CORRECTING and REPLACING PPG Reports First Quarter 2018 Financial Results

• Net sales of approximately $3.8 billion, up nearly 9 percent versus
  prior year
• Reported earnings per diluted share from continuing operations of $1.38
• Adjusted earnings per diluted share from continuing operations of
  $1.39, up over 4% percent from prior year
• Momentum continues on achieving higher selling prices to offset
  inflation
• On-going cost management continued; selling, general and
  administrative costs declined by 140 basis points as a percentage of
  sales versus first quarter 2017
• Share repurchases of $600 million in the first quarter; commitment
  remains to deploy at least $2.4 billion on acquisitions and share
  repurchases in 2018

PITTSBURGH–(BUSINESS WIRE)–Subheadline, fifth bullet should read: On-going cost management
continued; selling, general and administrative costs declined by 140
basis points as a percentage of sales versus first quarter 2017 (instead
of: On-going cost management continued; selling, general and
administrative costs declined by 150 basis points as a percentage of
sales versus first quarter 2017).

Seventh paragraph, first sentence should read: We continue to manage our
costs, which is reflected in lower year-over-year selling, general, and
administrative expenses of 140 basis points as a percentage of sales
(instead of: We continue to manage our costs, which is reflected in
lower year-over-year selling, general, and administrative expenses of
150 basis points as a percentage of sales.)

The corrected release reads:

PPG REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS

• Net sales of approximately $3.8 billion, up nearly 9 percent versus
  prior year
• Reported earnings per diluted share from continuing operations of $1.38
• Adjusted earnings per diluted share from continuing operations of
  $1.39, up over 4% percent from prior year
• Momentum continues on achieving higher selling prices to offset
  inflation
• On-going cost management continued; selling, general and
  administrative costs declined by 140 basis points as a percentage of
  sales versus first quarter 2017
• Share repurchases of $600 million in the first quarter; commitment
  remains to deploy at least $2.4 billion on acquisitions and share
  repurchases in 2018

PPG (NYSE:PPG) today reported first quarter 2018 net sales of about $3.8
billion, up nearly 9 percent versus the prior year. Net sales in local
currencies grew approximately 3 percent year-over-year aided by higher
selling prices of almost 2 percent. Selling prices increased by 100
basis points sequentially versus the fourth quarter. Sales volumes grew
less than one percent year-over-year. Favorable foreign currency
translation improved net sales by nearly 6 percent, or about $205
million. Acquisition-related sales, net of divestitures, added less than
1 percent to sales growth.

First quarter 2018 reported net income from continuing operations was
$347 million, or $1.38 per diluted share. First quarter adjusted net
income from continuing operations was $350 million, or $1.39 per diluted
share, an over 4 percent increase versus the first quarter 2017.
Adjusted net income excludes after-tax costs related to immediate,
direct cost realignment following a customer assortment change in U.S.
architectural coatings. The effective tax rate for the quarter was 23.5
percent.

First quarter 2017, net income from continuing operations was $328
million, or $1.27 per diluted share. First quarter 2017 adjusted net
income from continuing operations was $345 million, or $1.33 per diluted
share. Adjusted net income excludes an after-tax pension settlement
charge of $14 million, or 5 cents per diluted share, and after-tax
transaction-related costs of $3 million, or 1 cent per diluted share.
The effective tax rate for the quarter was 24.3 percent, and the
adjusted effective tax rate for the quarter was 24.9 percent.

A detailed reconciliation of the reported adjusted figures for the first
quarter is included below.

“In the first quarter, selling price initiatives continued to gain
momentum with increases across all regions that totaled nearly 2
percent. This is our most significant sequential improvement since raw
material inflation began approximately one-year ago and includes an
almost 200 basis points of sequential improvement in the Industrial
Coatings segment,” said Michael H. McGarry, PPG chairman and chief
executive officer. “During the quarter, we experienced further raw
material inflation and higher logistics costs across all of our
businesses. We are continuing to prioritize working with our customers
to further offset the impact of inflation. These efforts, along with our
continued focus on operational excellence are expected to aid our margin
recovery efforts.

