PPG Chairman Notes Strategic Progress, Record Financials During Annual
PITTSBURGH -- April 18, 2013
PPG Industries (NYSE:PPG) today conducted its annual meeting of shareholders
in Pittsburgh, where Chairman and Chief Executive Officer Charles E. Bunch
spoke about the company’s recent strategic progress and record financial
“During 2012, we made significant progress by accelerating our transformation
with a couple headline announcements – the separation of our commodity
chemicals business, and plans to acquire AkzoNobel’s North American
architectural coatings business,” Bunch said. PPG completed both transactions
in early 2013.
“As a result of these and other portfolio actions over the past decade,
combined with organic growth in our coatings and optical and specialty
materials businesses, we have successfully transformed PPG from a diversified
industrial supplier to a focused coatings and specialty products company,”
Bunch said. “On a pro-forma basis, our coatings and optical businesses have
nearly tripled in size since 2002, and they now account for more than 90
percent of the company’s revenues.
“Our vision remains constant – that is to be the leading coatings and
specialty products company,” Bunch said. “Our strategic direction has two core
principles. First, we want to accelerate profitable growth with a focus on
strengthening our coatings and specialty products businesses, improving our
customer value proposition, driving innovation and expanding globally. Second,
we are enhancing our operational excellence by striving for cost, supply chain
and working capital leadership.”
Commenting on 2012 performance, Bunch said, “Last year was a year of records
for PPG. This included adjusted-earnings-per-share records in each quarter of
2012, which marked the third consecutive full year of
adjusted-earnings-per-share records. We also achieved record full-year cash
from operations of $1.8 billion, up 25 percent versus the previous year. Our
cash balance continues to provide PPG with the strength and flexibility to
fund further earnings-growth initiatives in 2013.
“PPG also reinvested for organic growth by launching capital projects to
continue expanding coatings capacity at the Tianjin, China, site, and to
increase silica production capacity in North America. In 2012, our total
investments to help maintain the health of our businesses and drive organic
expansions exceeded $400 million,” Bunch said.
PPG also raised its annual dividend payout for the 41st consecutive year. “PPG
has paid uninterrupted dividends since 1899, a legacy we are proud to
continue,” Bunch noted. “PPG’s excellent financial performance and progress on
our strategic transformation were rewarded in 2012 with a year-end stock price
that increased more than 60 percent versus the prior year-end.”
Looking ahead, Bunch said, “We expect 2013 to be another milestone year in our
transformation as we integrate the AkzoNobel North American architectural
business, and I remain confident that our strategy and execution will lead to
continued success and future value for our shareholders.”
At the annual meeting, PPG shareholders elected four incumbent directors:
James G. Berges, partner, Clayton, Dubilier & Rice, LLC; John V. Faraci,
chairman and CEO, International Paper Co.; Victoria F. Haynes, retired
president and CEO, RTI International; and Martin H. Richenhagen, chairman,
president and CEO, AGCO Corp. Shareholders passed a non-binding resolution to
approve the compensation of the company’s named executive officers.
Additionally, shareholders ratified the appointment of PricewaterhouseCoopers
LLP as the company’s independent registered public accounting firm for 2013.
Shareholder votes were not sufficient to approve the proposal to amend the
company’s Articles of Incorporation to provide for the annual election of
directors. PPG shareholders voted in favor of a shareholder proposal to adopt
a simple majority vote.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world’s leading coatings and
specialty products company. Through leadership in innovation, sustainability
and color, PPG helps customers in industrial, transportation, consumer
products, and construction markets and aftermarkets to enhance more surfaces
in more ways than does any other company. Founded in 1883, PPG has global
headquarters in Pittsburgh and operates in nearly 70 countries around the
world. Sales in 2012 were $15.2 billion. PPG shares are traded on the New York
Stock Exchange (symbol:PPG). For more information, visit www.ppg.com.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
PPG Industries, Inc.
PPG Corporate Communications
Jeremy Neuhart, 412-434-3046
PPG Investor Relations
Vince Morales, 412-434-3740
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