-
Net sales of approximately $4.1 billion, up nearly 9 percent versus
prior year
-
Reported earnings per diluted share from continuing operations of $1.51
-
Second quarter adjusted earnings per diluted share from continuing
operations of $1.90, up nearly 6 percent from prior year, including
benefit of lower tax rate
-
Sales volume growth of more than 3 percent
-
Continued to achieve higher selling prices; partially offsetting
persistent raw material and heightened logistics cost inflation
-
Initiated new restructuring program targeting about $85 million in
annual cost savings
-
Share repurchases of about $460 million in the second quarter and $1.1
billion year to date
Company Website:
http://www.ppg.com
PITTSBURGH -- (Business Wire)
PPG (NYSE:PPG) today reported second quarter 2018 net sales of about
$4.1 billion, up nearly 9 percent versus the prior year. Net sales in
local currencies grew approximately 6 percent year-over-year aided by
higher selling prices of more than 2 percent, sales volume growth of
more than 3 percent and acquisition-related sales, net of divestitures,
of nearly 1 percent. Favorable foreign currency translation improved net
sales by more than 2 percent, or about $93 million.
Second quarter 2018 net income from continuing operations was $371
million, or $1.51 per diluted share. Second quarter 2018 adjusted net
income from continuing operations was $468 million, or $1.90 per diluted
share. Adjusted net income excludes after-tax charges for business
restructuring of $63 million, or 25 cents per diluted share; accelerated
depreciation associated with restructuring actions of $4 million, or 2
cents per diluted share; continued cost realignment following a
previously announced customer assortment change of $8 million, or 3
cents per diluted share; a legacy legal settlement of $8 million, or 3
cents per diluted share; an impairment of a non-manufacturing asset of
$7 million, or 3 cents per diluted share; and costs associated with the
Company’s recent accounting investigation of $7 million, or 3 cents per
diluted share. The reported and adjusted effective tax rates for the
quarter were approximately 22 percent. The company’s effective tax rate
is expected to vary from quarter to quarter, and is expected to be in
the range of 23-to-24 percent for the full year.
Second quarter 2017 net income from continuing operations was $497
million, or $1.92 per diluted share. Second quarter 2017 adjusted net
income from continuing operations was $465 million, or $1.80 per diluted
share. Adjusted net income excludes an after-tax gain from the sale of
the Mexican Plaka wallboard business of $24 million, or 9 cents per
diluted share; a benefit from a legacy legal settlement of $11 million,
or 4 cents per diluted share; and after-tax transaction-related costs of
$3 million, or 1 cent per diluted share. The reported and adjusted
effective tax rate for the quarter were about 24 percent.
“During the quarter, we delivered strong net sales growth in local
currencies of about 6 percent,” said Michael McGarry, PPG chairman and
chief executive officer. “This growth was achieved through solid volume
growth and higher selling prices. Our sales volumes grew more than 3
percent with solid contributions from both of our reporting segments
including higher activity in emerging regions. In Performance Coatings,
sales volumes grew nearly 4 percent year-over-year as above-market
growth was achieved in aerospace and automotive refinish, and U.S.
architectural company-owned stores delivered another strong quarter
achieving high-single-digit same-store sales growth. In Industrial
Coatings, sales volumes increased nearly 3 percent, led by above-market
growth in packaging coatings and continued growth in the automotive OEM
and general industrial coatings businesses.
“In the quarter, raw material and logistics costs continued to increase,
including the impacts of higher oil prices and the availability of
transportation. We are working diligently to offset these cost pressures
by collaborating with our customers on selling price initiatives, with
our pricing in the quarter increasing more than 2 percent
year-over-year. In addition, we initiated a new restructuring program in
response to a previously announced customer assortment change in our
U.S. architectural coatings business and to further offset cost
inflation. We expect that this new restructuring program will deliver
annualized savings of approximately $85 million upon full
implementation. These savings are in addition to the benefits we are
realizing from the restructuring program announced in December 2016.
Based on these actions, along with our continued focus on operational
excellence, we expect the pace of our margin recovery to accelerate in
the second half of 2018.