“Our volumes grew less than one percent, including the negative impacts
to our distribution businesses of fewer shipping days due to a shift in
the timing of the Easter holiday. In addition, we remain focused on
recovering our operating margins and opted to decline certain business
during the quarter. In the Performance Coatings segment, sales volumes
were flat year-over-year as above-market growth in aerospace coatings
was offset by lower European architectural coatings demand. In the
Industrial Coatings segment, sales volumes increased by 1.5 percent led
by solid growth in the general industrial and packaging coatings
businesses.

“We continue to manage our costs, which is reflected in lower
year-over-year selling, general, and administrative expenses of 140
basis points as a percentage of sales. This improvement includes
benefits from our 2016 restructuring program, which remains on track to
realize annualized savings of $120 million by 2019. Further, with the
customer assortment change that we communicated during the first
quarter, we have begun an extensive review of our cost structure that we
believe will identify and drive additional cost savings opportunities.
We expect to provide more information as we progress this initiative,”
McGarry said.

“Finally, we repurchased $600 million of stock during the quarter as
part of our continued focus on earnings-accretive cash deployment. Our
pipeline for acquisitions remains active, and we continue our focus on
maximizing long-term shareholder value. As we look ahead, we still
expect continued positive momentum in overall economic growth, and we
remain optimistic that our leading-edge technology products will
continue to bring value to our customers,” McGarry concluded.

First Quarter 2018 Reportable Segment Financial Results

• Performance Coatings segment first quarter net sales were
  approximately $2.2 billion, up $148 million, or 7 percent, versus the
  prior year. Organic sales in local currencies increased nearly 2
  percent, primarily due to higher selling prices. Sales volumes were
  flat versus the prior year partially due to fewer shipping days which
  negatively impacted the distribution businesses. Favorable foreign
  currency translation increased net sales by $119 million, or nearly 6
  percent.
  Automotive refinish coatings organic sales
  increased year-over-year by a mid-single-digit percentage driven by
  above-market performance in Europe and strong demand in the
  Asia-Pacific region. Aerospace coatings sales volumes grew by a
  high-single-digit percentage due to improving customer demand for PPG
  products in the U.S. and Asia-Pacific. Architectural coatings –
  Americas and Asia Pacific organic sales advanced a low-single-digit
  percentage year-over-year, with differences by channel and region. In
  the U.S. and Canada, same store sales in company-owned architectural
  stores grew by a mid-to-high-single-digit percentage. Aggregate sales
  volumes in DIY and independent dealer channels declined a
  mid-single-digit percentage versus the prior year, including the
  unfavorable impact from a customer assortment change. Latin America
  architectural coatings sales volumes grew by a high-single-digit
  percentage with broad-based growth including Mexico, Central America
  and Brazil. Architectural coatings – EMEA sales volumes declined a
  mid-single-digit percentage including the effects from harsh regional
  weather conditions. Aggregate protective and marine coatings sales
  volumes were slightly higher year-over-year for the third straight
  quarter, with protective coatings sales growth offsetting moderating
  marine coatings sales contraction.
  Segment income for the
  first quarter was $285 million, in-line with the first quarter 2017,
  including favorable foreign currency translation of $15 million, as
  higher selling prices and lower operating costs were more than offset
  by raw material inflation.

• Industrial Coatings segment first quarter net sales were more than
  $1.6 billion, up nearly $152 million, or more than 10 percent, versus
  the prior year. Year-over-year sales volumes increased by 1.5 percent,
  and favorable foreign currency translation added $84 million, or about
  6 percent. During the quarter, sales volume growth was negatively
  impacted by a concentrated effort by the businesses on executing
  selling price initiatives, which resulted in certain business being
  turned away. Selling prices increased nearly 1 percent year-over-year
  and about 200 basis points sequentially versus the fourth quarter.
  Acquisition-related sales added approximately $30 million in sales or
  about 2 percent year-over-year.
  Automotive OEM coatings
  sales volumes were in-line with the prior year and global industry
  automotive builds. Aggregate general industrial coatings and specialty
  coatings and materials sales volumes continued to grow and outpaced
  global industrial production growth rates for the ninth consecutive
  quarter, led by strong sales in heavy-duty equipment and electronic
  materials. Packaging coatings sales volumes grew by a low-single-digit
  percentage year-over-year with above-industry growth rates in the U.S.
  and Europe stemming from customer adoption of new PPG technologies.
  Segment
  income for the first quarter was $240 million, down $36 million, or 13
  percent, year-over-year. Segment income was lower due to elevated raw
  material inflation which was partly offset by higher selling prices
  and also favorable foreign currency translation of about $10 million.
  Additional selling price initiatives have been secured in the second
  quarter 2018.

