PPG chairman delivers strategic and financial update at investor conference
Indicates cash deployment of up to $1.5 billion during remainder of 2011
PITTSBURGH, May 25, 2011 – PPG Industries (NYSE: PPG) Chairman and CEO Charles E. Bunch today reviewed the company’s progress on its strategic initiatives at the Goldman Sachs Basic Materials Conference. Bunch highlighted PPG’s progress over the past decade to transform itself into a leading global coatings and specialty products company. He also reviewed the company's recent financial performance, which includes quarterly earnings-per-share records for each of the past three quarters.
“Our solid earnings recovery illustrates the success of our portfolio transformation and provides evidence that we are now a more resilient, focused company,” Bunch said. “In addition, PPG’s ability to successfully integrate recent acquisitions, combined with our recent earnings performance, has elevated our return on capital toward pre-recession levels despite only a partial volume recovery on a much larger capital base,” he said. He noted that the company's actions also have led to sales margins that continue to position PPG as a leader among its coatings peers.
Discussing current trends, Bunch indicated that additional selling price increases are already in place in all reporting segments in the second quarter, and further pricing actions are being implemented for the third quarter. Finally, Bunch said PPG expects to deploy between $750 million to $1.5 billion of cash in the final three quarters of 2011, and he anticipates that this will result in earnings accretion of 15 cents to 55 cents per share in 2012. The cash deployment includes a combination of acquisitions, share buybacks and debt repayment, according to Bunch.
PPG Industries’ vision is to continue to be the world’s leading coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2010 were $13.4 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. These matters relate to anticipated pricing actions, cash deployment and earnings accretion and involve risks and uncertainties as discussed in PPG Industries’ periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K, filed with the Securities and Exchange Commission (SEC). Accordingly, many factors could cause actual results to differ materially from the company’s forward-looking statements.
Among these factors are global economic conditions, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials, the ability to maintain favorable supplier relationships and arrangements, the realization of anticipated cost savings from restructuring initiatives, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the ability to penetrate existing, developing or emerging foreign and domestic markets, and economic and political conditions in international markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions and the unpredictability of possible future litigation, including litigation that could result if the asbestos settlement discussed in PPG’s filings with the SEC does not become effective. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.
Forward-looking statements speak only as of the date of their initial issuance, and PPG does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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