-
Fourth quarter net sales increased 6 percent
-
Quarterly sales volumes up 4 percent as growth rates in each major
region matched or exceeded previous quarter
-
Record fourth quarter adjusted earnings per diluted share from
continuing operations of $2.11, up 26 percent year-over-year
-
Comex acquisition contributed to sales and earnings growth
-
Share repurchases totaled $300 million for the fourth quarter, $750
million for the full year 2014
-
Record full-year net sales of $15.4 billion, up 8 percent
year-over-year
-
Record full-year adjusted earnings per diluted share from continuing
operations of $9.75, up 27 percent year-over-year
-
Cash and short-term investments totaling $1.2 billion at year-end
PITTSBURGH--(BUSINESS WIRE)--Jan. 15, 2015--
PPG Industries (NYSE:PPG) today reported fourth quarter 2014 net sales
from continuing operations of $3.71 billion, up $207 million, or 6
percent, versus the prior-year figure of $3.5 billion. Net sales in
local currencies grew 10 percent year-over-year, with
acquisition-related sales contributing about 6 percent and volume growth
adding 4 percent. Unfavorable currency translation impacted net sales by
4 percent, or about $130 million.
Fourth quarter 2014 reported net income from continuing operations was
$86 million, or 62 cents per diluted share. Fourth quarter 2014 adjusted
net income from continuing operations was $293 million, or $2.11 per
diluted share. The adjusted figures exclude debt refinancing charges of
$200 million after-tax, or $1.44 per diluted share, $36 million
after-tax, or 26 cents per diluted share, for transaction-related costs
primarily from the Comex acquisition, and the benefit of lower taxes of
$29 million, or 21 cents per diluted share, relating to a favorable
ruling on a prior-year foreign tax matter. The ongoing tax rate on the
adjusted earnings excluding these adjustments was 23.5 percent for the
fourth quarter and 23.9 percent for the full year, consistent with the
company’s prior guidance.
Fourth quarter 2013 reported net income and earnings per diluted share
were $237 million and $1.66, respectively. Adjusted fourth quarter 2013
net income from continuing operations was $240 million with earnings
from continuing operations of $1.68 per diluted share, excluding
transaction-related costs of $3 million, or 2 cents per diluted share.
“We established new fourth quarter and full-year milestones in sales and
adjusted earnings per share from continuing operations,” said Charles E.
Bunch, PPG chairman and chief executive officer. “Our strong financial
performance, including several consecutive years of at least 20 percent
adjusted earnings growth, clearly illustrates the benefits of our active
portfolio management, earnings-accretive cash deployment and persistent
operational focus.
“For the fourth quarter, our adjusted earnings per share increased by 26
percent supported by growth of at least 10 percent from each reporting
segment,” Bunch said. “While overall global economic activity remained
modest, our sales volumes improved about 4 percent, with each major
region delivering volume growth at or above our third quarter results.
This was aided by solid growth in each business in our Industrial
Coatings segment, along with continuing sales improvement in aerospace
and automotive refinish.
“Strategically, 2014 was another successful and eventful year as we
continued to enhance our business portfolio, including completion of the
Comex acquisition in the fourth quarter. We are very pleased to now have
this high-quality business as part of PPG,” Bunch said. “We also
continued our heritage of returning cash to shareholders, with more than
$1.1 billion returned for the year through dividends and share
repurchases.”
In April, the company raised the per-share dividend by 10 percent. PPG
has paid annual dividends for 115 consecutive years, including 43
consecutive years of increased per-share payouts.
“As evidenced by our results, we remain poised to benefit from
continuing global growth due to our broad geographic reach and excellent
product portfolio, coupled with our previously completed restructuring
actions and ongoing cost discipline,” Bunch said. “As we enter 2015, we
anticipate growth rates will remain mixed by region, with North American
and Asian economies continuing to grow at rates generally consistent
with 2014. Our base case assumption is that European growth will remain
mixed by country but subdued overall. However, we believe that European
economies stand to benefit considerably if oil prices remain at current
levels, which may stimulate higher growth in that region.