Businesses within both reporting segments are managing costs and
executing restructuring initiatives. Restructuring actions are expected
to provide cost savings between $50 million and $55 million in 2018,
higher than prior company guidance. First quarter corporate expenses
were lower year-over-year, driven primarily by lower pension and other
post-employment benefit costs. Corporate expenses are expected to be
between $175 and $190 million for the full year 2018.

As PPG’s earnings release was being finalized, the company received a
report through its internal reporting system concerning potential
violations of PPG’s accounting policies and procedures regarding the
failure to accrue certain specified expenses in the first quarter. Based
on preliminary review, the company identified approximately $1.4 million
of expense that should have been accrued in the first quarter, and the
earnings reported in this release reflect the accrual of such $1.4
million of expenses. The report also alleges that there may have been
other unspecified expenses, potentially up to $5 million in the
aggregate, that were improperly not accrued in the first quarter. The
Audit Committee of the company’s Board of Directors is overseeing an
investigation of the matters set forth in the report, with the
assistance of outside counsel. The company is currently unable to
predict the timing or outcome of the investigation and will move with
diligence.

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

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 $14.8 billion in 2017.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.

Additional Information

PPG will provide detailed commentary regarding its financial
performance, including presentation-slide content, on the PPG
Investor Center at www.ppg.com at 1 p.m. ET today, April 19. The
company will hold a conference call to review its first quarter 2018
financial performance today at 2 p.m. ET. Participants can pre-register
for the conference by navigating to http://dpregister.com/10118233
to register. The conference call also will be available in listen-only
mode via Internet broadcast from the PPG
Investor Center at www.ppg.com (Windows Media Player). A telephone
replay will be available today, April 19, beginning at approximately
4:30 p.m. ET, through May 3 at 11:59 p.m. ET. The dial-in numbers for
the replay are: in the United States, 877-344-7529; international,
+1-412-317-0088; passcode 10118233. A Web replay also will be available
on the PPG
Investor Center at www.ppg.com, beginning at approximately 4:30 p.m.
ET today, April 19, 2018, through April 18, 2019.

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, 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 the timing and outcome of
the investigation into potential violations of PPG’s accounting
policies. However, it is not possible to predict or identify all such
factors. Consequently, while the list of factors presented here and in
PPG Industries’ 2017 Form 10-K 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
Industries’ consolidated financial condition, results of operations or
liquidity. All information in this release speaks only as of April 19,
2018, 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.

Regulation G Reconciliation

PPG believes investors’ understanding of the company’s operating
performance is enhanced by the disclosure of earnings per diluted share
from continuing operations and PPG’s effective tax rate from continuing
operations adjusted for certain charges. PPG’s management considers this
information useful in providing insight into the company’s ongoing
operating performance because it excludes the impact of items that
cannot reasonably be expected to recur on a quarterly basis or that are
not attributable to our primary operations. Earnings per diluted share
from continuing operations and the effective tax rate from continuing
operations adjusted for these items are not recognized financial
measures determined in accordance with U.S. generally accepted
accounting principles (GAAP) and should not be considered a substitute
for earnings per diluted share, the effective tax rate or other
financial measures as computed in accordance with U.S. GAAP. In
addition, earnings per diluted share from continuing operations and the
adjusted effective tax rate from continuing operations may not be
comparable to similarly titled measures as reported by other companies.

Regulation G Reconciliation – Net Income and Earnings per Diluted
Share

($ in millions, except per-share amounts)

Contacts

PPG Media Contact:
Mark Silvey, +1-412-434-3046
Corporate
Communications
[email protected]
or
PPG
Investor Contact:
John Bruno, +1-412-434-3466
Investor
Relations
[email protected]
investor.ppg.com