PPG Reports Fourth Quarter and Full-Year 2018 Financial Results
-
Fourth quarter net sales of approximately $3.6 billion, up about 2
percent versus prior year in constant currencies
-
Fourth quarter reported earnings per diluted share from continuing
operations of $1.07 and adjusted earnings per diluted share from
continuing operations of $1.15
-
Further progress made toward operating margin recovery on a
year-over-year basis led by additional selling price realization and
cost management
-
Achieved strategic cash deployment target including three recently
announced acquisitions and further share repurchases
PITTSBURGH--(BUSINESS WIRE)--
PPG (NYSE:PPG) today reported fourth quarter 2018 net sales of
approximately $3.6 billion, down 1 percent versus the prior year. Net
sales in constant currencies grew about 2 percent year-over-year aided
by higher selling prices of more than 2 percent. Sales volumes were down
1 percent versus the prior year in aggregate. Unfavorable foreign
currency translation impacted net sales by approximately 3 percent, or
about $110 million, and acquisition-related sales, net of divestitures,
added less than 1 percent to sales growth.
Fourth quarter 2018 reported net income from continuing operations was
$256 million, or $1.07 per diluted share. Adjusted net income from
continuing operations was $271 million, or $1.15 per diluted share.
Fourth quarter 2017 reported net income from continuing operations was
$148 million, or 58 cents per diluted share. Adjusted net income from
continuing operations was $305 million, or $1.19 per diluted share.
Reconciliations of the reported to adjusted figures are included below.
For the fourth quarter 2018, the effective tax rate was about 24 percent
and the adjusted effective tax rate was about 26 percent.
“In the fourth quarter, we delivered net sales growth in local
currencies of about 2 percent, led by higher selling prices marking
seven consecutive quarters of improved pricing,” said Michael H.
McGarry, PPG chairman and chief executive officer. “These price
increases, along with our ongoing cost management efforts, remain
focused on offsetting continued input cost inflation, as we made further
progress on recovering our operating margins toward prior-year levels.
Also impacting our sales were softening global economic growth and
demand declines in certain end-use markets.
“For the full year, we delivered adjusted earnings per diluted share
growth despite significant and persistent raw material and logistics
cost inflation, which impacted the entire coatings industry and rose
sequentially throughout much of the year. In addition to achieving
higher pricing, we aggressively managed our cost structure delivering
about $80 million of full-year cost savings, reaching the top-end of our
target. Strategically, during the past year, we announced six
acquisitions, including recent announcements of SEM, Whitford and
Hemmelrath.
“Our cash flow from operations remained strong, totaling about $1.5
billion for the year, which is consistent with 2017. We also continued
our legacy of returning cash to shareholders, with $2.2 billion returned
in 2018 through share repurchases and dividends,” McGarry continued.
“As we look ahead, while we remain confident we are well-positioned
strategically and financially, we enter 2019 with more global economic
uncertainty. The carryover impact from the first-half 2018 cost
inflation, significantly unfavorable year-over-year foreign currency
translation and modestly lower sales volumes will impact our performance
in the first half of 2019. As a result, we currently expect first
quarter earnings per diluted share to be in the range of $1.18 to $1.23.
We are focused on delivering increased financial results and will be
providing certain detailed information regarding our full year 2019
forecast and financial targets in a separate communication,” McGarry
concluded.
The company reported full-year cash from operations of about $1.5
billion. For the year, the company completed more than $1.7 billion of
share repurchases and paid about $450 million in dividends. Net capital
expenditures totaled about $410 million. The company ended the year with
approximately $5 billion of gross debt, and about $1.0 billion of cash
and short-term investments. The company had $1.8 billion remaining on
its current share repurchase authorizations at year-end 2018.
Fourth Quarter 2018 Reportable Segment Financial Results
-
Performance Coatings segment fourth quarter net sales were $2.1
billion, up $16 million, or nearly 1 percent, versus the prior year.
Sales in constant currencies increased by more than 3 percent driven
by higher selling prices. Acquisition-related sales were approximately
$15 million, including the acquisition of automotive refinish products
manufacturer SEM. Segment volumes were flat including the previously
announced customer assortment changes in the national retail
do-it-yourself (DIY) channel which reduced segment sales by
approximately two percent, or about $40 million year-over-year.