“From a PPG perspective, we remain focused on new product development,
operational excellence and continued opportunities to deploy cash for
earnings accretion. Our acquisition pipeline remains active, and share
repurchases remain an integral element of our capital allocation
strategies. We anticipate deploying $1.5 billion to $2.5 billion of cash
in years 2015 and 2016 combined, on acquisitions and share repurchases,
with a focus on creating additional shareholder value,” Bunch concluded.
PPG today reported cash and short-term investments totaling $1.2 billion
at year-end. The company repurchased $300 million, or about 1.4 million
shares, of PPG stock during the quarter. PPG also reported approximate
full-year 2014 cash uses as follows: $585 million for capital spending,
$360 million for dividends paid, $2.5 billion on acquisitions (including
repayment of debt acquired), and $750 million on share repurchases
totaling approximately 3.8 million shares.
Fourth Quarter 2014 Reportable Segment Financial Results
-
Performance Coatings segment net sales for the quarter were $2.1
billion, up $184 million, or 10 percent, over the prior-year period.
The sales growth was primarily due to acquisition-related gains,
including about $175 million of sales from the Comex acquisition that
closed in early November. Segment sales volumes improved 2 percent and
pricing added 1 percent year-over-year, offset by unfavorable currency
translation of 4 percent. Sales growth rates in local currencies
improved in all regions, with the rate of growth consistent with or
above the third quarter rate. Growth continued in aerospace and
automotive refinish, reflecting increased end-use market demand. North
American architectural coatings sales grew by low- to mid-single-digit
percentages, with results consistent across national accounts and
company-owned stores. Architectural coatings – EMEA (Europe, Middle
East and Africa) sales volumes were down 2 percent versus an improving
sales trend in the prior-year period. Demand in the region remained
mixed by country, with certain countries improving while others
lagged. Aggregate protective and marine coatings sales also improved,
aided by growth in Asia. Segment earnings of $239 million were up $37
million, or 18 percent, as a result of the increase in sales volumes
and acquisition-related earnings, including a mid-teens percentage
return on sales for the Comex acquisition.
-
Industrial Coatings segment net sales for the quarter were $1.34
billion, increasing $15 million, or 1 percent, year-over-year. Sales
volume growth of 5 percent was partly offset by unfavorable currency
translation of 4 percent. Automotive original equipment manufacturer
(OEM) coatings delivered higher sales volumes in all regions, growing
in aggregate by mid- to high-single-digit percentages, which exceeded
the global industry growth rate of about 2 percent. The industrial
coatings and specialty coatings and materials businesses also
delivered higher sales volumes across all major regions, led by volume
growth in the U.S. and Canada. Packaging coatings sales volumes grew,
including higher European results. Total segment earnings for the
quarter were $223 million, up $21 million, or 10 percent,
year-over-year as a result of the higher sales and manufacturing cost
improvements.
-
Glass segment net sales were $272 million for the quarter, up $8
million, or 3 percent, year-over-year on higher sales volumes and
selling prices, partly offset by negative currency translation. Solid
flat glass sales volume growth continued, aided by higher demand for
value-added products serving residential and non-residential end-use
markets. These gains were offset by lower fiber glass volumes, as
higher European volumes were offset by weaker volumes in the U.S. due
to customer inventory management. Segment earnings were $33 million,
up $11 million versus the prior year, due to the higher sales and
improved manufacturing utilization and costs.
Full-Year 2014 Financial Results
PPG’s 2014 full-year net sales from continuing operations were $15.4
billion, an increase of 8 percent versus $14.3 billion the prior year.
Acquisition-related sales contributed 4 percent year-over-year,
supplemented by sales volumes and pricing, which added 4 percent and 1
percent, respectively, and partly offset by unfavorable currency
translation of 1 percent. The company’s 2014 full-year reported net
income from continuing operations was $1.13 billion, or $8.10 per
diluted share, versus $950 million, or $6.55 per diluted share, in 2013.
Full-year 2014 adjusted net income from continuing operations was $1.36
billion, or $9.75 per diluted share, versus $1.11 billion, or $7.67 per
diluted share, in 2013.
