-
Fourth quarter net sales of $3.7 billion, up 14 percent versus prior
year
-
Record fourth quarter earnings per diluted share from continuing
operations, up 45 percent versus prior year
-
Full-year 2013 net sales of $15.1 billion, up 12 percent versus 2012
-
Full-year 2013 adjusted earnings per diluted share from continuing
operations of $8.28, up 29 percent versus prior year
-
Each major geographic region delivered record full-year earnings
-
Company repurchased $1.0 billion of stock in 2013
-
Year-end cash and short-term investments totaled $1.75 billion
PITTSBURGH--(BUSINESS WIRE)--Jan. 16, 2014--
PPG Industries (NYSE:PPG) today reported record fourth quarter 2013 net
sales from continuing operations of $3.7 billion, up $459 million, or 14
percent, versus the prior year. Fourth quarter 2013 reported net income
from continuing operations was $254 million, or $1.78 per diluted share.
Fourth quarter 2013 adjusted net income from continuing operations was
$258 million, or $1.81 per diluted share, which excludes $4 million, or
3 cents per diluted share, for acquisition-related costs. Fourth quarter
2012 reported net income and earnings per diluted share from continuing
operations were $191 million and $1.23, respectively, and adjusted net
income from continuing operations was $194 million, or $1.25 per diluted
share, respectively, excluding $3 million, or 2 cents per diluted share,
for acquisition-related costs.
“Our record fourth quarter financial performance caps off one of the
most successful years in the company’s history, both financially and
strategically,” said Charles E. Bunch, PPG chairman and chief executive
officer. “With the 45 percent increase in earnings per share versus last
year, we have now delivered 14 consecutive quarters of record adjusted
earnings, illustrating the benefits of our strong coatings portfolio,
broad global footprint, prudent cash deployment and measurable results
from our strategic actions.
“We achieved record fourth quarter financial results, as higher earnings
stemming from our continuing operating and cost discipline are now being
coupled with a higher level of organic sales growth,” Bunch said. “We
continued to outpace industry growth in aerospace and automotive OEM
coatings. More broadly, we also benefited from stabilizing regional
demand in Europe, as our year-over-year coatings volumes in that region
were flat in the fourth quarter following nine consecutive quarters of
decline.
“On a full-year basis, we remained focused on creating shareholder
value, including completion of several considerable strategic actions to
shift to a more consistent and higher-growth business portfolio,” Bunch
added. “We delivered all-time record full-year earnings, more than
replacing the earnings from the separated commodity chemicals business,
as we continue to benefit from aggressive management of our existing
businesses combined with earnings accretion from cash deployed. During
2013 we maintained a balanced use of cash, spending $1.5 billion on
acquisitions and capital spending focused on growing our company, and
continuing our heritage of rewarding shareholders by returning about 75
percent of our cash from operations, or $1.35 billion, in dividends and
stock repurchases.”
Looking ahead, Bunch said, “We expect to realize benefits from modest
global growth. Regionally, we expect growth to remain broadest in the
U.S. economy, spanning several coatings end-use markets.
Emerging-regions growth, while still uneven, is expected to continue at
a solid pace for PPG, comparable to recent trends. In Europe, which
represents about one-third of our sales, economies appear to be
improving but remain fragile. In 2014, we anticipate measured growth in
that region, and we expect to realize solid earnings leverage due to the
actions we have taken the past two years to significantly reduce our
regional cost structure.”
Bunch also said the company remained slightly ahead of schedule on
achieving targeted acquisition-related cost synergies relating to the
North American architectural coatings acquisition. He added that the
restructuring program approved in the third quarter 2013 is focused
primarily on achieving the remaining synergies, and those actions are
now underway. As a result, the company expects incremental cost savings
of between $75 million and $90 million in 2014.
“Lastly, we ended the year with a strong balance sheet and cash
position, which we expect to be supplemented by continued strong free
cash flow, along with the receipt of about $1.5 billion in after-tax
proceeds from the pending sale of our ownership interest in the
Transitions Optical joint venture. Over the next 18 to 24 months, we
anticipate deploying between $3.0 billion and $4.0 billion of cash in a
disciplined manner on incremental earnings-growth initiatives, and
returning cash to shareholders,” Bunch concluded.
