PPG Announces Full-Year 2019 Financial Guidance

PITTSBURGH–(BUSINESS WIRE)–PPG (NYSE: PPG) today announced certain targets for 2019. The
operational and financial metrics are supported by PPG’s strategic
initiatives to enhance shareholder value, and are expected to drive
performance this year and beyond. The Board and management team are
strongly aligned and accountable for shareholder value creation and are
committed to achieving these targets.

  • Sales growth of 3 to 5 percent in constant currencies including
    recently announced acquisitions
  • Adjusted earnings per share growth, excluding currency translation
    impacts, of 7 to 10 percent,
    including improvement toward
    pre-inflationary operating margins as we continue to work with
    customers to receive appropriate value for our innovative products
  • Strong alignment with shareholder value creation by maintaining
    10 percent EPS growth as the earnings-related metric for variable
    long-term incentive compensation
  • Deliver at least $70 million in cost savings, which are
    reflected in the EPS target
  • Recommend an increase in the annual per share dividend to our Board
    of Directors
    , consistent with the past 47 years
  • Complete the strategic review of the business portfolio regarding
    the shareholder value associated with the combination or separation of
    the architectural and industrial coatings businesses by the end of the
    second quarter 2019
  • Continued Board and management support to enhance governance
    by proposing to amend Articles of Incorporation and
    Bylaws eliminating the classified board and removing supermajority
    voting. PPG has made these shareholder proposals in the past, but will
    take an extra step this year and engage a proxy solicitor in an effort
    to achieve the required approval of 80 percent of the outstanding
    shares of common stock.

“These targets are consistent with our hallmarks of delivering
innovative products to our customers, driving operational excellence and
rewarding shareholders,” said Michael H. McGarry, PPG chairman and CEO.
“The 7 to 10 percent EPS growth target is specific, actionable and
reflective of the current macroeconomic environment. We will maintain a
minimum of 10 percent EPS growth as our earnings-related metric for our
variable long-term incentive compensation, ensuring very strong
alignment with shareholder value creation.

“Over the last several months, PPG has actively engaged with many of our
shareholders. The targets and objectives announced today resulted from
PPG’s planning process, are responsive to a broad set of shareholder
feedback and demonstrate confidence in the Company’s long-term prospects
and operational excellence.

“PPG remains well-positioned strategically and financially. We have an
outstanding team and differentiated industry expertise, a broad
geographic footprint and robust world-class product innovation. The
Board and management remain deeply committed to shareholder value
creation. We are very appreciative of the input and constructive
dialogue that we have with all of our shareholders and look forward to
providing further updates throughout the year,” concluded McGarry.


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.

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

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.


PPG Media:
Mark Silvey
Corporate Communications

John Bruno
Investor Relations