PPG (NYSE: PPG) today announced certain targets for 2019. The operational and financial metrics are supported by PPG’s strategic initiatives to enhance shareholder value, and are expected to drive performance this year and beyond. The Board and management team are strongly aligned and accountable for shareholder value creation and are committed to achieving these targets.

• Sales growth of 3 to 5 percent in constant currencies including recently announced acquisitions
• Adjusted earnings per share growth, excluding currency translation impacts, of 7 to 10 percent, including improvement toward pre-inflationary operating margins as we continue to work with customers to receive appropriate value for our innovative products
• Strong alignment with shareholder value creation by maintaining 10 percent EPS growth as the earnings-related metric for variable long-term incentive compensation
• Deliver at least $70 million in cost savings, which are reflected in the EPS target
• Recommend an increase in the annual per share dividend to our Board of Directors, consistent with the past 47 years
• Complete the strategic review of the business portfolio regarding the shareholder value associated with the combination or separation of the architectural and industrial coatings businesses by the end of the second quarter 2019
• Continued Board and management support to enhance governance structure by proposing to amend Articles of Incorporation and Bylaws eliminating the classified board and removing supermajority voting. PPG has made these shareholder proposals in the past, but will take an extra step this year and engage a proxy solicitor in an effort to achieve the required approval of 80 percent of the outstanding shares of common stock.

“These targets are consistent with our hallmarks of delivering innovative products to our customers, driving operational excellence and rewarding shareholders,” said Michael H. McGarry, PPG chairman and CEO. “The 7 to 10 percent EPS growth target is specific, actionable and reflective of the current macroeconomic environment. We will maintain a minimum of 10 percent EPS growth as our earnings-related metric for our variable long-term incentive compensation, ensuring very strong alignment with shareholder value creation.

“Over the last several months, PPG has actively engaged with many of our shareholders. The targets and objectives announced today resulted from PPG’s planning process, are responsive to a broad set of shareholder feedback and demonstrate confidence in the Company’s long-term prospects and operational excellence.

“PPG remains well-positioned strategically and financially. We have an outstanding team and differentiated industry expertise, a broad geographic footprint and robust world-class product innovation. The Board and management remain deeply committed to shareholder value creation. We are very appreciative of the input and constructive dialogue that we have with all of our shareholders and look forward to providing further updates throughout the year,” concluded McGarry.