The company today reported year-to-date cash from continuing operations
of about $1.8 billion, a 15 percent increase versus the prior year.
Full-year capital spending was slightly more than $500 million. Cash
used for business acquisitions totaled about $1.0 billion. The company
also noted that 2013 marked the 42nd consecutive year of
increasing annual per-share dividend payouts, with cash dividends paid
of about $350 million. The company also repurchased $1.0 billion, or 5.7
million shares, of PPG stock. PPG ended the year with cash and
short-term investments totaling $1.75 billion.
Fourth Quarter 2013 Reporting Segment Financial Results
-
Performance Coatings segment net sales for the quarter were $1.4
billion, up 25 percent. The increase was due primarily to
acquired-business sales, partly offset by a 3 percent decline in
segment volumes. Aerospace net sales growth continued, aided by
ongoing industry growth and sales from acquired businesses. Automotive
refinish net sales grew in all major regions, including continued
emerging-region volume gains and a return to growth in Europe.
Excluding the favorable acquisition impacts, architectural coatings
sales results by distribution channel were similar to results in
recent quarters, including company-owned stores growth of more than 10
percent and lower national retail channel sales due to a previously
disclosed change in products sold to a large retail customer. Lower
but stabilizing marine new-build activity remained a large negative
impact to segment volumes. Overall, the segment experienced normal
seasonal trends, although the size and seasonality of the acquired
architectural business amplified the impact in comparison to prior
years. Segment earnings of $179 million were up 1 percent as a result
of the increased net-sales impacts, partly offset by higher
growth-related expenses in aerospace and automotive refinish.
-
Industrial Coatings segment net sales for the quarter were $1.2
billion, increasing 10 percent, or $108 million, versus the prior year
primarily due to strong volume improvement, with acquisition-related
gains also contributing. Volumes in automotive original equipment
manufacturer (OEM) coatings grew by more than 10 percent globally,
outpacing a global industry growth rate of about 3 percent, with each
major PPG region delivering similar growth rates. The industrial
coatings business also grew volumes globally, led by North American
gains, growth in Asia that remained varied by end-use market, and
initial volume recovery in European demand that led to a flat
year-over-year comparison for that region. Strong Asian packaging
coatings growth was offset by lower European demand. Segment earnings
for the quarter were $174 million, up 21 percent as a result of the
higher volumes and continued cost management.
-
Architectural Coatings – EMEA (Europe, Middle East and Africa) segment
net sales for the quarter were $466 million, up $1 million versus the
prior-year quarter primarily due to favorable foreign currency
translation. Fourth quarter volumes declined by 4 percent year over
year, consistent with the previous quarter and a significant
improvement versus the first half 2013, when year-over-year volume
declines averaged 10 percent. Despite the lower volumes, segment
earnings of $22 million were $13 million higher than the previous year
due to lower costs, including benefits from completed restructuring
actions and ongoing discretionary cost management.
-
Optical and Specialty Materials segment net sales for the quarter were
$309 million, up $37 million versus the prior year. Optical products
net sales improved as continued global demand growth was supplemented
by customer inventory stocking ahead of the TRANSITIONS(R) Generation
VII product introduction in North America, which commenced this month.
Silica products volume also grew on improved demand. Segment earnings
of $85 million were up 25 percent versus the prior year stemming from
the sales improvement, partly offset by higher selling-related costs
supporting the higher demand and product launch.
-
Glass segment net sales were $264 million for the quarter, up $23
million year over year. Segment volumes grew 8 percent on improved
global fiber glass demand. Flat glass pricing increased, as did
commercial construction-related demand. Segment earnings were $22
million, an increase of $14 million versus the prior-year quarter.
Segment earnings improved due to higher net sales and manufacturing
cost improvements, partly offset by the negative impact of cost
inflation, including higher transportation and natural gas costs.
