- Fourth quarter net sales of
approximately $3.7 billion, up about 8 percent versus prior
year
- Fourth quarter reported earnings per
diluted share from continuing operations of $0.72 and adjusted
earnings per diluted share from continuing operations of $1.19
- Sales volume growth of 3 percent in the
fourth quarter versus prior year
- Share repurchases of $400 million in
the fourth quarter and slightly more than $800 million for the
year
- Strong financial flexibility with
approximately $1.5 billion of cash and short-term investments at
year-end
- Commitment to deploy at least $2.4
billion on acquisitions and share repurchases in 2018
PPG (NYSE:PPG) today reported fourth quarter 2017 net sales of
approximately $3.7 billion, up nearly 8 percent versus the prior
year. Sales volumes increased by 3 percent year-over-year and
selling prices improved sequentially for the third consecutive
quarter, adding less than 1 percent to sales growth. Favorable
foreign currency translation improved net sales by more than 3
percent, or about $115 million, and acquisitions-related sales, net
of divestitures, added less than 1 percent to sales growth.
Fourth quarter 2017 reported net income from continuing
operations was $184 million, or 72 cents per diluted share,
including an unfavorable impact of 5 cents per diluted share
stemming from the natural disasters that occurred in the third
quarter. Adjusted net income from continuing operations was $304
million, or $1.19 per diluted share. Adjusted net income excludes
net after-tax charges totaling $120 million, or 47 cents per
diluted share. These net after-tax charges include: $97 million net
charge related to the new U.S. Tax Cuts and Jobs Act legislation;
$24 million for pension settlement charges; and $7 million for
asset write-downs, partially offset by an $8 million gain from the
sale of a non-operating asset. The net tax charge reflects the
company’s current best estimate of the new legislation’s impact. As
new information becomes available, including issuance of
interpretations by regulatory bodies, the company may update this
estimate. For the fourth quarter 2017, the effective tax rate was
49.7 percent and the adjusted effective tax rate was 24.3 percent.
For the full year, the adjusted effective tax rate was 24.4
percent. With the enactment of the U.S. Tax Cuts and Jobs Act
legislation, the company’s global effective tax rate is expected to
be in the range of 23-to-24 percent for the year 2018.
Fourth quarter 2016 reported net income from continuing
operations was $91 million, or 34 cents per diluted share. Adjusted
net income from continuing operations was $306 million, or $1.16
per diluted share. Adjusted net income excludes net after-tax
charges totaling $215 million, or 82 cents per diluted share. These
net after-tax charges include: $144 million for business
restructuring; $51 million for increases to legacy environmental
reserves; $23 million for higher tax expense related to asbestos
settlement funding; and $5 million for a premium on the early
retirement of debt, partially offset by an $8 million net gain on
the disposals of ownership interests in business affiliates. For
the fourth quarter 2016, the effective tax rate was 31.2 percent
and the adjusted effective tax rate was 24.4 percent.
“In the fourth quarter, we delivered solid and balanced sales
growth in each major region, and both reporting segments achieved
at least 2 percent sales volume growth,” said Michael H. McGarry,
PPG chairman and chief executive officer. “Additionally, our
aggregate selling prices improved for the third consecutive quarter
as we made continued progress on our margin recovery efforts,
despite higher than anticipated raw material inflation in the
quarter driven by ongoing supply-related issues, including
production curtailments from additional environmental enforcement
in China.
“Our Performance Coatings segment delivered its highest sales
volume growth of the year, growing more than 2 percent aided by
continued above-market performance in automotive refinish coatings,
strengthening aerospace growth and solid mid-single-digit
percentage volume growth in our U.S. company-owned architectural
coatings stores. Industrial Coatings maintained a mid-single-digit
percentage sales volume growth rate, once again well outpacing
global industrial production, led by our general industrial and
packaging coatings businesses,” McGarry said.
“For the full year, we delivered adjusted earnings per diluted
share growth despite repeated disruptions to the coatings industry
supply chain that resulted in significant coatings raw material
inflation. We continued our legacy of aggressively managing our
cost structure and delivered $50 million of full year cost savings
from our 2016 restructuring program, achieving the top-end of our
target. Strategically, during 2017 we completed our multi-year
portfolio transformation with the sale of the U.S. fiber glass
business, our last remaining non-core business, and continued our
earnings-accretive focused cash deployment.
