PPG Industries, Inc. (NYSE:PPG) Q4 2019 Earnings Conference Call - Final Transcript

Jan 16, 2020 • 02:00 pm ET


PPG Industries, Inc. (NYSE:PPG) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the PPG Industries Fourth Quarter and Full Year 2019 Earnings Conference Call. My name is Chad, and I'll be your conference specialist today. [Operator Instructions]

I would now like to turn the conference over to John Bruno, Director, Investor Relations. Please go ahead.

John Bruno

Thank you, Chad. And good afternoon everyone. We appreciate your continued interest in PPG and welcome you to our fourth quarter 2019 financial results conference call. Joining me on the call from PPG are Michael McGarry, Chairman and Chief Executive Officer and Vince Morales, Senior Vice President and Chief Financial Officer.

Our comments relate to the financial information released on Thursday, January 16, 2020. I will remind everyone that we have posted detailed commentary and presentation slides on the Investor Center of our website ppg.com. The slides are also available on the webcast site for this call and provide additional support to the opening comments Michael will make shortly. Following Michael's perspective on the company's results for the quarter and for the full year, and a brief financial update from Vince, we will move to a Q&A session.

Both the prepared commentary and discussion during this call may contain forward-looking statements reflecting the company's current view of future events and their potential effect PPG's operating and financial performance. These statements involve uncertainties and risks, which may cause actual results to differ. The company is under no obligation to provide subsequent updates to these forward-looking statements. This presentation also contains certain non-GAAP financial measures, the company has provided in the appendix of the presentation materials which are available on our website, reconciliations to these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information, please refer to PPG's filings with the SEC.

Now, let me introduce PPG Chairman and CEO, Michael McGarry.

Michael H. McGarry

Thank you, John, and good afternoon everyone. We appreciate you joining us on our call. Today, we reported fourth quarter and full year 2019 results. Before reviewing the results, let me just make a few additional comments. We are very pleased with our financial performance for the quarter and the full year as we delivered strong year-over-year results in the phase of weakening global manufacturing activity.

We delivered record fourth quarter and full year adjusted EPS and our full year results were in the middle of the financial guidance we gave last January, despite softer global economy. Additionally, we continue to execute on our long-term strategic and cash deployment initiatives focused on shareholder value creation. These initiatives included the completion of several acquisitions which expanded our technology reach and customer intimacy and our legacy rewarding our shareholders, including the 48th year of annual per share dividend increases.

We continue to invest about 3% of sales in research and development and progress the commercialization of new products and technologies allowing us to deliver above-market growth in several of our businesses. We will continue to communicate our progress on these initiatives, and any new key products for 2020.

More technically,