Full-Year 2013 Financial Results
PPG’s 2013 annual net sales from continuing operations were $15.1
billion, an increase of 12 percent versus $13.5 billion the prior year.
The company’s full-year 2013 reported net income from continuing
operations was $1.0 billion, or $7.13 per diluted share, versus $726
million, or $4.69 per diluted share, in 2012. Full-year 2013 adjusted
net income from continuing operations was $1.2 billion, or $8.28 per
diluted share, versus $995 million, or $6.44 per diluted share, in 2012.
A detailed reconciliation of the reported to the adjusted figures is
included below.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world’s leading coatings
and specialty materials company. Through leadership in innovation,
sustainability and color, PPG helps customers in industrial,
transportation, consumer products, and construction markets and
aftermarkets to enhance more surfaces in more ways than does any other
company. Founded in 1883, PPG has global headquarters in Pittsburgh and
operates in nearly 70 countries around the world. Net sales in 2013 were
$15.1 billion. PPG shares are traded on the New York Stock Exchange
(symbol: PPG). For more information, visit www.ppg.com
and follow @PPGIndustries
on Twitter.
Additional Information
PPG will provide detailed commentary regarding its financial
performance, including presentation-slide content, on the PPG
Investor Center at www.ppg.com at 1 p.m. ET today, Jan. 16. The
company will hold a conference call to review its fourth quarter and
full-year 2013 financial performance today at 2 p.m. ET. The dial-in
numbers are: in the United States, 877-474-9505; international,
+1-857-244-7558; passcode 49803911. The conference call also will be
available in listen-only mode via Internet broadcast from the PPG
Investor Center at www.ppg.com (Windows Media Player). A telephone
replay will be available today, Jan. 16, beginning at approximately 6
p.m. ET, through Thursday, Jan. 30, at 11:59 p.m. ET. The dial-in
numbers for the replay are: in the United States, 888-286-8010;
international, +1-617-801-6888; passcode 59648049. A Web replay also
will be available on the PPG
Investor Center at www.ppg.com, beginning at approximately 4:30 p.m.
ET today, Jan. 16, 2014, through Thursday, Jan. 15, 2015.
Forward-Looking Statements
Statements in this news release relating to matters that are not
historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 reflecting the
company’s current view with respect to future events or objectives and
financial or operational performance or results. These matters involve
risks and uncertainties as discussed in PPG Industries’ periodic reports
on Form 10-K and Form 10-Q, and its current reports on Form 8-K, filed
with the Securities and Exchange Commission (SEC). Accordingly, many
factors could cause actual results to differ materially from the
company’s forward-looking statements.
Among these factors are global economic conditions, increasing price and
product competition by foreign and domestic competitors, fluctuations in
cost and availability of raw materials, the ability to maintain
favorable supplier relationships and arrangements, the realization of
anticipated cost savings from restructuring initiatives, difficulties in
integrating acquired businesses and achieving expected synergies
therefrom, the ability to penetrate existing, developing or emerging
foreign and domestic markets, economic and political conditions in
international markets, foreign exchange rates and fluctuations in such
rates, fluctuations in tax rates, the impact of future legislation, the
impact of environmental regulations, unexpected business disruptions and
the unpredictability of possible future litigation, including litigation
that could result if the asbestos settlement discussed in PPG’s filings
with the SEC does not become effective. However, it is not possible to
predict or identify all such factors.
Consequently, while the list of factors presented here is considered
representative, no such list should be considered to be a complete
statement of all potential risks and uncertainties. Unlisted factors may
present significant additional obstacles to the realization of
forward-looking statements.
Consequences of material differences in results as compared with those
anticipated in the forward-looking statements could include, among other
things, business disruption, operational problems, financial loss, legal
liability to third parties and similar risks, any of which could have a
material adverse effect on PPG’s consolidated financial condition,
results of operations or liquidity.
Forward-looking statements speak only as of the date of their initial
issuance, and PPG does not undertake any obligation to update or revise
publicly any forward-looking statement, whether as a result of new
information, future events or otherwise, except as otherwise required by
applicable law.