Unfavorable foreign currency translation lowered net sales by about
$55 million, or nearly 3 percent.
Aerospace coatings net
sales volumes grew by over 10 percent as a result of strong industry
demand and continued strong customer demand in each major region for
PPG’s technology advantaged products. Organic sales for automotive
refinish coatings were flat as unfavorable impacts from customer
inventory destocking in the U.S. were offset by growth in other
regions. Aggregate protective and marine coatings sales volumes
increased by a high-single-digit percentage, with positive
contributions from both end-use markets. Architectural coatings –
Americas and Asia-Pacific organic sales declined a low-single-digit
percentage year-over-year, with differences by channel and region. In
the U.S. and Canada, company-owned architectural stores grew same
store sales by a low-single-digit percentage. Aggregate volumes in the
DIY retail accounts and independent dealer channel declined
significantly versus the prior year, driven by the customer assortment
changes. Latin American architectural coatings organic sales volumes
grew by a mid-single-digit percentage, led by Mexico. Architectural
coatings – EMEA organic sales volumes increased by a mid-single-digit
percentage with contributions from both selling price increases and
volume growth.
Segment income for the fourth quarter was
$261 million, $2 million higher than the prior year fourth quarter
despite unfavorable foreign currency translation impacts of about $5
million. Segment income was aided by improving selling prices and cost
management, offset by raw material and logistics cost inflation and
the impact from lower sales volumes.
-
Industrial Coatings segment fourth quarter net sales were about $1.5
billion, down $53 million, or more than 3 percent, versus the
prior-year period. Higher selling prices of about 2 percent offset
lower sales volumes of about 2 percent. Unfavorable foreign currency
translation lowered sales by about $55 million, or more than 3
percent, versus the prior year.
Automotive original
equipment manufacturer (OEM) coatings sales volumes decreased by about
5 percent year-over-year, consistent with lower global automotive
industry production rates and driven by decreased automotive industry
demand in both China and Europe. Industrial coatings and specialty
coatings and materials sales volumes increased by a low-single-digit
percentage versus the prior year, as solid sales volume growth was
achieved in the U.S. and Canada offset by softer demand in
Asia-Pacific. Packaging coatings sales volumes also increased a
low-single-digit percentage year-over-year, adding to strong growth in
the prior year.
Segment income for the fourth quarter was
$187 million, down $27 million, or about 13 percent, year-over-year,
including unfavorable foreign currency translation impacts of about $5
million. Segment income was also impacted by continuing raw material
and logistics cost inflation and the sales impact of softening global
automotive OEM industry production rates, which were partially offset
by improving selling prices and aggressive cost management.
Full-Year 2018 Financial Results
Full-year 2018 reported net sales from continuing operations were
approximately $15.4 billion, up about 4 percent, versus the prior year,
including net favorable foreign currency translation of less than 1
percent, or approximately $105 million. Organic sales growth of about 3
percent versus the prior year was supplemented by acquisition-related
sales of nearly 1 percent.
The company’s 2018 full-year reported net income from continuing
operations was $1.3 billion, or $5.40 per diluted share, versus $1.4
billion, or $5.31 per diluted share, in 2017. Full-year 2018 adjusted
earnings per diluted share from continuing operations was $5.92 per
diluted share compared to $5.86 per diluted share in 2017. The effective
tax rate from continuing operations was about 21 percent for 2018,
versus 31 percent for 2017, and the adjusted effective tax rate from
continuing operations was about 22 percent for 2018, versus about 24
percent for 2017. The company’s global effective tax rate is expected to
be in the range of 23-to-25 percent for the year 2019.
A detailed reconciliation of the reported adjusted figures for the
fourth quarter and the full year is included below.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints,
coatings and materials that our customers have trusted for more than 130
years. Through dedication and creativity, we solve our customers’
biggest challenges, collaborating closely to find the right path
forward. With headquarters in Pittsburgh, we operate and innovate in
more than 70 countries and reported net sales of $15.4 billion in 2018.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.
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. 17. The
company will hold a conference call to review its fourth quarter and
full-year 2018 financial performance today at 2 p.m. ET. Participants
can pre-register for the conference by navigating to http://dpregister.com/10127722.