“Our cash flow from operations was excellent, totaling over $1.5
billion for the year, including the benefit from improved operating
working capital ratios. We also continued our heritage of returning
cash to shareholders, with more than $1.2 billion returned in 2017
via share repurchases and dividends. We remain proud that PPG has
paid annual dividends for 118 consecutive years, and increased
per-share payouts for 46 consecutive years, including a 13%
per-share increase in July.” McGarry continued.
“Looking ahead, we are well positioned to benefit from
broadening and more synchronized global economic growth due to our
geographic reach, excellent product portfolio, and advanced
customer technologies, McGarry said. We expect minimal abatement in
the first half of the year to the high level of raw material
inflation that the coatings industry is experiencing. We will
continue to work with our customers to address the inflationary
environment and expect to realize additional selling price
increases in 2018. Finally, we continue to have strong financial
flexibility and are committed to deploy a minimum of $2.4 billion
of cash in 2018 on acquisitions and share repurchases as part of
our previously communicated target to deploy $3.5 billion in 2017
and 2018 combined,” McGarry concluded.
The company reported year-end 2017 cash and short-term
investments of approximately $1.5 billion. Also, PPG had $3.6
billion remaining on its current share repurchase authorizations at
year-end 2017, including a $2.5 billion authorization approved by
PPG’s Board of Directors in December.
Fourth Quarter 2017 Reportable Segment Financial
Results
- Performance Coatings segment fourth
quarter net sales were $2.1 billion, up $144 million, or more than
7 percent, versus the prior year. Net sales benefited from higher
selling prices across most businesses and regions, and segment
sales volume growth of more than 2 percent. Favorable foreign
currency translation increased net sales by about $67 million, or
over 3 percent.Automotive refinish coatings organic sales improved
by a mid-single-digit percentage driven by market outperformance in
the U.S. and Europe, and strong emerging region demand. Aerospace
coatings sales volumes growth accelerated with a mid-single-digit
percentage gain over the prior year period, aided by improving
demand in the U.S. and Asia. Architectural coatings – Americas and
Asia Pacific sales volumes advanced a low single-digit percentage
year-over-year, with differences by channel and region. In the U.S.
and Canada, company-owned architectural same store sales grew by a
solid mid-single-digit percentage, while aggregate sales volumes in
national retail (DIY) accounts and independent dealer networks were
flat to the prior year period. Latin American architectural
coatings sales volumes were flat versus the prior year, as growing
end-use market demand was offset by lingering unfavorable impacts
of the Mexican earthquakes. Architectural coatings – EMEA sales
volumes were consistent with the prior year, an improvement versus
the third quarter, as results remained mixed by country. Aggregate
protective and marine coatings sales volumes were flat
year-over-year, with protective coatings sales growth offsetting
moderating marine coatings contraction.Segment income for the
fourth quarter was $260 million, up $21 million, or about 9
percent, year-over-year, including favorable foreign currency
translation of $6 million. Segment income improved year-over-year
aided by the impact of higher sales volumes, overhead and
manufacturing cost management and improving selling prices,
partially offset by significant raw material inflation.
- Industrial Coatings segment fourth
quarter net sales were about $1.6 billion, up $121 million, or more
than 8 percent, versus the prior-year period. Sales volumes
increased by more than 4 percent and favorable foreign currency
translation added nearly $46 million, or about 3 percent, versus
the prior year. Selling prices were modestly lower year-over-year,
but improved sequentially versus the third quarter.
Acquisition-related sales added $27 million in sales, or about 2
percent year-over-year.Automotive original equipment manufacturer
(OEM) coatings sales volumes increased by a low-single-digit
percentage year-over-year, consistent with global automotive
industry production rates. Aggregate industrial coatings and
specialty coatings and materials sales volumes increased by a
mid-single-digit percentage versus the prior year and outpaced
global industrial production growth rates for the eighth
consecutive quarter, as the company achieved higher sales volumes
in each major region and in many end-use markets. Packaging
coatings sales volumes accelerated to a high-single-digit
percentage year-over-year growth rate, with above industry growth
rates in most regions stemming from customer adoption of new PPG
technologies.Segment income for the fourth quarter was $212
million, down $24 million, or about 10 percent, year-over-year.
Segment income was lower as aggressive cost improvements and strong
sales volume growth did not fully offset significant raw material
inflation and modestly lower selling price. Progress was made on
selling price initiatives in the fourth quarter sequentially, with
further progress expected in the first half of 2018. Favorable
foreign currency translation aided segment income by $6
million.
Full-Year 2017 Financial Results
Full-year 2017 reported net sales from continuing operations
were approximately $14.8 billion, up more than 3 percent, versus
the prior year, including favorable foreign currency translation of
less than 1 percent, or approximately $55 million. Organic sales
growth of 1.5 percent versus the prior year was supplemented by
acquisition-related sales growth of more than 1 percent.