A detailed reconciliation of the reported to the adjusted figures for
the fourth quarter and full year 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. Reported net sales in
2014 were $15.4 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. 15. The
company will hold a conference call to review its fourth quarter and
full-year 2014 financial performance today at 2 p.m. ET. The dial-in
numbers are: in the United States, 877-703-6109; international,
+1-857-244-7308; passcode 91616852. 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. 15, beginning at approximately 6
p.m. ET, through Jan. 22, 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 95506110. 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. 15, 2015, through Friday, Jan. 15, 2016.
Forward-Looking Statements
Statements contained herein relating to matters that are not historical
facts are forward-looking statements reflecting PPG’s current view with
respect to future events and financial performance. These matters within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
involve risks and uncertainties that may affect PPG’s operations, as
discussed in PPG’s filings with the Securities and Exchange Commission
pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the
rules and regulations promulgated thereunder. Accordingly, many factors
could cause actual results to differ materially from the forward-looking
statements contained herein. Such factors include 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, economic and
political conditions in international markets, the ability to penetrate
existing, developing and emerging foreign and domestic 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 existing and possible future litigation, including litigation that
could result if the asbestos settlement discussed in PPG’s filings with
the Securities and Exchange Commission does not become effective.
However, it is not possible to predict or identify all such factors.
Consequently, while the list of factors presented here and in PPG’s 2013
Form 10-K are 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 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 undertakes no
obligation to update any forward-looking statement, 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
2014
|
|
|
|
Fourth Quarter
2013
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
EPS
|
|
|
|
$
|
|
|
|
EPS
|
|
Reported net income from continuing operations
|
|
|
|
|
|
|
|
$86
|
|
|
|
$0.62
|
|
|
|
|
$237
|
|
|
|
$1.66
|
|
|
Debt refinancing charge
|
|
|
|
|
|
|
|
200
|
|
|
|
1.44
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Transaction-related costs
|
|
|
|
|
|
|
|
36
|
|
|
|
0.26
|
|
|
|
|
3
|
|
|
|
0.02
|
|
|
Favorable foreign tax ruling
|
|
|
|
|
|
|
|
(29
|
)
|
|
|
(0.21
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted, excluding nonrecurring items
|
|
|
|
|
|
|
|
$293
|
|
|
|
$2.11
|
|
|
|
|
$240
|
|
|
|
$1.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2014
|
|
|
|
Full Year
2013
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
EPS
|
|
|
|
$
|
|
|
|
EPS
|
|
Reported net income from continuing operations
|
|
|
|
|
|
|
|
$1,133
|
|
|
|
$8.10
|
|
|
|
|
$950
|
|
|
|
$6.55
|
|
|
Debt refinancing charge
|
|
|
|
|
|
|
|
200
|
|
|
|
1.44
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Increase to legacy environmental reserves
|
|
|
|
|
|
|
|
86
|
|
|
|
0.61
|
|
|
|
|
64
|
|
|
|
0.44
|
|
|
Business restructuring
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
73
|
|
|
|
0.50
|
|
|
Transaction-related costs
|
|
|
|
|
|
|
|
42
|
|
|
|
0.30
|
|
|
|
|
24
|
|
|
|
0.16
|
|
|
Pension settlement costs
|
|
|
|
|
|
|
|
5
|
|
|
|
0.03
|
|
|
|
|
13
|
|
|
|
0.09
|
|
|
Retroactive benefit of U.S. tax law change
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(10
|
)
|
|
|
(0.07
|
)
|
|
Favorable foreign tax ruling
|
|
|
|
|
|