“As we look ahead, we currently do not anticipate any relief from
inflationary cost pressures in the third quarter. We expect aggregate
global economic growth to remain positive with end-use market activity
comparable to the second quarter, adjusted for traditionally lower
seasonal demand. However, uncertainties exist regarding global trade
policies, which may create uneven demand by region and in certain
industries. Specific to PPG, we expect that the previously announced
architectural customer assortment change will lower our third quarter
year-over-year sales volume growth rate by between 120 and 150 basis
points. We remain confident that our leading-edge technologies and
products, which are bringing value to our customers, will facilitate our
growth going forward,” McGarry said.
“Finally, we repurchased shares totaling nearly $1.1 billion during the
first half of 2018 including approximately $460 million in the second
quarter. Our acquisition pipeline remains active and we expect to
continue our earnings-accretive cash deployment in the second half of
2018. We are committed to deploying a total of $2.4 billion in 2018 on
acquisitions and share repurchases as we remain focused on shareholder
value creation,” McGarry concluded.
Second Quarter 2018 Reportable Segment Financial Results
-
Performance Coatings segment second quarter net sales were
approximately $2.5 billion, up $199 million, or 9 percent, versus the
prior year. Sales in local currencies increased by more than 6 percent
driven by higher selling prices and sales volumes. Favorable foreign
currency translation increased net sales by $55 million, or more than
2 percent.
Aerospace coatings sales volumes grew slightly
more than 10 percent due to continued strong customer demand for PPG
products in the U.S. and Asia-Pacific. Automotive refinish coatings
organic sales increased year-over-year by a mid-single-digit
percentage driven by above-market performance in the U.S. and Canada
and the emerging regions. Architectural coatings – Americas and
Asia-Pacific organic sales advanced a mid-single-digit percentage
year-over-year, with differences by channel and region. In the U.S.
and Canada, same store sales in company-owned architectural stores
grew by a high-single-digit percentage. Aggregate sales volumes in the
national retail (DIY) accounts and independent dealer channels
declined a low-single-digit percentage versus the prior year,
including the unfavorable partial quarter impact from a customer
assortment change. Latin American architectural coatings sales volumes
grew by a mid-single-digit percentage led by Mexico and Central
America. Architectural coatings – EMEA sales volumes declined a
low-single-digit percentage, in line with expected regional demand but
reflecting a sequential improvement over the first quarter. Aggregate
protective and marine coatings sales volumes increased by a
low-single-digit percentage, with positive contributions from both
end-use markets.
Segment income for the first quarter was
$428 million, 6 percent higher than the second quarter 2017, including
favorable foreign currency translation of $8 million. Segment income
grew due to improved sales volumes and higher selling prices,
partially offset by raw material and logistics cost inflation.
-
Industrial Coatings segment second quarter net sales were about $1.6
billion, up $128 million, or nearly 9 percent, versus the prior year.
Year-over-year sales volumes increased by nearly 3 percent, and
favorable foreign currency translation added about $40 million, or
less than 3 percent. Selling price increases continued to gain
momentum in the second quarter with a greater than a 1 percent
year-over-year improvement. Acquisition-related sales were
approximately $30 million, or about 2 percent.
Automotive
OEM coatings net sales volumes increased a low-single-digit
percentage, similar to overall global auto OEM industry builds.
General industrial coatings sales volumes posted solid sales volume
growth with above-market growth in Europe and emerging regions.
Packaging coatings sales volumes grew by a mid-single-digit percentage
year-over-year, with above-industry growth rates stemming from
continued customer adoption of new PPG technologies.
Segment
income for the second quarter was $223 million, down $41 million, or
16 percent, year-over-year, including favorable foreign currency
translation of $5 million. Segment income was lower due to elevated
raw material and logistics cost inflation, which was partly offset by
higher selling prices. Additional selling price initiatives have been
secured for the third quarter 2018.
Second quarter corporate expenses were lower due to decreased
compensation and benefit costs, including lower pension and other
post-employment benefit costs stemming from actions that the company has
taken in recent years.
A detailed reconciliation of the reported adjusted figures for the
second quarter 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 135 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 $14.7 billion in 2017. 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, July 19. The
company will hold a conference call to review its second quarter 2018
financial performance today at 2 p.m. ET. Participants can pre-register
for the conference by navigating tohttp://dpregister.com/10121641
to register. 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, July 19, beginning at approximately 4:30
p.m. ET, through August 2 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 10121641. 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, July 19, 2018, through July 18, 2019.
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, 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 July 19,
2018, and any distribution of this release after that date is not
intended and will not be construed as updating or confirming such
information. PPG undertakes no obligation to update any forward-looking
statement, except as otherwise required by applicable law.