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. 17, beginning at approximately 4:30
p.m. ET, through Jan. 31 at 11:59 p.m. ET. The dial-in numbers for the
replay are: in the United States, 877-344-7529; international,
+1-412-317-0088; passcode 10127722. 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. 17, 2019, through Jan. 16, 2020.
Forward-Looking Statements
Statements continued 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 Industries’
operations, as discussed in the company’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 achieve selling price
increases, the ability to recover margins, customer inventory levels,
the ability to maintain favorable supplier relationships and
arrangements, the timing of realization of anticipated cost savings from
restructuring initiatives, the ability to identify additional cost
savings opportunities, 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, the unpredictability of existing and
possible future litigation, including asbestos litigation, and
governmental investigations. Such factors also include risks related to
the impact of the restatement disclosed in our amended 2017 Annual
Report on Form 10-K/A, including the impact on PPG’s reputation and
commercial contracts, our ability to successfully remediate the material
weakness in our internal control over financial reporting disclosed in
our amended Annual Report on Form 10-K/A within the time periods and in
the manner currently anticipated, the effectiveness of our internal
control over financial reporting, including the identification of
additional control deficiencies and further expenditures related to our
restatement. However, it is not possible to predict or identify all such
factors. Consequently, while the list of factors presented here and in
our amended Annual Report on Form 10-K/A 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, lower sales or earnings, 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.
All information in this release speaks only as of January 17, 2019, and
any distribution of this release after that date is not intended and
will not be construed as updating or confirming such information. PPG
Industries undertakes no obligation to update any forward-looking
statement, except as otherwise required by applicable law.
Regulation G Reconciliation
PPG believes investor’s understanding of the company’s operating
performance is enhanced by the disclosure of earnings per diluted share
from continuing operations and PPG’s effective tax rate from continuing
operations adjusted for certain items. 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 or that are
not attributable to our primary operations. Earnings per diluted share
from continuing operations and the effective tax rate from continuing
operations 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 earnings per diluted share, the effective tax rate or other
financial measures as computed in accordance with U.S. GAAP. In
addition, earnings per diluted share from continuing operations and the
adjusted effective tax rate from continuing operations may not be
comparable to similarly titled measures as reported by other companies.
| Regulation G Reconciliation - Net Income and Earnings per Diluted
Share |
($ in millions, except per-share amounts)
|
|
|
|
|
|
|
|
| Fourth Quarter |
| Fourth Quarter |
|
|
| 2018 | | 2017 |
|
|
| $ |
| EPS | | $ |
| EPS |
|
Reported net income from continuing operations
| |
$
|
256
| |
|
$
|
1.07
| | |
$
|
148
| |
|
$
|
0.58
|
|
Release of business restructuring reserves
| |
(7)
| | |
(0.03)
| | |
—
| | |
—
|
|
Transaction-related costs
| |
4
| | |
0.02
| | |
—
| | |
—
|
|
Brand rationalization charge
| |
4
| | |
0.02
| | |
—
