Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q2 2016 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Jul 21, 2016
Slide 1: PPG – Second Quarter 2016 Financial Results
PPG – Second Quarter 2016 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 Finance Scott A. Minder, Director Investor Relations Information current as of July 21, 201
Slide 2: Forward Looking Statement
Forward Looking Statement 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 f
Slide 3: Second Quarter 2016 Financial Highlights
Second Quarter 2016 Financial Highlights Local currency sales growth continues • Aggregate sales volumes were flat year-over-year, with solid growth in EMEA and Asia-Pacific offset by lower volumes in the U.S. and Canada • Acquisition-related sales contributed about 2 percent related to businesses a
Slide 4: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales $4,250 n/c n/c -2.4% +1.6% 4,100 4,064 $4,000 $3,750 $3,500 $3,250 ($ in millions) 2Q'15 Price Volume Currency Acq./Div. 2Q'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’
Slide 5: Second Quarter Coatings Net Sales Volumes
Second 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 At Market At Market Above Market Automotive Refinish Above Market At Market
Slide 6: PPG Second Quarter Earnings Per Share
PPG Second Quarter Earnings Per Share Adjusted Earnings Per Diluted Share* Second Quarter Comments $2.00 CAGR – 18% Reporting segment updates included on 1.85 succeeding slides. Aggregate items 1.67 embedded in segment reviews: Acquisition-related income $1.50 1.42 Ongoing cost management Re
Slide 7: Performance Coatings
Performance Coatings PPG’s Expanding Central American Network & Products $MM (USD) 2Q15 2Q16 Chg % Net Sales 2,410 2,338 -72 -3% Income 411 428 17 +4% Margin % 17.1% 18.3% -- -- Select Net Sales Detail Total Volume Currency Asia 2Q Y-O-Y Change -3% -2% -3% Second Quarter (Y-O-Y): Third Quarter 2016
Slide 8: Industrial Coatings
Industrial Coatings 7.0 $MM (USD) Regional Auto Production Forecast (million units) 2Q15 2Q16 Chg % 6.5 Net Sales 1,411 1,444 33 +2% 6.0 5.5 Income 260 292 32 +12% 5.0 4.5 Margin % 18.4% 20.2% -- -- 4.0 Select Net Sales Detail Total Volume Currency 3.5 N. America EMEA China 2Q Y-O-Y Change +2% +3% -
Slide 9: Glass
Glass $MM (USD) 50 Glass Segment Income ($MM) 2Q15 2Q16 Chg % 43 40 37 38 Net Sales 279 282 3 +1% 32 33 30 28 Income 37 43 6 +16% 30 Margin % 13.3% 15.2% -- -- 20 10 Select Net Sales Detail Total Volume Currency 2Q Y-O-Y Change 0 +1% 0% -1% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Second Quarter (Y
Slide 10: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Short Term Second Quarter 2016 Activity Investments ($MM) $3,500 2Q 2016 approximate cash uses: Capital Spending - $90MM $3,000 $2,913 Dividends - $105MM Gross (pre-tax) Pittsburgh Corning $2,500 Asbestos Trust Funding - ~$815MM No share repur
Slide 11: Summary
Summary Strong second quarter financial performance • Second quarter adjusted earnings per diluted share up 11 percent year-over-year; 14th consecutive double-digit percentage increase • Sales in local currencies up 1 percent; acquisition-related sales added over 1 percent • Sixth consecutive quar
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 2nd Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Year 2016 Net Income/(Loss) Attributable to PPG as Reported $ 370 $ 1.37 -- -- $ 370 $ 1.37 Transaction-related costs 5 0.02 -- -- 5 0.02 Asse
Slide 14: Regulation G Reconciliation
Regulation G Reconciliation 2nd Quarter Reporting Period Three Months Ended June 30, 2016 Income Before Income Taxes Tax Expense Effective Tax Rate Effective tax rate, continuing operations $673 $297 44.1% Transaction-related costs 7 2 37.6% Asset write-downs 10 3 25.0% Gain from sale of equity affi