Regulation G Reconciliation
PPG Industries believes investors' understanding of the company's
operating performance is enhanced by the disclosure of net income and
earnings per diluted share adjusted for nonrecurring charges. PPG's
management considers this information useful in providing insight into
the company’s ongoing operating performance because it excludes the
impact of items that cannot reasonably be expected to recur on a
quarterly basis. Net income and earnings per diluted share adjusted for
these items are not recognized financial measures determined in
accordance with U.S. generally accepted accounting principles (GAAP) and
should not be considered a substitute for net income or earnings per
diluted share or other financial measures as computed in accordance with
U.S. GAAP. In addition, adjusted net income and earnings per diluted
share may not be comparable to similarly titled measures as reported by
other companies.
The following is a reconciliation of reported and adjusted net income
and earnings per diluted share for the fourth quarter and full year:
|
|
|
Regulation G Reconciliation – Net Income and Earnings per Diluted
Share
|
|
($ in millions, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2013
|
|
|
Full Year 2013
|
|
|
|
$
|
|
EPS
|
|
|
$
|
|
|
EPS
|
|
Reported net income from continuing operations
|
|
$
|
254
|
|
$
|
1.78
|
|
|
$
|
1,034
|
|
|
$
|
7.13
|
|
|
Acquisition-related costs
|
|
|
4
|
|
|
0.03
|
|
|
|
28
|
|
|
|
0.19
|
|
|
Business restructuring costs
|
|
|
-
|
|
|
-
|
|
|
|
73
|
|
|
|
0.50
|
|
|
Legacy environmental reserve increases
|
|
|
-
|
|
|
-
|
|
|
|
64
|
|
|
|
0.44
|
|
|
Legacy pension settlement costs
|
|
|
-
|
|
|
-
|
|
|
|
13
|
|
|
|
0.09
|
|
|
U.S. tax law change enacted in 2013
|
|
|
-
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
(0.07
|
)
|
|
Adjusted, excluding nonrecurring items
|
|
$
|
258
|
|
$
|
1.81
|
|
|
$
|
1,202
|
|
|
$
|
8.28
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2012
|
|
|
Full Year 2012
|
|
|
|
$
|
|
EPS
|
|
|
$
|
|
|
EPS
|
|
Reported net income from continuing operations
|
|
$
|
191
|
|
$
|
1.23
|
|
|
$
|
726
|
|
|
$
|
4.69
|
|
|
Acquisition-related costs
|
|
|
3
|
|
|
0.02
|
|
|
|
7
|
|
|
|
0.05
|
|
|
Business restructuring costs
|
|
|
-
|
|
|
-
|
|
|
|
163
|
|
|
|
1.06
|
|
|
Legacy environmental reserve increases
|
|
|
-
|
|
|
-
|
|
|
|
99
|
|
|
|
0.64
|
|
|
Adjusted, excluding nonrecurring items
|
|
$
|
194
|
|
$
|
1.25
|
|
|
$
|
995
|
|
|
$
|
6.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
CONDENSED STATEMENT OF OPERATIONS (unaudited)
|
|
(All amounts in millions except per-share data)
|
|
|
|
|
3 Months ended
|
|
Year ended
|
|
|
|
|
Dec. 31
|
|
Dec. 31
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,702
|
|
|
$
|
3,243
|
|
|
$
|
15,108
|
|
|
$
|
13,512
|
|
|
Cost of sales, exclusive of depreciation and amortization (Note A)
|
|
|
2,108
|
|
|
|
1,910
|
|
|
|
8,636
|
|
|
|
7,905
|
|
|
Selling, R&D and administrative expenses (Note B)
|
|
|
1,083
|
|
|
|
924
|
|
|
|
4,187
|
|
|
|
3,653
|
|
|
Depreciation (Note B)
|
|
|
94
|
|
|
|
79
|
|
|
|
356
|
|
|
|
312
|
|
|