| | |
—
|
|
Gain on the sale of non-operating assets
| |
(20)
| | |
(0.08)
| | |
(8)
| | |
(0.03)
|
|
Environmental remediation charges and other costs
| |
32
| | |
0.14
| | |
—
| | |
—
|
|
Accounting investigation costs
| |
2
| | |
0.01
| | |
—
| | |
—
|
|
Net tax charge for Tax Cuts and Jobs Act legislation
| |
—
| | |
—
| | |
134
| | |
0.52
|
|
Asset write-downs
| |
—
| | |
—
| | |
7
| | |
0.03
|
|
Pension settlement charges
| |
—
|
|
|
—
|
| |
24
|
|
|
0.09
|
|
Adjusted net income from continuing operations, excluding
non-recurring items
|
|
$
|
271
|
|
|
$
|
1.15
|
| |
$
|
305
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
| Full Year |
| Full Year |
|
|
| 2018 | | 2017 |
|
|
| $ |
| EPS | | $ |
| EPS |
|
Reported net income from continuing operations
| |
$
|
1,323
| |
|
$
|
5.40
| | |
$
|
1,369
| |
|
$
|
5.31
|
|
Net tax (benefit)/charge for Tax Cuts and Jobs Act legislation
| |
(13)
| | |
(0.05)
| | |
134
| | |
0.52
|
|
Environmental remediation charges and other costs
| |
58
| | |
0.24
| | |
—
| | |
—
|
|
Accounting investigation costs
| |
11
| | |
0.05
| | |
—
| | |
—
|
|
Impairment of a non-manufacturing asset
| |
7
| | |
0.03
| | |
—
| | |
—
|
|
Brand rationalization charge
| |
4
| | |
0.02
| | |
—
| | |
—
|
|
Transaction-related costs
| |
4
| | |
0.02
| | |
6
| | |
0.02
|
|
Gain from the sale of a business
| |
—
| | |
—
| | |
(24)
| | |
(0.09)
|
|
Gain on the sale of non-operating assets
| |
(20)
| | |
(0.08)
|
| |
(8)
| | |
(0.03)
|
|
Legacy legal settlements
| |
8
| | |
0.03
| | |
(11)
| | |
(0.04)
|
|
Costs related to a customer assortment change
| |
14
| | |
0.05
| | |
—
| | |
—
|
|
Business restructuring, net
| |
46
| | |
0.18
| | |
—
| | |
—
|
|
Accelerated depreciation from restructuring actions
| |
7
|
| |
0.03
| | |
—
| | |
—
|
|
Pension settlement charges
| |
—
| | |
—
| | |
38
| | |
0.14
|
|
Asset write-downs
| |
—
|
|
|
—
|
| |
7
|
|
|
0.03
|
|
Adjusted net income from continuing operations, excluding
non-recurring items
|
|
$
|
1,449
|
|
|
$
|
5.92
|
| |
$
|
1,511
|
|
|
$
|
5.86
|
|
|
|
|
|
|
|
| Fourth Quarter |
| Fourth Quarter |
|
|
| 2018 | | 2017 |
| | Income |
| |
| | | Income |
| |
| |
| | Before | | | | | | Before | | | | |
| | Income | | Tax | | Effective | | Income | | Tax | | Effective |
|
|
| Taxes |
| Expense |
| Tax Rate | | Taxes |
| Expense |
| Tax Rate |
|
Effective tax rate, continuing operations
| |
$
|
342
| | |
$
|
83
| | |
24.3
|
%
| |
$
|
377
| | |
$
|
224
| | |
59.4
|
%
|
|
Brand rationalization charge
| |
6
| | |
2
| | |
26.8
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Gain on the sale of non-operating assets
| |
(26)
| | |
(6)
| | |
24.3
|
%
| |
(13)
| | |
(5)
| | |
37.9
|
%
|
|
Accounting investigation costs
| |
3
| | |
1
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
Release of business restructuring reserves
| |
(5)
| | |
2
| | |
-44.5
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Environmental remediation charges and other costs
| |
43
| | |
11
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
Transaction-related costs
| |
6
| | |
2
| | |
25.5
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Asset write-downs
| |
—
| | |
—
| | |
—
|
%
| |
7
| | |
—
| | |
—
|
%
|
|
Net tax charge for Tax Cuts and Jobs Act legislation
| |
—
| | |
—
| | |
—
|
%
| |
—
| | |
(134)
| | |
N/A
| |
|
Pension settlement charges
| |
—
|
|
|
—
|
|
|
—
|
%
|
|
38
|
|
|
14
|
|
|
37.9
|
%
|
|
Adjusted effective tax rate, continuing operations, excluding
nonrecurring items
|
|
$
|
369
|
|
|
$
|
95
|
|
|
25.8
|
%
| |
$
|
409
|
|
|
$
|
99
|
|
|
24.2
|
%
|
|
|
|
|
|
|
|
| Full Year |
| Full Year |
|
|
| 2018 | | 2017 |
| | Income |
| |
| | | Income |
| |
| |
| | Before | | | | | | Before | | | | |
