Trian Partners Activist Presentation Deck
Q3 '18: Earnings Pre-Announced For a Third Consecutive Year
▪ On October 8, 2018, PPG issued a profit warning for its Q3 and Q4 earnings, with the revised
EPS guidance missing Wall Street consensus estimates by 10% in Q3 and 20% in Q4
PPG has now issued a profit warning prior to Q3 results in each of the last three years(1)
While we acknowledge the headwinds in raw materials and foreign exchange movements,
PPG's three largest peers have grown EBITDA this quarter by 11% on average(2), suggesting
that PPG is not managing the industry headwinds as effectively as its peers
■
Q3 2018 EPS
Consensus (3) vs. Revised Guidance (4)
$1.59
Consensus
10% below
consensus
$1.43
Revised
Guidance
Q4 2018 EPS
Consensus (3) vs. Revised Guidance (4)
$1.35
Consensus
20% below
consensus
$1.08
Revised
Guidance
Earnings pre-announcements are no longer the exception, they have become
the rule. Investors appear to have lost confidence in PPG's leadership
Source: Company SEC filings, Bloomberg.
(1)
See press releases issued October 8, 2018, September 25, 2017, and October 7, 2016.
(2) For the quarter ended September 30, 2018, Akzo Nobel grew EBITDA 3%, Axalta grew EBITDA by 12%, Sherwin-Williams grew EBITDA by 11%. PPG's EBITDA declined by 11%.
(3) Wall Street consensus estimates as of market close on October 8, 2018.
(4) Midpoint of guidance provided by management in press release dated October 8, 2018.
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