PPG Industries (NYSE:PPG) today held a meeting for securities analysts in Cabo San Lucas, Mexico. The meeting included presentations by Michael McGarry, PPG president and chief operating officer; and Marcos Achar Levy, PPG vice president, architectural coatings, Latin America, and chief executive officer, PPG-Comex.
During the meeting, PPG reviewed details of PPG-Comex Mexican operations, provided information about the growth of the Mexican economy and PPG-Comex, and toured PPG-Comex concessionaire locations. The company indicated during the meeting it expects cost synergies associated with the Comex acquisition to be $45 million to $50 million by the end of 2016, up from the company’s previous guidance of $30 million to $40 million.
PPG also issued new acquisition-related revenue synergy targets for the PPG-Comex acquisition. The company expects to generate $40 million to $50 million in revenue within two years from sales of legacy PPG products through the PPG-Comex distribution network. PPG set a separate revenue target of $60 million to $70 million within five years for incremental coatings sales in Central America. PPG had previously issued no incremental revenue guidance relating to Comex.
PPG completed its acquisition of Comex in November 2014.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries'
vision is to be the world’s leading coatings company by consistently
delivering high-quality, innovative and sustainable solutions that
customers trust to protect and beautify their products and surroundings.
Through leadership in innovation, sustainability and color, PPG provides
added value to customers in construction, consumer products, industrial
and transportation 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 more than 70 countries around
the world. Reported net sales in 2014 were $15.4 billion. PPG shares are
traded on the New York Stock Exchange (symbol:PPG). For more
information, visit www.ppg.com
and follow @PPGIndustries
on Twitter.
Forward-Looking Statements
Statements in this news release
relating to matters that are not historical facts are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 reflecting the company’s current view with respect to
future events or objectives and financial or operational performance or
results. The forward-looking statements contained herein include
statements relating to the financial performance of PPG-Comex business,
anticipated revenue and cost synergies and expected performance of PPG
Industries’ Central America business. Actual events may differ
materially from current expectations and are subject to a number of
risks and uncertainties, including the failure to meet expected revenue
and cost synergy targets; the ability of PPG Industries to achieve the
expected benefits of the Comex and Consorcio Latinoamericano
acquisitions; and the other risks and uncertainties discussed in PPG
Industries’ periodic reports on Form 10-K and Form 10-Q and its current
reports on Form 8-K filed with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date of their initial
issuance, and PPG Industries does not undertake any obligation to update
or revise publicly any forward-looking statement, whether as a result of
new information, future events or otherwise.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
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Contacts:
Media:
PPG Corporate
Communications
Mark Silvey, 412-434-3046
silvey@ppg.com
or
Investors:
PPG
Investor Relations
Scott Minder, 412-434-3466
sminder@ppg.com