| | Income | | Tax | | Effective | | Income | | Tax | | Effective |
|
|
| Taxes |
| Expense |
| Tax Rate | | Taxes |
| Expense |
| Tax Rate |
|
Effective tax rate, continuing operations
| |
$
|
1,693
| | |
$
|
353
| | |
20.9
|
%
| |
$
|
2,005
| | |
$
|
615
| | |
30.7
|
%
|
Net tax benefit/(charge) for Tax Cuts and Jobs Act legislation
| |
—
| | |
13
| | |
N/A
| | |
—
| | |
(134)
| | |
N/A
| |
|
Accounting investigation costs
| |
14
| | |
3
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Costs related to a customer assortment change
| |
18
| | |
4
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Accelerated depreciation from restructuring actions
| |
9
| | |
2
| | |
22.2
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Transaction-related costs
| |
6
| | |
2
| | |
25.5
|
%
| |
9
| | |
3
| | |
37.9
|
%
|
|
Impairment of a non-manufacturing asset
| |
9
| | |
2
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Gain on the sale of non-operating assets
| |
(26)
| | |
(6)
| | |
24.3
|
%
| |
(13)
| | |
(5)
| | |
37.9
|
%
|
|
Gain on the sale of a business
| |
—
| | |
—
| | |
—
|
%
| |
(25)
| | |
(1)
| | |
3.2
|
%
|
|
Legacy legal settlements
| |
10
| | |
2
| | |
24.3
|
%
| |
(18)
| | |
(7)
| | |
37.9
|
%
|
Brand rationalization charge
| |
6
| | |
2
| | |
26.8
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Business restructuring, net
| |
66
| | |
20
| | |
30.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Environmental remediation charges and other costs
| |
77
| | |
19
| | |
24.3
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
Pension settlement charges
| |
—
| | |
—
| | |
—
|
%
| |
60
| | |
22
| | |
37.9
|
%
|
|
Asset write-downs
| |
—
|
|
|
—
|
|
|
—
|
%
|
|
7
|
|
|
—
|
|
|
—
|
%
|
|
Adjusted effective tax rate, continuing operations, excluding
nonrecurring items
|
|
$
|
1,882
|
|
|
$
|
416
|
|
|
22.1
|
%
| |
$
|
2,025
|
|
|
$
|
493
|
|
|
24.3
|
%
|
|
| |
| |
| |
| |
| PPG INDUSTRIES, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
|
(All amounts in millions except per-share data)
|
|
| | | | | |
| | |
Three Months Ended
| |
Twelve Months Ended
|
| | |
December 31
| |
December 31
|
| | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | As Restated | | | | As Restated |
|
Net sales
| |
$
|
3,645
| | |
$
|
3,682
| | |
$
|
15,374
| | |
$
|
14,748
| |
Cost of sales, exclusive of depreciation and amortization
| | |
2,188
| | | |
2,120
| | | |
9,001
| | | |
8,209
| |
|
Selling, general and administrative
| | |
855
| | | |
909
| | | |
3,573
| | | |
3,554
| |
|
Research and development - net
| | |
105
| | | |
116
| | | |
441
| | | |
451
| |
|
Depreciation
| | |
87
| | | |
86
| | | |
354
| | | |
331
| |
|
Amortization
| | |
40
| | | |
34
| | | |
143
| | | |
129
| |
|
Interest expense
| | |
30
| | | |
27
| | | |
118
| | | |
105
| |
|
Interest income
| | |
(5
|
)
| | |
(7
|
)
| | |
(23
|
)
| | |
(20
|
)
|
|
Business restructuring, net
| | |
(5
|
)
| | |
-
| | | |
66
| | | |
-
| |
|
Pension settlement charges
| | |
-
| | | |
38
| | | |
-
| | | |
60
| |
|
Other charges (income) - net (Note A) (Note B)
|
|
|
8
|
|
|
|
(18
|
)
|
|
|
8
|
|
|
|
(76
|
)
|
|
Income from continuing operations before income taxes
| | |
342
| | | |
377
| | | |
1,693
| | | |
2,005
| |
|
Income tax expense
|
|
|
83
|
|
|
|
224
|
|
|
|
353
|
|
|
|
615
|
|
|
Income from continuing operations, net of income taxes
| | |
259
| | | |
153
| | | |
1,340
| | | |
1,390
| |
|
Income from discontinued operations, net of income taxes
|
|
|
2
|
|
|
|
3
|
|
|
|
18
|
|
|
|
225
|
|
|
Net income attributable to the controlling and noncontrolling
interests
| | |
261
| | | |
156
| | | |
1,358
| | | |
1,615
| |
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
3
|
|
|
|
5
|
|
|
|
17
|
|
|
|
21
|