The company’s 2017 full-year reported net income from continuing
operations was $1.4 billion, or $5.46 per diluted share. Full-year
2017 adjusted earnings per diluted share from continuing operations
was $5.87 per diluted share, representing an increase of nearly 4
percent year-over-year. Adjusted net income excludes net after-tax
charges totaling $105 million, or $0.41 per diluted share. These
net after-tax charges include: $97 million net charge related to
the new U.S. Tax Cuts and Jobs Act legislation; $38 million for
pension settlement charges; $7 million for asset write-downs; and
$6 million for transaction-related costs, partially offset by a $24
million gain from the sale of the Mexican Plaka wallboard business;
an $11 million benefit from a legal settlement, and an $8 million
gain from the sale of a non-operating asset. In 2017, foreign
currency translation unfavorably impacted pre-tax income by $7
million. The effective tax rate from continuing operations was 28.8
percent for 2017 and the adjusted effective tax rate from
continuing operations was 24.4 percent for 2017
The company’s 2016 full-year reported net income from continuing
operations was $547 million, or $2.05 per diluted share. Full-year
2016 adjusted earnings per diluted share from continuing operations
was $5.67 per diluted share. Adjusted net income excludes net
after-tax charges totaling $959 million, or $3.62 per diluted
share. These net after-tax charges include: $616 million for
pension settlement charges; $151 million for a net tax charge
related to asbestos settlement funding; $144 million for business
restructuring; $51 million charge for increases to legacy
environmental reserves; $17 million for asset write-downs; $5
million for transaction-related costs; and $5 million for a premium
on the early retirement of debt, partially offset by a $30 million
net gain on the disposals of ownership interests in business
affiliates. The effective tax rate from continuing operations was
27.6 percent for 2016 and the adjusted effective tax rate from
continuing operations was 24.6 percent for 2016.
A detailed reconciliation of the reported to 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
$14.8 billion in 2017. We serve customers in construction, consumer
products, industrial and transportation markets and aftermarkets.
To learn more, visit www.ppg.com.
We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.
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. 18. The
company will hold a conference call to review its fourth quarter
and full year 2017 financial performance today at 2 p.m. ET.
Participants can pre-register for the conference by navigating to
http://dpregister.com/10115355. 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 18, beginning at approximately
4:30 p.m. ET, through Feb. 1 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 10115355. 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. 18, 2018,
through Jan. 17, 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 ongoing impacts of the natural disasters
described herein and their length and severity, any currently
unanticipated future impacts from the natural disasters, 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, 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 asbestos litigation. However, it is not possible to
predict or identify all such factors. Consequently, while the list
of factors presented here and in PPG Industries’ 2016 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,
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
Industries’ consolidated financial condition, results of operations
or liquidity. All information in this release speaks only as of
January 18, 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 Industries 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 (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 2017 2016
$ EPS $ EPS Reported net
income from continuing operations $ 184 $ 0.72 $ 91 $
0.34 Net tax charge for Tax Cuts and Jobs Act legislation 97 0.38 —
— Pension settlement charges 24 0.09 — — Gain on sale of a
non-operating asset (8 ) (0.03 ) — — Asset write-downs 7 0.03 — —
Business restructuring charge — — 144 0.55 Environmental
remediation charge — — 51 0.20 Net tax effect of asbestos
settlement trust funding — — 23 0.09 Premium on early retirement of
debt — — 5 0.02 Net gain on disposals of ownership interests in
business affiliates — — (8 ) (0.04 )
Adjusted net income from continuing operations, excluding
non-recurring items $ 304 $ 1.19
$ 306 $ 1.16
Full Year Full Year 2017
2016 $ EPS $
EPS Reported net income from continuing operations $
1,408 $ 5.46 $ 547 $ 2.05 Net tax charge for Tax Cuts and Jobs Act
legislation 97 0.38 — — Pension settlement charges 38 0.14 616 2.31