Regulation G Reconciliation
PPG believes investors’ 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 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 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 (U.S. 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)
|
| | Second Quarter | | Second Quarter |
|
| 2018 |
| 2017 |
|
|
| $ |
| EPS |
| $ |
| EPS |
Reported income from continuing operations, net of income tax
(attributable to PPG)
| |
$
|
371
| |
|
$
|
1.51
| | |
$
|
497
| | |
|
$
|
1.92
| |
Costs related to a customer assortment change
| |
8
| | |
0.03
| | |
—
| | | |
—
| |
Business restructuring charge
| |
63
| | |
0.25
| | |
—
| | | |
—
| |
Accelerated depreciation from restructuring actions
| |
4
| | |
0.02
| | |
—
| | | |
—
| |
Accounting investigation costs
| |
7
| | |
0.03
| | |
—
| | | |
—
| |
Impairment of a non-manufacturing asset
| |
7
| | |
0.03
| | |
—
| | | |
—
| |
Legacy legal settlements
| |
8
| | |
0.03
| | |
(11
|
)
| | |
(0.04
|
)
|
Transaction-related costs
| |
—
| | |
—
| | |
3
| | | |
0.01
| |
Gain on sale of the Plaka business
| |
—
|
|
|
—
| | |
(24
|
)
|
|
|
(0.09
|
)
|
Adjusted net income from continuing operations, excluding
nonrecurring items
|
|
$
|
468
|
|
|
$
|
1.90
|
|
|
$
|
465
|
|
|
|
$
|
1.80
|
|
|
|
|
|
|
|
| Second Quarter | | Second 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
| |
$
|
479
| | |
$
|
104
| | |
21.7
|
%
|
|
$
|
659
| | |
|
$
|
157
| | |
|
23.8
|
%
|
Costs related to a customer assortment change
| |
10
| | |
2
| | |
24.3
|
%
| |
—
| | | |
—
| | | |
—
| |
Business restructuring charge
| |
83
| | |
20
| | |
24.2
|
%
| |
—
| | | |
—
| | | |
—
| |
Accelerated depreciation from restructuring actions
| |
5
| | |
1
| | |
23.8
|
%
| |
—
| | | |
—
| | | |
—
| |
Accounting investigation costs
| |
9
| | |
2
| | |
24.3
|
%
| |
—
| | | |
—
| | | |
—
| |
Impairment of a non-manufacturing asset
| |
9
| | |
2
| | |
24.3
|
%
| |
—
| | | |
—
| | | |
—
| |
Legacy legal settlements
| |
10
| | |
2
| | |
24.3
|
%
| |
(18
|
)
|
| |
(7
|
)
|
| |
37.9
|
%
|
Transaction-related costs
| |
—
| | |
—
| | |
—
| | |
5
| | | |
2
| | | |
37.9
|
%
|
Gain on sale of Plaka business
| |
—
|
|
|
—
|
|
|
—
|
| |
(25
|
)
|
|
|
(1
|
)
|
|
|
3.2
|
%
|
Adjusted effective tax rate, continuing operations, excluding
nonrecurring items
|
|
$
|
605
|
|
|
$
|
133
|
|
|
22.0
|
%
|
|
$
|
621
|
|
|
|
$
|
151
|
|
|
|
24.3
|
%
|
|
| |
| |
| |
| |
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
(All amounts in millions except per-share data)
|
| | |
Three Months Ended
| |
Six Months Ended
|
| | |
June 30
| |
June 30
|
| | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | As Restated | | | | As Restated |
Net sales
| |
$
|
4,131
| | |
$
|
3,804
| | |
$
|
7,912
| | |
$
|
7,290
| |
Cost of sales, exclusive of depreciation and amortization
| | |
2,379
| | | |
2,083
| | | |
4,560
| | | |
3,985
| |
Selling, general and administrative
| | |
945
| | | |
876
| | | |
1,851
| | | |
1,751
| |
Research and development - net
| | |
114
| | | |
112
| | | |
226
| | | |
221
| |
Depreciation
| | |
91
| | | |
81
| | | |
178
| | | |
160
| |
Amortization
| | |
34
| | | |
32
| | | |
70
| | | |
63
| |
Interest expense
| | |
31
| | | |
26
| | | |
57
| | | |
51
| |
Interest income
| | |
(7
|
)
| | |
(4
|
)
| | |
(12
|
)
| | |
(8
|
)
|
Business restructuring charge
| | |
83
| | | |
-
| | | |
83
| | | |
-
| |
Pension settlement charge
| | |
-
| | | |
-
| | | |
-
| | | |
22
| |
Other income - net (Note A)
|
|
|
(18
|
)
|
|
|
(61
|
)
|
|
|
(1
|
)
|
|
|
(60
|
)
|