|
|
Net income (attributable to PPG)
|
|
$
|
258
|
|
|
$
|
151
|
|
|
$
|
1,341
|
|
|
$
|
1,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to PPG:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
256
| | |
$
|
148
| | |
$
|
1,323
| | |
$
|
1,369
| |
|
|
Income from discontinued operations, net of income tax
|
|
|
2
|
|
|
|
3
|
|
|
|
18
|
|
|
|
225
|
|
|
Net income (attributable to PPG)
|
|
$
|
258
|
|
|
$
|
151
|
|
|
$
|
1,341
|
|
|
$
|
1,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG)
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
1.07
| | |
$
|
0.59
| | |
$
|
5.43
| | |
$
|
5.34
| |
|
|
Income from discontinued operations, net of income tax
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.07
|
|
|
|
0.88
|
|
|
Net income (attributable to PPG)
|
|
$
|
1.08
|
|
|
$
|
0.60
|
|
|
$
|
5.50
|
|
|
$
|
6.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) - assuming dilution
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
1.07
| | |
$
|
0.58
| | |
$
|
5.40
| | |
$
|
5.31
| |
|
|
Income from discontinued operations, net of income tax
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.07
|
|
|
|
0.87
|
|
|
Net income (attributable to PPG)
|
|
$
|
1.08
|
|
|
$
|
0.59
|
|
|
$
|
5.47
|
|
|
$
|
6.18
|
|
| | | | | | | | |
|
|
Average shares outstanding
|
|
|
238.5
|
|
|
|
253.6
|
|
|
|
243.9
|
|
|
|
256.1
|
|
| | | | | | | | |
|
|
Average shares outstanding - assuming dilution
|
|
|
239.8
|
|
|
|
255.4
|
|
|
|
245.4
|
|
|
|
257.8
|
|
|
Note A:
|
|
|
Other charges during the three months ended December 31, 2018
includes an environmental remediation charge and other costs of $43
million offset by a gain from the sale of a non-operating asset of
$26 million. Other income for the three months ended December 31,
2017 includes a gain on the sale of a non-operating asset of $13
million.
|
|
Note B:
|
|
Other charges during the twelve months ended December 31, 2018
includes environmental remediation charges and other costs of $77
million offset by a gain on the sale of a non-operating asset of $26
million. Other income during the twelve months ended December 31,
2017 includes a gain from the sale of the Mexican Plaka business of
$25 million, a gain from a legal settlement of $18 million and a
gain from the sale of a non-operating asset of $13 million.
|
|
|
| | | |
| |
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | | | |
| CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) | | | |
|
($ in millions)
|
December 31
| |
December 31
|
|
| | | | 2018 | | 2017 |
|
Current assets:
| | | | | |
|
Cash and cash equivalents
| | |
$
|
902
| | |
$
|
1,436
| |
|
Short-term investments
| | | |
61
| | | |
55
| |
|
Receivables - net
| | | |
2,845
| | | |
2,903
| |
|
Inventories
| | | |
1,783
| | | |
1,730
| |
|
Other
| | |
|
370
|
|
|
|
353
|
|
|
Total current assets
| | |
$
|
5,961
|
|
|
$
|
6,477
|
|
| | | | | |
|
|
Current liabilities:
| | | | | |
|
Short-term debt and current portion of long-term debt
| |
$
|
651
| | |
$
|
12
| |
|
Accounts payable and accrued liabilities
| | | |
3,614
| | | |
3,781
| |
|
Restructuring reserves
| | |
|
99
|
|
|
|
102
|
|
|
Total current liabilities
| | |
$
|
4,364
|
|
|
$
|
3,895
|
|
| | | |
|
|
|
|
Long-term debt
| | |
$
|
4,365
|
|
|
$
|
4,134
|
|
| | | | | |
|
| | | | |
|
| PPG OPERATING METRICS (unaudited) | | | | | |
|
($ in millions)
| | |
December 31
| |
December 31
|
| | | | 2018 | | 2017 |
|
Operating Working Capital (a)
| | |
$
|
2,224
| | |
$
|
2,071
| |
|
As a percent of fourth quarter sales, annualized
| | | |
15.3
|
%
| | |
14.1
|
%
|
|
(a)
|
|
Operating working capital includes: (1) receivables from customers,
net of allowance for doubtful accounts, (2) FIFO inventories and (3)
trade liabilities.
