 3.0 N. America EMEA China 3Q Y-O-Y Change +6% +4% -1% Q3'14 Q3'15
Slide 9: Glass
Glass $MM (USD) 3Q15 3Q16 Chg % 20 Glass Segment Income ($MM) (North American & European Fiber Glass business only) 15 Net Sales 131 129 -2 -2% 15 14 12 11 11 Income 6 12 6 +100% 10 10 Margin % 4.6% 9.3% -- -- 6 5 Select Net Sales Detail Total Volume Currency 3Q Y-O-Y Change 0 -2% +1% -2% Q1'15 Q2 Q
Slide 10: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Short Term 3Q 2016 and Year-to-Date Activity Investments ($MM) 3Q 2016 and YTD approximate cash uses: $3,500 Capital Spending $100MM; YTD $260MM $3,038 Dividends $105MM; YTD $310MM $3,000 Share repurchases $250MM; YTD $400MM Gross (pre-tax) Pit
Slide 11: Summary
Summary Third quarter financial performance • Sales up more than 3 percent in local currencies • Sales volumes increased by 1.6 percent led by Asia-Pacific; Europe and the U.S. & Canada region flat • Adjusted earnings per share of $1.56*, up one percent versus prior year; including negative impact o
Slide 12: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Contact Information: Investors: Scott Minder - (412) 434-3466 Media: Mark Silvey - (412) 434-3046
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 3rd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Third Quarter 2016 Net (Loss)/Income Attributable to PPG as Reported $ (201) $ (0.75) $ 17 $ 0.06 $ (184) $ (0.69) Pension settlement charges
Slide 14: Regulation G Reconciliation
Regulation G Reconciliation 3rd Quarter Reporting Period (Loss) Income Before Income Tax (Benefit) Three Months Ended September 30, 2016 Effective Tax Rate Taxes Expense Effective tax rate, continuing operations $(413) $(217) 52.5% Pension settlement charges 968 352 36.4% Adjusted effective tax rate