Income from continuing operations before income taxes
| | |
479
| | | |
659
| | | |
900
| | | |
1,105
| |
Income tax expense
|
|
|
104
|
|
|
|
157
|
|
|
|
191
|
|
|
|
267
|
|
Income from continuing operations, net of income taxes
| | |
375
| | | |
502
| | | |
709
| | | |
838
| |
Income from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
5
|
|
Net income attributable to controlling and noncontrolling interests
| | |
375
| | | |
501
| | | |
715
| | | |
843
| |
|
Less: Net income attributable to noncontrolling interests
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
(10
|
)
|
Net income (attributable to PPG)
|
|
$
|
371
|
|
|
$
|
496
|
|
|
$
|
705
|
|
|
$
|
833
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to PPG:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
371
| | |
$
|
497
| | |
$
|
699
| | |
$
|
828
| |
|
Income from discontinued operations, net of income tax
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
5
|
|
Net income (attributable to PPG)
|
|
$
|
371
|
|
|
$
|
496
|
|
|
$
|
705
|
|
|
$
|
833
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG)
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
1.51
| | |
$
|
1.93
| | |
$
|
2.83
| | |
$
|
3.22
| |
|
Income from discontinued operations, net of income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.02
|
|
Net income (attributable to PPG)
|
|
$
|
1.51
|
|
|
$
|
1.93
|
|
|
$
|
2.85
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (attributable to PPG) - assuming dilution
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income tax
| |
$
|
1.51
| | |
$
|
1.92
| | |
$
|
2.81
| | |
$
|
3.19
| |
|
Income from discontinued operations, net of income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.02
|
|
Net income (attributable to PPG)
|
|
$
|
1.51
|
|
|
$
|
1.92
|
|
|
$
|
2.83
|
|
|
$
|
3.21
|
|
| | | | | | | | |
|
Average shares outstanding
|
|
|
244.9
|
|
|
|
257.1
|
|
|
|
247.4
|
|
|
|
257.4
|
|
| | | | | | | | |
|
Average shares outstanding - assuming dilution
|
|
|
246.4
|
|
|
|
259.0
|
|
|
|
248.9
|
|
|
|
259.3
|
|
Note A:
|
|
Other income during the three and six months ended June 30, 2017
includes a pre-tax gain of $25 million on the sale of the Mexican
Plaka business and income of $18 million from a legal settlement.
|
|
|
|
| |
| |
| |
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) |
($ in millions)
|
| | |
June 30
| |
December 31
| |
June 30
|
| | | 2018 | | 2017 | | 2017 (a) |
| | | | | | | As Restated |
Current assets:
| | | | | | |
|
Cash and cash equivalents
| |
$
|
1,020
| |
$
|
1,436
| |
$
|
1,569
| |
|
Short-term investments
| | |
63
| | |
55
| | |
48
| |
|
Receivables - net
| | |
3,438
| | |
2,903
| | |
3,191
| |
|
Inventories
| | |
1,956
| | |
1,730
| | |
1,766
| |
|
Assets held for sale
| | |
-
| | |
-
| | |
177
| |
|
Other
| |
|
402
|
|
|
353
|
|
|
390
|
|
|
Total current assets
| |
$
|
6,879
|
|
$
|
6,477
|
|
$
|
7,141
|
|
Current liabilities:
| | | | | | |
|
Short-term debt and current portion of long-term debt
| |
$
|
22
| |
$
|
12
| |
$
|
619
| |
|
Accounts payable and accrued liabilities
| | |
3,893
| | |
3,781
| | |
3,656
| |
|
Restructuring reserves
| | |
132
| | |
102
| | |
115
| |
|
Liabilities held for sale
| |
|
-
|
|
|
-
|
|
|
54
|
|
|
Total current liabilities
| |
$
|
4,047
|
|
$
|
3,895
|
|
$
|
4,444
|
|
| | |
|
|
|
|
|
Long-term debt
| |
$
|
5,048
|
|
$
|
4,134
|
|
$
|
3,998
|
|
(a)
|
|
Assets and liabilities of PPG's former Glass segment are classified
as held for sale as of June 30, 2017. The North American fiber glass
business was sold on September 1, 2017.