|
| |
|
|
| |
| |
| |
| |
| PPG INDUSTRIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited) |
|
($ in millions)
| |
Three Months Ended
| |
Twelve Months Ended
|
|
| | |
December 31
| |
December 31
|
| | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | As Restated | | | | As Restated |
|
Net sales
| | | | | | | | |
|
Performance Coatings
| |
$
|
2,140
| | |
$
|
2,124
| | |
$
|
9,087
| | |
$
|
8,730
| |
|
Industrial Coatings
| |
|
1,505
|
|
|
|
1,558
|
|
|
|
6,287
|
|
|
|
6,018
|
|
|
Total
| |
$
|
3,645
|
|
|
$
|
3,682
|
|
|
$
|
15,374
|
|
|
$
|
14,748
|
|
| | | | | | | | |
|
|
Segment income
| | | | | | | | |
|
Performance Coatings
| |
$
|
261
| | |
$
|
259
| | |
$
|
1,300
| | |
$
|
1,313
| |
|
Industrial Coatings
| |
|
187
|
|
|
|
214
|
|
|
|
818
|
|
|
|
979
|
|
|
Total
| |
$
|
448
| | |
$
|
473
| | |
$
|
2,118
| | |
$
|
2,292
| |
| | | | | | | | |
|
|
Items not allocated to segments
| | | | | | | | |
|
Corporate
| | |
(54
|
)
| | |
(46
|
)
| | |
(146
|
)
| | |
(180
|
)
|
|
Legacy (Note A)
| | |
-
| | | |
2
| | | |
5
| | | |
(2
|
)
|
|
Interest expense, net of interest income
| | |
(25
|
)
| | |
(20
|
)
| | |
(95
|
)
| | |
(85
|
)
|
|
Gain from the sale of non-operating assets
| | |
26
| | | |
13
| | | |
26
| | | |
13
| |
|
Transaction-related costs
| | |
(6
|
)
| | |
-
| | | |
(6
|
)
| | |
(9
|
)
|
|
Environmental remediation charges and other costs
| | |
(43
|
)
| | |
-
| | | |
(77
|
)
| | |
-
| |
|
Business restructuring, net
| | |
5
| | | |
-
| | | |
(66
|
)
| | |
-
| |
|
Accounting investigation costs
| | |
(3
|
)
| | |
-
| | | |
(14
|
)
| | |
-
| |
|
Brand rationalization charge
| | |
(6
|
)
| | |
-
| | | |
(6
|
)
| | |
-
| |
|
Costs related to customer assortment change
| | |
-
| | | |
-
| | | |
(18
|
)
| | |
-
| |
|
Legacy legal settlements
| | |
-
| | | |
-
| | | |
(10
|
)
| | |
18
| |
|
Accelerated depreciation related to restructuring actions
| | |
-
| | | |
-
| | | |
(9
|
)
| | |
-
| |
|
Impairment of a non-manufacturing asset
| | |
-
| | | |
-
| | | |
(9
|
)
| | |
-
| |
|
Gain from the sale of the Mexican Plaka business
| | |
-
| | | |
-
| | | |
-
| | | |
25
| |
|
Pension settlement charges
| | |
-
| | | |
(38
|
)
| | |
-
| | | |
(60
|
)
|
|
Asset write-downs
| |
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
|
Income before income taxes
|
|
$
|
342
|
|
|
$
|
377
|
|
|
$
|
1,693
|
|
|
$
|
2,005
|
|
|
Note A:
|
|
|
Legacy items include current costs related to former operations of
the Company, including pension and other postretirement benefit
costs, certain charges and recoveries for legal matters and
environmental remediation costs, and certain other charges and
income which are not associated with PPG's current business
portfolio.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190117005306/en/
PPG Media Contact:
Mark Silvey
Corporate Communications
+1-412-434-3046
silvey@ppg.com
PPG Investor Contact:
John Bruno
Investor Relations
+1-412-434-3466
jbruno@ppg.com
investor.ppg.com
Source: PPG