PPG Officials Discuss Successful Performance, Strategy and Outlook

During PPG Industries’ 2011 capital markets day December 5 in New York City, Chairman and CEO Charles E. Bunch and other senior leaders discussed PPG’s transformation into a global coatings and specialty products company with growing positions in all major geographic regions, according to a December 6 company release.

“In each of the past five quarters, PPG has achieved record earnings per share, averaging nearly 30 percent above prior quarterly records, despite elevated raw material inflation and sales volumes that remain below pre-recession 2008 levels,” Bunch said in the release. “Our record performance reflects the value-added technologies we are providing to our customers globally, our aggressive cost management and strong operational execution, and our earnings-focused cash deployment.”

Bunch said that PPG’s sales in coatings and specialty products have more than doubled since 2001 and now account for more than 80 percent of total company revenues. In addition, he said PPG’s overall sales in emerging regions have grown to account for about 26 percent of the company’s portfolio.

“In 2012, we plan to continue to pursue growth in key technology-driven businesses, notably aerospace, automotive refinish and optical, as well as in faster-growing emerging regions,” Bunch said. “In addition, we intend to maintain our keen focus on cost and operations.”

Regarding current business conditions, Bunch said that most PPG businesses are performing in line with normal, seasonal fourth-quarter trends. Commenting on PPG’s recent declaration of force majeure for certain optical products because of flooding in Thailand, Bunch said that it would likely have a negative impact of about 8 cents to 14 cents per share on fourth quarter 2011 earnings but that there would be “minimal carryover effect into 2012.”