Amortization (Note B)
|
|
|
31
|
|
|
|
27
|
|
|
|
119
|
|
|
|
109
|
|
|
Interest expense
|
|
|
48
|
|
|
|
55
|
|
|
|
196
|
|
|
|
210
|
|
|
Interest income
|
|
|
(13
|
)
|
|
|
(10
|
)
|
|
|
(43
|
)
|
|
|
(39
|
)
|
|
Asbestos settlement - net
|
|
|
2
|
|
|
|
3
|
|
|
|
11
|
|
|
|
12
|
|
|
Business restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
98
|
|
|
|
208
|
|
|
Other (income)/charges - net (Note C)
|
|
|
(24
|
)
|
|
|
(21
|
)
|
|
|
59
|
|
|
|
85
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
373
|
|
|
|
276
|
|
|
|
1,489
|
|
|
|
1,057
|
|
|
Income tax expense (Note D)
|
|
|
91
|
|
|
|
62
|
|
|
|
333
|
|
|
|
221
|
|
|
Income from continuing operations, net of income taxes
|
|
|
282
|
|
|
|
214
|
|
|
|
1,156
|
|
|
|
836
|
|
|
Income from discontinued operations, net of income taxes (Note E)
|
|
|
-
|
|
|
|
39
|
|
|
|
2,197
|
|
|
|
228
|
|
|
Net income attributable to the controlling and noncontrolling
interests
|
|
|
282
|
|
|
|
253
|
|
|
|
3,353
|
|
|
|
1,064
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(28
|
)
|
|
|
(26
|
)
|
|
|
(122
|
)
|
|
|
(123
|
)
|
|
NET INCOME (ATTRIBUTABLE TO PPG)
|
|
$
|
254
|
|
|
$
|
227
|
|
|
$
|
3,231
|
|
|
$
|
941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to PPG:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
$
|
254
|
|
|
$
|
191
|
|
|
$
|
1,034
|
|
|
$
|
726
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
36
|
|
|
|
2,197
|
|
|
|
215
|
|
|
Net income (attributable to PPG)
|
|
$
|
254
|
|
|
$
|
227
|
|
|
$
|
3,231
|
|
|
$
|
941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG)
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
$
|
1.80
|
|
|
$
|
1.24
|
|
|
$
|
7.21
|
|
|
$
|
4.73
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
0.23
|
|
|
|
15.32
|
|
|
|
1.40
|
|
|
Net income (attributable to PPG)
|
|
$
|
1.80
|
|
|
$
|
1.47
|
|
|
$
|
22.53
|
|
|
$
|
6.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) - assuming dilution
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
$
|
1.78
|
|
|
$
|
1.23
|
|
|
$
|
7.13
|
|
|
$
|
4.69
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
0.23
|
|
|
|
15.14
|
|
|
|
1.37
|
|
|
Net income (attributable to PPG)
|
|
$
|
1.78
|
|
|
$
|
1.46
|
|
|
$
|
22.27
|
|
|
$
|
6.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
|
|
|
140.8
|
|
|
|
154.1
|
|
|
|
143.4
|
|
|
|
153.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - assuming dilution
|
|
|
142.6
|
|
|
|
156.1
|
|
|
|
145.1
|
|
|
|
155.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note A:
|
|
|
Cost of sales, exclusive of depreciation and amortization for the
year ended December 31, 2013 includes $16 million for final
settlement of certain legacy Canadian pension plans and $16 million
of flow-through cost of sales for the inventory step up to fair
value related to 2013 acquisitions. The year ended December 31, 2012
includes $6 million of flow-through cost of sales for the inventory
step up to fair value related to 2012 acquisitions.
|
|
|
|
|
Note B:
|
|
|
Selling, R&D and administrative expenses includes $7 million of
acquisition-related charges for the quarter ended December 31, 2013.