|
|
(29
|
)
|
|
|
(0.21
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
Gain on asset dispositions
|
|
|
|
|
|
|
|
(73
|
)
|
|
|
(0.52
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted, excluding nonrecurring items
|
|
|
|
|
|
|
|
$1,364
|
|
|
|
$9.75
|
|
|
|
|
$1,114
|
|
|
|
$7.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
|
|
(All amounts in millions except per-share data)
|
|
|
|
|
Three Months ended
|
|
Year ended
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,707
|
|
|
$
|
3,500
|
|
|
$
|
15,360
|
|
|
$
|
14,265
|
|
|
Cost of sales, exclusive of depreciation and amortization (Note A)
|
|
|
2,165
|
|
|
|
2,028
|
|
|
|
8,791
|
|
|
|
8,314
|
|
|
Selling, R&D and administrative expenses (Note A)
|
|
|
1,058
|
|
|
|
1,024
|
|
|
|
4,250
|
|
|
|
3,949
|
|
|
Depreciation
|
|
|
90
|
|
|
|
88
|
|
|
|
350
|
|
|
|
333
|
|
|
Amortization
|
|
|
33
|
|
|
|
31
|
|
|
|
126
|
|
|
|
119
|
|
|
Interest expense
|
|
|
45
|
|
|
|
48
|
|
|
|
187
|
|
|
|
196
|
|
|
Interest income
|
|
|
(12
|
)
|
|
|
(13
|
)
|
|
|
(50
|
)
|
|
|
(43
|
)
|
|
Business restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
98
|
|
|
Debt refinancing charge
|
|
|
317
|
|
|
|
-
|
|
|
|
317
|
|
|
|
-
|
|
|
Asbestos settlement - net
|
|
|
3
|
|
|
|
2
|
|
|
|
12
|
|
|
|
11
|
|
|
Other (income)/charges - net (Note B)
|
|
|
(13
|
)
|
|
|
(24
|
)
|
|
|
(39
|
)
|
|
|
62
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
21
|
|
|
|
316
|
|
|
|
1,416
|
|
|
|
1,226
|
|
|
Income tax (benefit)/expense
|
|
|
(71
|
)
|
|
|
71
|
|
|
|
259
|
|
|
|
253
|
|
|
Income from continuing operations, net of income taxes
|
|
|
92
|
|
|
|
245
|
|
|
|
1,157
|
|
|
|
973
|
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
(3
|
)
|
|
|
37
|
|
|
|
1,002
|
|
|
|
2,380
|
|
|
Net income attributable to the controlling and noncontrolling
interests
|
|
|
89
|
|
|
|
282
|
|
|
|
2,159
|
|
|
|
3,353
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(6
|
)
|
|
|
(28
|
)
|
|
|
(57
|
)
|
|
|
(122
|
)
|
|
NET INCOME (ATTRIBUTABLE TO PPG)
|
|
$
|
83
|
|
|
$
|
254
|
|
|
$
|
2,102
|
|
|
$
|
3,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to PPG:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
$
|
86
|
|
|
$
|
237
|
|
|
$
|
1,133
|
|
|
$
|
950
|
|
|
|
(Loss)/income from discontinued operations, net of tax (Note C)
|
|
|
(3
|
)
|
|
|
17
|
|
|
|
969
|
|
|
|
2,281
|
|
|
Net income (attributable to PPG)
|
|
$
|
83
|
|
|
$
|
254
|
|
|
$
|
2,102
|
|
|
$
|
3,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG)
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
$
|
0.63
|
|
|
$
|
1.68
|
|
|
$
|
8.19
|
|
|
$
|
6.62
|
|
|
|
(Loss)/income from discontinued operations, net of tax
|
|
|
(0.02
|
)
|
|
|
0.12
|
|
|
|
7.01
|
|
|
|
15.91
|
|
|
Net income (attributable to PPG)
|
|
$
|
0.61
|
|
|
$
|
1.80
|
|
|
$
|
15.20
|
|
|
$
|
22.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) - assuming dilution
|
|
|
Income from continuing operations, net of tax
|
|
$
|
0.62
|
|
|
$
|
1.66
|
|
|
$
|
8.10
|
|
|
$
|
6.55
|
|
|
|
(Loss)/income from discontinued operations, net of tax
|
|
|
(0.02
|
)
|
|
|
0.12
|
|
|
|
6.93
|
|
|
|
15.72
|
|
|
Net income (attributable to PPG)
|
|
$
|
0.60
|
|
|
$
|
1.78
|
|
|
$
|
15.03
|
|
|
$
|
22.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
|
|
|
137.3
|
|
|
|
140.8
|
|
|
|
138.3
|
|
|
|
143.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - assuming dilution
|
|
|
138.8
|
|
|
|
142.6
|
|
|
|
139.8
|
|
|
|
145.1
|
|
|
Note A:
|
|
|
|
Cost of sales, exclusive of depreciation and amortization includes
$21 million of flow-through cost of sales for the step-up to fair
value of inventory acquired in the Comex acquisition for the three
months ended December 31, 2014. For the year ended December 31,
2014, the caption includes $24 million of flow-through cost of sales
for the step-up to fair value of inventory acquired during the year.