Asset write-downs 7 0.03 17 0.06 Transaction-related costs 6 0.02 5
0.03 Gain from sale of business (24 ) (0.09 ) — — Gain from legal
settlement (11 ) (0.04 ) — — Gain on sale of a non-operating asset
(8 ) (0.03 ) — — Net tax effect of asbestos settlement trust
funding — — 151 0.57 Business restructuring charge — — 144 0.55
Environmental remediation charge — — 51 0.20 Premium on early
retirement of debt — — 5 0.02 Net gain on disposals of ownership
interests in business affiliates — — (30 )
(0.12 ) Adjusted net income from continuing operations,
excluding non-recurring items $ 1,513 $ 5.87
$ 1,506 $ 5.67
Fourth Quarter Fourth
Quarter 2017 2016 Income
Income Before
Before Income Tax Effective
Income Tax Effective
Taxes Expense Tax Rate
Taxes Expense Tax Rate Effective
tax rate, continuing operations $ 376 $ 187 49.7 % $ 138 $ 43 31.2
% Net tax charge for Tax Cuts and Jobs Act legislation — (97 ) N/A
— — — Pension settlement charges 38 14 36.8 % — — — Gain on sale of
a non-operating asset (13 ) (5 ) 37.9 % — — — Asset write-downs 7 —
— — — — Business restructuring charge — — — 195 51 25.8 %
Environmental remediation charge — — — 82 31 37.6 % Net tax effect
of asbestos settlement trust funding — — — — (23 ) N/A Premium on
early retirement of debt — — — 8 3 37.6 % Net gain on disposals of
ownership interests in business affiliates — —
— (13 ) (5 ) 38.5 % Adjusted effective
tax rate, continuing operations, excluding nonrecurring items
$ 408 $ 99 24.3 % $ 410
$ 100 24.4 %
Full Year Full Year
2017 2016 Income Income Before
Before Income Tax Effective
Income Tax Effective
Taxes Expense Tax Rate
Taxes Expense Tax Rate Effective
tax rate, continuing operations $ 2,008 $ 579 28.8 % $ 786 $ 217
27.6 % Net tax charge for Tax Cuts and Jobs Act legislation — (97 )
N/A — — — Pension settlement charges 60 22 36.7 % 968 352 36.4 %
Asset write-downs 7 — — % 23 7 30.4 % Transaction-related costs 9 3
37.9 % 8 3 37.6 % Gain from sale of business (25 ) (1 ) 3.2 % — — —
Gain from legal settlement (18 ) (7 ) 37.9 % — — — Gain on sale of
a non-operating asset (13 ) (5 ) 37.9 % — — — Net tax effect of
asbestos settlement trust funding — — — — (151 ) N/A Business
restructuring charge — — — 195 51 25.8 % Environmental remediation
charge — — — 82 31 37.6 % Premium on early retirement of debt — — —
8 3 37.6 % Net gain on disposals of ownership interests in business
affiliates — — — (46 )
(16 ) 34.8 % Adjusted effective tax rate, continuing
operations, excluding nonrecurring items $ 2,028
$ 494 24.4 % $ 2,024 $ 497
24.6 %
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
2017
2016
2017
2016
Net sales $ 3,682 $ 3,417 $ 14,750 $ 14,270 Cost of sales,
exclusive of depreciation and amortization 2,117 1,910 8,204 7,693
Selling, general and administrative 912 861 3,570 3,581 Research
and development - net 116 115 453 459 Depreciation 86 79 331 319
Amortization 34 30 129 121 Interest expense 27 29 105 125 Interest
income (7 ) (6 ) (20 ) (26 ) Asbestos settlement - net - - - 5
Pension settlement charge 38 - 60 968 Business restructuring charge
- 195 - 195 Other (income) charges - net (Note A) (17
) 66 (90 ) 44 Income from
continuing operations before income taxes 376 138 2,008 786 Income
tax expense 187 43
579 217 Income from continuing operations, net
of income taxes 189 95 1,429 569 Income from discontinued
operations, net of income taxes - 253
220 330 Net income
attributable to the controlling and noncontrolling interests 189
348 1,649 899 Less: Net income attributable to
noncontrolling interests (5 ) (4 )
(21 ) (22 ) Net income (attributable to PPG) $
184 $ 344 $ 1,628 $ 877
Amounts
attributable to PPG:
Income from continuing operations, net of income tax $ 184 $ 91 $
1,408 $ 547 Income from discontinued operations, net of
income tax - 253
220 330 Net income (attributable to PPG)
$ 184 $ 344 $ 1,628 $ 877
Earnings
per common share (attributable to PPG)
Income from continuing operations, net of income tax
$ 0.73 $ 0.35 $ 5.50 $ 2.06 Income from discontinued
operations, net of income tax - 0.96
0.86 1.24 Net income
(attributable to PPG) $ 0.73 $ 1.31 $
6.36 $ 3.30
Earnings per common share (attributable to PPG) -
assuming dilution Income from
continuing operations, net of income tax $ 0.72 $ 0.34 $ 5.46 $
2.05 Income from discontinued operations, net of income tax
- 0.96 0.85
1.23 Net income (attributable to PPG) $ 0.72
$ 1.30 $ 6.31 $ 3.28
Average shares outstanding 253.6 262.0
256.1 265.6
Average shares outstanding - assuming dilution 255.4
263.7 257.8 267.4
Note A: Other (income) charges 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. Other (income) charges during
the three and twelve months ended December 31, 2016 includes an
charge of $82 million for increases to legacy environmental
reserves.