For the year ended December 31, 2013, the caption includes $2
million for final settlement of certain legacy Canadian pension
plans and $26 million for acquisition-related charges. Selling and
administrative expenses, depreciation and amortization are higher in
2013 compared to 2012 primarily due to the increased impact from
acquisitions.
|
|
|
|
|
Note C:
|
|
|
The years ended December 31, 2013 and 2012 include pretax charges of
$101 million and $159 million, respectively, for environmental
remediation activities.
|
|
|
|
|
Note D:
|
|
|
The effective rate on pretax earnings from continuing operations for
the quarter ended December 31, 2013 includes tax benefits of $3
million for acquisition-related costs. The effective tax rate on the
remaining pre-tax earnings from continuing operations was 24.6
percent resulting in tax expense of $93 million. The effective rate
on pretax earnings from continuing operations for the quarter ended
December 31, 2012 includes tax benefits of $2 million for
acquisition-related costs. The effective tax rate on the remaining
pretax earnings from continuing operations was approximately 23
percent resulting in tax expense of $64 million.
|
|
|
|
|
|
The effective rate on pretax earnings from continuing operations for
the year ended December 31, 2013 includes tax benefits of $37
million or approximately 37 percent for estimated environmental
remediation costs, $25 million or approximately 25 percent for
business restructuring charges, $14 million or approximately 33
percent for acquisition related costs, and $5 million or
approximately 27 percent for final settlement of legacy pension
plans. The year also includes an after-tax benefit of $10 million
for the retroactive impact of a U.S. tax law change enacted in early
2013 that was not included in previously reported 2012 earnings. The
effective tax rate on the remaining pre-tax earnings from continuing
operations was 24.2 percent resulting in tax expense of $424 million.
|
|
|
|
|
|
The effective rate on pretax earnings from continuing operations for
the year ended December 31, 2012 includes tax benefits of $45
million or approximately 22 percent for business restructuring
charges, $60 million or approximately 38 percent for estimated
environmental remediation costs, and $4 million or approximately 36
percent for acquisition related costs. The effective tax rate on the
remaining pre-tax earnings from continuing operations was
approximately 23 percent resulting in tax expense of $330 million.
|
|
|
|
|
Note E:
|
|
|
Income from discontinued operations includes the historical
operating results of PPG's former Commodity Chemicals business that
was separated on January 28, 2013. For the year ended December 31,
2013 income from discontinued operations includes a net gain on the
separation transaction of $2.2 billion.
|
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
BALANCE SHEET HIGHLIGHTS (unaudited)
|
|
(All amounts in millions)
|
|
|
|
|
|
|
|
|
|
Dec. 31
|
|
Dec. 31
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012 (b)
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (a)
|
|
|
|
|
|
|
$
|
1,116
|
|
|
$
|
1,306
|
|
|
|
Short-term investments (a)
|
|
|
|
|
|
|
|
629
|
|
|
|
1,087
|
|
|
|
Receivables - net
|
|
|
|
|
|
|
|
2,736
|
|
|
|
2,813
|
|
|
|
Inventories
|
|
|
|
|
|
|
|
1,824
|
|
|
|
1,687
|
|
|
|
Other
|
|
|
|
|
|
|
|
909
|
|
|
|
822
|
|
|
|
Total current assets
|
|
|
|
|
|
|
$
|
7,214
|
|
|
$
|
7,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt (a)
|
|
|
|
|
|
|
$
|
34
|
|
|
$
|
642
|
|
|
|
Asbestos settlement
|
|
|
|
|
|
|
|
763
|
|
|
|
683
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
|
3,338
|
|
|
|
3,136
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
$
|
4,135
|
|
|
$
|
4,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
|
$
|
3,372
|
|
|
$
|
3,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPG OPERATING METRICS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
(All amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31
|
|
Dec. 31
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012 (b)
|
|
Operating Working Capital (c)
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
|
$
|
2,678
|
|
|
$
|
2,878
|
|
|
|
As a percent of quarter sales, annualized
|
|
|
|
|
|
|
|
18.1
|
%
|
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The decrease in cash and cash equivalents and short-term investments
is primarily a result of the repayment of $600 million of long-term
debt in March of 2013.
|
|
|
|
|
|
(b)
|
|
All 2012 balances include PPG's former Commodity Chemicals
business that was separated in January 2013. Excluding the
Commodity Chemicals business, operating working capital was $2,634
million or 20.3 percent at December 31, 2012.
|
|
|
|
|
|
(c)
|
|
Operating working capital includes (1) receivables from customers,
net of the allowance for doubtful accounts, plus (2) inventories on
a first-in, first-out (FIFO) basis, less (3) the trade creditor's
liability.
