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2019 Sustainability Report

Financial Highlights

2019 Financial Overview and Shareholder Information

Financial Highlights

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Financial Overview

$ MM, except per share data 2019 2018 Change % Change

Net sales

$15,146

$15,374

$ (228)

-1%

Net Income (attributable to PPG)

Income from continuing operations

$ 1,243

$ 1,323

$ (80)

-6%

Income from discontinued operations

-

18

$ (18)

-100%

Net income

$ 1,243

$ 1,341

$ (98)

-7%

 

 

 

 

 

Earnings per diluted share from continuing operations

$ 5.22

$ 5.40

$ (0.18)

-3%

Earnings per diluted share from discontinued operations

-

0.07

$ (0.07)

-100%

Total earnings per diluted share

$ 5.22

$ 5.47

$ (0.25)

-5%

Adjusted earnings per diluted share from continuing operations 1

$ 6.22

$ 5.92

$ 0.30

5%

 

 

 

 

 

Dividends per share

$ 1.98

$ 1.86

$ 0.12

6%

Return on average capital

13.3%

13.9%

-0.6%

-4%

Operating cash flow (from continuing operations)

$ 2,084

$ 1,487

$ 597

40%

Capital spending (excluding business acquisitions)

$ 413

$ 411

$ 2

0%

Research and development

$ 456

$ 464

$ (8)

-2%

Average shares outstanding — assuming dilution

238.2

245.4

(7.2)

-3%

Average number of employees

47,600

47,300

300

1%

 

 

 

 

 

PPG shareholders' equity

$ 5,284

$ 4,630

$ 654

14%

  1. Adjusted amounts in 2019 and 2018 exclude after tax net charges of $1.00 and $0.52, respectively, which are included in reported earnings per diluted share. For detailed information regarding these adjustments, see the Regulation G Reconciliation in Item 7 of the Form 10-K.
  2. Adjusted amounts in 2017 exclude certain per diluted share amounts of $0.52 for a net tax charge related to U.S. Tax Cuts and Jobs Act, $0.14 for pension settlement charges, $0.03 for asset write-downs, $0.02 for acquisition-related costs, and benefits of ($0.09) for a gain from the sale of a business, ($0.04) for a gain from a legacy legal settlement, and ($0.03) for a gain from the sale of a non-operating asset. Adjusted amounts in 2016 exclude certain per diluted share amounts of $2.31 for a pension settlement charge, $0.57 for the net tax effect of asbestos settlement funding, $0.53 for a business restructuring charge, $0.20 for an environmental remediation charge, $0.06 for asset write-downs, $0.03 for acquisition-related costs, $0.02 for an early retirement of debt charge, and a benefit of ($0.12) for a gain from disposals of ownership interests in business affiliates. Adjusted amounts in 2015 exclude certain per diluted share amounts of $0.39 for a business restructuring charge; $0.10 for acquisition-related costs; $0.03 for a charge related to equity affiliate debt refinancing; and $0.02 for a pension settlement charge.

Shareholder Information

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Quarterly Stock Market Price

  2019 2018
Quarter Ended High Low Close High Low Close

31-Mar

$ 113.31

$ 96.82

$ 112.87

$ 122.07

$ 108.74

$ 111.60

30-Jun

$ 121.29

$ 104.44

$ 116.71

$ 113.90

$ 100.36

$ 103.73

30-Sep

$ 121.00

$ 105.99

$ 118.51

$ 116.73

$ 101.17

$ 109.13

31-Dec

$ 134.36

$ 112.02

$ 133.49

$ 111.42

$ 94.37

$ 102.23

PPG common stock is listed on the New York Stock Exchange (symbol: PPG). The number of holders of record of PPG common stock as of January 31, 2020 was 13,574 as shown on the records of the Company’s transfer agent.

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Dividends

  2019 2018
Month of Payment Amount ($ MM) Per Share Amount ($ MM) Per Share

March

$ 113

$ 0.48

$ 112

$ 0.45

June

$ 114

$ 0.48

$ 110

$ 0.45

September

$ 120

$ 0.51

$ 116

$ 0.48

December

$ 121

$ 0.51

$ 115

$ 0.48

TOTAL

$ 468

$ 1.98

$ 453

$ 1.86

PPG has paid uninterrupted annual dividends since 1899. The latest quarterly dividend of 51 cents per share was approved by the board of directors on January 16, 2020, payable March 12, 2020 to shareholders of record February 21, 2020.

Shareholder Return Performance

Comparison of Five-Year Cumulative Total Return
 

Comparison of Ten-Year Cumulative Total Return
 

These line graphs compare the yearly percentage changes in the cumulative total shareholder value return of the company’s common stock with the cumulative total return of the Standard & Poor’s Composite 500 Stock Index (“S&P 500 Index”) and a defined Peer Group, for the five-year and ten-year periods beginning Dec. 31, 2014, and Dec. 31, 2009, respectively, and ending Dec. 31, 2019. The information presented in these graphs assumes that the investment in the company’s common stock and each index was $100 on Dec. 31, 2014 and Dec. 31, 2009 and that all dividends were reinvested. The Peer Group includes 3M Co., AkzoNobel N.V., Axalta Coatings Systems Ltd., Dow Chemical, DowDupont Inc. (2017-2019), Eastman Chemical Co., Masco Corp., RPM International Inc., and The Sherwin-Williams Co.

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