The year ended December 31, 2013 includes $16 million of
flow-through cost of sales for the inventory step-up to fair value
related to 2013 acquisitions.
|
|
|
Selling, R&D and administrative expenses for the three months and
the year ended December 31, 2014 includes transaction-related
charges of $17 million and $24 million, respectively. For the three
months and the year ended December 31, 2013, the caption includes
transaction-related charges of $5 million and $20 million,
respectively.
|
|
|
|
|
|
Note B:
|
|
|
|
Other (income)/charges - net for the three months ended December
31, 2014 includes certain transaction-related costs totaling $14
million. The change in the year ended December 31, 2014 compared
to the year ended December 31, 2013 is primarily due to a gain
from an equity affiliate's sale of a business line and profit from
the sale of a North American flat glass manufacturing facility in
2014, partially offset by higher increases in legacy environmental
reserves in 2014.
|
|
|
|
|
|
Note C:
|
|
|
|
(Loss)/income from discontinued operations, net of tax includes the
historical operating results of PPG's former interest in the
Transitions Optical joint venture and sunlens business that were
sold March 31, 2014. The loss from discontinued operations of $3
million for the three months ended December 31, 2014 is due to a
change in estimated taxes related to the divestiture.
|
|
|
The three months and full year ended December 31, 2013 includes the
historical operating results of PPG's former interest in the
Transitions Optical joint venture and sunlens business as well as
PPG's former commodity chemicals business that was separated January
28, 2013.
|
|
|
|
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
The condensed statements of operations include the impact of items that
are not expected to recur ("non-recurring items") on a quarterly basis.
The tax benefit or expense related to these items are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended
|
|
|
Year ended
|
|
($ in millions)
|
|
December 31
|
|
|
December 31
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Tax expense on pre-tax earnings from continuing operations
includes tax benefits/(expense) related to the following:
|
|
|
|
Debt refinancing charge
|
|
$
|
117
|
|
$
|
-
|
|
|
$
|
117
|
|
|
$
|
-
|
|
|
Transaction-related costs
|
|
|
16
|
|
|
2
|
|
|
|
20
|
|
|
|
12
|
|
|
Tax benefit from favorable ruling on prior year matter
|
|
|
29
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
Increase to legacy environmental reserves
|
|
|
-
|
|
|
-
|
|
|
|
52
|
|
|
|
37
|
|
|
Asset divestitures
|
|
|
-
|
|
|
-
|
|
|
|
(43
|
)
|
|
|
-
|
|
|
U.S. pension plan settlement charge
|
|
|
-
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
Business restructuring
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
25
|
|
|
U.S. tax law change
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
Canadian pension plan settlement charge
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
Total
|
|
$
|
162
|
|
$
|
2
|
|
|
$
|
177
|
|
|
$
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of income tax includes
the following:
|
|
|
|
Net first quarter gain on divestiture of interest in Transitions
Optical joint venture and sunlens business
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
946
|
|
|
$
|
-
|
|
|
Net first quarter gain on separation of commodity chemicals business
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
2,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
BALANCE SHEET HIGHLIGHTS (unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
|
|
2014
|
|
2013 (b)
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
686
|
|
|
$
|
1,116
|
|
|
|
Short-term investments
|
|
|
|
|
497
|
|
|
|
629
|
|
|
|
Receivables - net
|
|
|
|
|
2,820
|
|
|
|
2,736
|
|
|
|
Inventories
|
|
|
|
|
1,825
|
|
|
|
1,824
|
|
|
|
Other
|
|
|
|
|
1,027
|
|
|
|
909
|
|
|
|
Total current assets
|
|
|
|
$
|
6,855
|
|
|
$
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
|
$
|
481
|
|
|
$
|
34
|
|
|
|
Asbestos settlement
|
|
|
|
|
821
|
|
|
|
763
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
3,559
|
|
|
|
3,338
|
|
|
|
Total current liabilities
|
|
|
|
$
|
4,861
|
|
|
$
|
4,135
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
$
|
3,544
|
|
|
$
|
3,372
|
|
|
|
|
|
|
|
|
|
|
|
PPG OPERATING METRICS (unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
|
|
2014
|
|
2013 (b)
|
|
Operating Working Capital (a)
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
$
|
2,453
|
|
|
$
|
2,643
|
|
|
|
As a percent of quarter sales, annualized
|
|
|
|
|
16.5
|
%
|
|
|
17.8
|
%
|
|
(a)
|
|
Operating working capital includes: (1) receivables from customers,
net of allowance for doubtful accounts, (2) inventories and (3)
trade liabilities.