|
|
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
BUSINESS SEGMENT INFORMATION (unaudited)
|
|
(All amounts in millions)
|
|
3 Months ended
|
|
Year ended
|
|
|
|
|
Dec. 31
|
|
Dec. 31
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
(millions)
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Performance Coatings
|
|
$ 1,441
|
|
$ 1,151
|
|
$ 5,872
|
|
$ 4,752
|
|
|
Industrial Coatings
|
|
1,222
|
|
1,114
|
|
4,845
|
|
4,379
|
|
|
Architectural Coatings - EMEA
|
|
466
|
|
465
|
|
2,062
|
|
2,147
|
|
|
Optical and Specialty Materials
|
|
309
|
|
272
|
|
1,262
|
|
1,202
|
|
|
Glass
|
|
264
|
|
241
|
|
1,067
|
|
1,032
|
|
|
TOTAL
|
|
$ 3,702
|
|
$ 3,243
|
|
$15,108
|
|
$13,512
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income
|
|
|
|
|
|
|
|
|
|
|
Performance Coatings
|
|
$ 179
|
|
$ 177
|
|
$ 858
|
|
$ 744
|
|
|
Industrial Coatings
|
|
174
|
|
144
|
|
724
|
|
590
|
|
|
Architectural Coatings - EMEA
|
|
22
|
|
9
|
|
184
|
|
145
|
|
|
Optical and Specialty Materials
|
|
85
|
|
68
|
|
368
|
|
348
|
|
|
Glass
|
|
22
|
|
8
|
|
56
|
|
63
|
|
|
TOTAL
|
|
482
|
|
406
|
|
2,190
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
Items not allocated to segments
|
|
|
|
|
|
|
|
|
|
|
Legacy items (Note A)
|
|
(9)
|
|
(14)
|
|
(165)
|
|
(217)
|
|
|
Business restructuring costs
|
|
-
|
|
-
|
|
(98)
|
|
(208)
|
|
|
Acquisition-related costs
|
|
(7)
|
|
(5)
|
|
(42)
|
|
(11)
|
|
|
Interest expense, net of interest income (Note B)
|
|
(35)
|
|
(45)
|
|
(153)
|
|
(171)
|
|
|
Other corporate expense
|
|
(58)
|
|
(66)
|
|
(243)
|
|
(226)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
$ 373
|
|
$ 276
|
|
$ 1,489
|
|
$ 1,057
|
|
|
|
|
|
|
|
|
|
|
|
Note A:
|
|
|
Legacy items include current costs related to former operations of
the company, including pension and other postretirement benefit
costs, certain charges for legal matters and environmental
remediation costs, and certain charges that are considered to be
unusual or nonrecurring including the earnings impact of the
proposed asbestos settlement. Legacy items also include equity
earnings from PPG's approximately 40 percent investment in the
former automotive glass and services business.
|
|
|
|
|
|
The year ended December 31, 2013 includes pretax charges of $18
million for final settlement of certain legacy Canadian pension
plans. In addition, the years ended December 31, 2013 and 2012
include pretax charges for environmental remediation activities of
$101 million and $159 million, respectively. These charges primarily
relate to environmental remediation activities at the Company's
former Jersey City, N.J., manufacturing plant and associated sites.
|
|
|
|
|
Note B:
|
|
|
Interest expense, net of interest income, is lower for the both the
three months ended and the year ended December 31, 2013 compared to
the same periods a year ago primarily as a result of the repayment
of the $600 million 5.75% notes in March 2013.
|
|
|
|
|
|
|
Bringing innovation to the surface is a trademark of PPG
Industries Ohio, Inc.
Transitions is a registered trademark
of Transitions Optical, Inc.
Source: PPG Industries, Inc.
PPG Industries, Inc.
Media:
Mark Silvey, PPG Corporate
Communications, 412-434-3046
silvey@ppg.com
or
Investors:
Vince
Morales, PPG Investor Relations, 412-434-3740
vmorales@ppg.com