|
| |
|
|
| |
| |
| |
PPG OPERATING METRICS (unaudited) |
($ in millions)
|
| | |
June 30
| |
December 31
| |
June 30
|
| | | 2018 | | 2017 | | 2017 (b) |
| | | | | | | As Restated |
|
Operating Working Capital (a)
| |
$
|
2,699
| |
$
|
2,071
| |
$
|
2,466
|
|
As a percent of quarter sales, annualized
| | |
16.3%
| | |
14.1%
| | |
16.2%
|
(a)
|
|
Operating working capital includes: (1) receivables from customers,
net of allowance for doubtful accounts, (2) FIFO inventories and (3)
trade liabilities.
|
(b)
| |
Assets and Liabilities held for sale have been excluded.
|
| |
|
|
| |
| |
| |
| |
PPG INDUSTRIES, INC. AND SUBSIDIARIES |
CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited) |
($ in millions)
|
| | |
Three Months Ended
| |
Six Months Ended
|
| | |
June 30
| |
June 30
|
| | | 2018 | | 2017 | | 2018 | | 2017 |
| | | | | As Restated | | | | As Restated |
Net sales
| | | | | | | | |
|
Performance Coatings
| |
$
|
2,498
| | |
$
|
2,299
| | |
$
|
4,658
| | |
$
|
4,316
| |
|
Industrial Coatings
| |
|
1,633
|
|
|
|
1,505
|
|
|
|
3,254
|
|
|
|
2,974
|
|
|
Total
| |
$
|
4,131
|
|
|
$
|
3,804
|
|
|
$
|
7,912
|
|
|
$
|
7,290
|
|
Segment income
| | | | | | | | |
|
Performance Coatings
| |
$
|
428
| | |
$
|
405
| | |
$
|
708
| | |
$
|
689
| |
|
Industrial Coatings
| |
|
223
|
|
|
|
264
|
|
|
|
462
|
|
|
|
540
|
|
|
Total
| |
$
|
651
| | |
$
|
669
| | |
$
|
1,170
| | |
$
|
1,229
| |
Items not allocated to segments
| | | | | | | | |
|
Corporate
| | |
(23
|
)
| | |
(27
|
)
| | |
(66
|
)
| | |
(88
|
)
|
|
Interest expense, net of interest income
| | |
(24
|
)
| | |
(22
|
)
| | |
(45
|
)
| | |
(43
|
)
|
|
Legacy (Note A)
| | |
1
| | | |
1
| | | |
5
| | | |
(5
|
)
|
|
Business restructuring charge
| | |
(83
|
)
| | |
-
| | | |
(83
|
)
| | |
-
| |
|
Accelerated depreciation related to restructuring actions
| | |
(5
|
)
| | |
-
| | | |
(5
|
)
| | |
-
| |
|
Legacy legal settlements
| | |
(10
|
)
| | |
18
| | | |
(10
|
)
| | |
18
| |
|
Accounting investigation costs
| | |
(9
|
)
| | |
-
| | | |
(9
|
)
| | |
-
| |
|
Impairment of a non-manufacturing asset
| | |
(9
|
)
| | |
-
| | | |
(9
|
)
| | |
-
| |
|
Costs related to customer assortment change
| | |
(10
|
)
| | |
-
| | | |
(14
|
)
| | |
-
| |
|
Environmental remediation charges
| | |
-
| | | |
-
| | | |
(34
|
)
| | |
-
| |
|
Gain on sale of Mexican Plaka business
| | |
-
| | | |
25
| | | |
-
| | | |
25
| |
|
Transaction-related costs
| | |
-
| | | |
(5
|
)
| | |
-
| | | |
(9
|
)
|
|
Pension settlement charge
| |
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(22
|
)
|
Income before income taxes
|
|
$
|
479
|
|
|
$
|
659
|
|
|
$
|
900
|
|
|
$
|
1,105
|
|
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/20180719005188/en/
Contacts:
PPG Media Contact:
Mark Silvey, +1-412-434-3046
Corporate
Communications
silvey@ppg.com
or
PPG
Investor Contact:
John Bruno, +1-412-434-3466
Investor
Relations
jbruno@ppg.com
investor.ppg.com
Source: PPG
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