|
|
|
|
|
|
(b)
|
|
All 2013 balances include PPG's former interest in the Transitions
Optical joint venture and sunlens business which were sold on March
31, 2014.
|
|
|
|
|
|
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
|
|
BUSINESS SEGMENT INFORMATION (unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
Three Months ended
|
|
Year ended
|
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Coatings
|
|
|
|
|
|
|
$
|
2,091
|
|
|
$
|
1,907
|
|
|
$
|
8,698
|
|
|
$
|
7,934
|
|
|
|
Industrial Coatings
|
|
|
|
|
|
|
|
1,344
|
|
|
|
1,329
|
|
|
|
5,552
|
|
|
|
5,264
|
|
|
|
Glass
|
|
|
|
|
|
|
|
272
|
|
|
|
264
|
|
|
|
1,110
|
|
|
|
1,067
|
|
|
|
TOTAL
|
|
|
|
|
|
|
$
|
3,707
|
|
|
$
|
3,500
|
|
|
$
|
15,360
|
|
|
$
|
14,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Coatings
|
|
|
|
|
|
|
$
|
239
|
|
|
$
|
202
|
|
|
$
|
1,205
|
|
|
$
|
1,043
|
|
|
|
Industrial Coatings
|
|
|
|
|
|
|
|
223
|
|
|
|
202
|
|
|
|
951
|
|
|
|
824
|
|
|
|
Glass
|
|
|
|
|
|
|
|
33
|
|
|
|
22
|
|
|
|
81
|
|
|
|
56
|
|
|
|
TOTAL
|
|
|
|
|
|
|
|
495
|
|
|
|
426
|
|
|
|
2,237
|
|
|
|
1,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items not allocated to segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt refinancing charge
|
|
|
|
|
|
|
|
(317
|
)
|
|
|
-
|
|
|
|
(317
|
)
|
|
|
-
|
|
|
|
Transaction-related costs
|
|
|
|
|
|
|
|
(52
|
)
|
|
|
(5
|
)
|
|
|
(62
|
)
|
|
|
(36
|
)
|
|
|
Business restructuring
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(98
|
)
|
|
|
Legacy items (Note A)
|
|
|
|
|
|
|
|
(5
|
)
|
|
|
(9
|
)
|
|
|
(49
|
)
|
|
|
(165
|
)
|
|
|
Interest expense, net of interest income
|
|
|
|
|
|
|
|
(33
|
)
|
|
|
(35
|
)
|
|
|
(137
|
)
|
|
|
(153
|
)
|
|
|
Other corporate expense
|
|
|
|
|
|
|
|
(67
|
)
|
|
|
(61
|
)
|
|
|
(256
|
)
|
|
|
(245
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
|
|
|
|
$
|
21
|
|
|
$
|
316
|
|
|
$
|
1,416
|
|
|
$
|
1,226
|
|
|
Note A:
|
|
|
|
The year ended December 31, 2014 includes a pre-tax gain of $116
million for the sale of a North American flat glass manufacturing
facility and an equity affiliate's sale of a business line as well
as a pre-tax charge of $138 million for an increase to legacy
environmental reserves. The year ended December 31, 2013 included
pre-tax charges of $101 million for an increase to legacy
environmental reserves and $18 million for final settlement of
certain legacy Canadian pension plans.
|
|
|
|
|
|
|
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.
|
|
|
|
Bringing innovation to the surface is a trademark of PPG
Industries Ohio, Inc.
Source: PPG Industries, Inc.
PPG Industries, Inc.
Media:
Mark Silvey, 412-434-3046
PPG
Corporate Communications
silvey@ppg.com
or
Investors:
Vince
Morales, 412-434-3740
PPG Investor Relations
vmorales@ppg.com