PPG INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) ($
in millions) The condensed consolidated statements of
operations include the impact of items that management does not
include when evaluating the performance of the business on a
quarterly basis. Income tax expense on pre-tax income from
continuing operations includes tax benefit/(expense) related to the
following: Three Months Ended Twelve Months
Ended December 31 December 31
2017
2016
2017
2016
Net tax charge for Tax Cuts and Jobs Act legislation $ (97 )
$ - $ (97 ) $ - Pension settlement charges 14 - 22 352
Transaction-related costs - - 3 3 Gain from the sale of a
non-operating asset (5 ) - (5 ) - Income from a legal settlement -
- (7 ) - Gain from the sale of the Mexican Plaka business - - (1 )
- Business restructuring charge - 51 - 51 Environmental remediation
charge - 31 - 31 Premium on early retirement of debt - 3 - 3 Asset
write-downs 0 4 0 7 Net tax effect of asbestos settlement funding -
(23 ) - (151 ) Net gain from disposals of ownership interests in
business affiliates - (9 ) -
(16 ) Total $ (88 ) $ 57 $ (85 ) $ 280
PPG INDUSTRIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(unaudited) ($ in millions) December 31 December 31
2017
2016 (a)
Current assets: Cash and cash equivalents $ 1,436 $ 1,820
Short-term investments 55 43 Receivables - net 2,892 2,654
Inventories 1,730 1,514 Assets held for sale - 223 Other 352
320 Total current assets $ 6,465 $ 6,574
Current liabilities: Short-term debt and current portion of
long-term debt $ 12 $ 629 Accounts payable and accrued liabilities
3,788 3,460 Restructuring reserves 102 100 Liabilities held for
sale - 64 Total current liabilities $ 3,902 $
4,253 Long-term debt $ 4,134 $ 3,787
(a) Assets and liabilities of PPG's former Glass
segment are classified as held for sale as of December 31, 2016.
The North American fiber glass business was sold on September 1,
2017.
PPG OPERATING METRICS (unaudited) ($ in
millions) December 31 December 31
2017
2016 (b)
Operating Working Capital (a) $ 2,071 $ 2,001 As a percent of
quarter sales, annualized 14.1 % 14.6 % (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 Twelve Months
Ended December 31 December 31
2017
2016
2017
2016
Net sales Performance Coatings $ 2,124 $ 1,980 $ 8,732 $ 8,580
Industrial Coatings 1,558 1,437
6,018 5,690 Total $ 3,682 $ 3,417
$ 14,750 $ 14,270 Segment income
Performance Coatings $ 260 $ 239 $ 1,323 $ 1,314 Industrial
Coatings 212 236 972
1,042 Total $ 472 $ 475 $ 2,295 $ 2,356 Items
not allocated to segments Corporate (46 ) (43 ) (181 ) (209 )
Interest expense, net of interest income (20 ) (23 ) (85 ) (99 )
Legacy (Note A) 2 (7 ) (1 ) (32 ) Pension settlement charges (38 )
- (60 ) (968 ) Gain from the sale of a non-operating asset 13 - 13
- Asset write-downs (7 ) (13 ) (7 ) (23 ) Business restructuring
charge - (195 ) - (195 ) Environmental remediation charge - (82 ) -
(82 ) Gain from the sale of the Mexican Plaka business - - 25 -
Transaction-related costs - - (9 ) (8 ) Net gain from disposals of
ownership interests in business affiliates - 26 - 46 Income from a
legal settlement - - 18
- Income before income taxes $ 376 $
138 $ 2,008 $ 786 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 other charges which are not associated with PPG's current
business portfolio, including the impact of the asbestos
settlement. Until April 2016, legacy items also include equity
earnings from PPG’s minority investment in Pittsburgh Glass Works,
LLC.
View source
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PPG Media Contact:Mark Silvey, +1-412-434-3046Corporate
Communicationssilvey@ppg.comorPPG Investor Contact:John
Bruno, +1-412-434-3466Investor
Relationsjbruno@ppg.cominvestor.ppg.com
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