Spreadsheet: 21d949c7-9b39-4058-a2da-0f0c1b7d1ba3
Sheet: Sheet1

 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | (All amounts in millions except per-share data)
 |  |  | 3 Months Ended
 |  |  | March 31
 |  |  | 2013 | 2012
 | Net sales |  | 3331 | 3333
 | Cost of sales, exclusive of depreciation and amortization (Note A) |  | 1947 | 1946
 | Selling, R&D and administrative expenses (Note B) |  | 912 | 933
 | Depreciation |  | 81 | 79
 | Amortization |  | 26 | 29
 | Interest expense |  | 53 | 51
 | Interest income |  | -10 | -10
 | Asbestos settlement - net |  | 3 | 3
 | Business restructuring |  | 0 | 208
 | Other charges - net (Note C) |  | 1 | 141
 | INCOME BEFORE INCOME TAXES |  |  | -47
 | Income tax expense (benefit) (Note D) |  | 64 | -31
 | Income (loss) from continuing operations, net of income taxes |  | 254 | -16
 | Income from discontinued operations, net of income taxes (Note E) |  | 2191 | 67
 | Net income attributable to the controlling and noncontrolling interests |  |  | 51
 |  | Less: Net income attributable to noncontrolling interests | -35 | -38
 | NET INCOME (ATTRIBUTABLE TO PPG) |  |  | 13
 | Amounts attributable to PPG:
 |  | Income (loss) from continuing operations, net of tax | 219 | -50
 |  | Income from discontinued operations, net of tax | 2191 | 63
 | Net income (attributable to PPG) |  |  | 13
 | Earnings per common share (attributable to PPG)
 |  | Income (loss) from continuing operations, net of tax | 1.5 | -0.33
 |  | Income from discontinued operations, net of tax | 14.99 | 0.41
 | Net income (attributable to PPG) |  | 16.49 | 0.08
 | Earnings per common share (attributable to PPG) - assuming dilution
 |  | Income (loss) from continuing operations, net of tax | 1.48 | -0.32
 |  | Income from discontinued operations, net of tax | 14.83 | 0.4
 | Net income (attributable to PPG) |  | 16.31 | 0.08
 | Average shares outstanding |  | 146.1 | 152.8
 | Average shares outstanding - assuming dilution |  | 147.7 | 154.5
 | See accompanying notes on page 2
 | Note A:
 |  | Cost of sales, exclusive of depreciation and amortization includes $16 million for final settlement of certain legacy Canadian pension plans in 2013 and the flow-through cost of sales of the step up to fair value of inventory acquired from Spraylat of $3 million in 2013 and [NAME] and Colpisa of $6 million in 2012.
 | Note B:
 |  | Selling, R&D and administrative expenses includes $2 million for final settlement of certain legacy Canadian pension plans and $4 million for acquisition related charges in 2013.
 | Note C:
 |  | The quarter ended March 31, 2013 includes a pretax charge of $12 million related to environmental remediation at a legacy manufacturing site.  The quarter ended March 31, 2012 includes a pretax charge of $159 million, relating primarily to continued environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.
 | Note D:
 |  | The effective rate on pretax earnings from continuing operations for the quarter ended March 31, 2013 includes tax benefits of $5 million or 26.7 percent for final settlement of legacy pension plans, $4 million or 37.4 percent for a legacy environmental remediation charge, $2 million or 26.4 percent for acquisition-related costs.  The quarter also includes an after-tax benefit of $10 million for the retroactive impact of a US tax law change enacted in early 2013 and that was not included in previously reported 2012 earnings.  The effective tax rate on the remaining pre-tax earnings from continuing operations was 24 percent resulting in tax expense of $85 million.
 |  | The effective tax rate on pretax earnings from continuing operations for the quarter ended March 31, 2012 includes tax benefits of $60 million or 37.7 percent for estimated environmental remediation costs primarily at sites in New Jersey,  $45 million or 21.4 percent for business restructuring charges and $2 million or 28.6 percent for acquisition-related expenses stemming from the integration of Dyrup A/S in Europe and Colpisa in Latin America.  The effective tax rate on the remaining pre-tax earnings from continuing operations was 23.5 percent resulting in tax expense of $76 million.
 | Note E:
 |  | Income from discontinued operations includes the historical operating results of PPG's former Commodity Chemicals business that was separated on January 28, 2013.  For the quarter ended March 31, 2013 income from discontinued operations includes a net gain on the separation transaction of $2.2 billion.
 | BALANCE SHEET HIGHLIGHTS (unaudited)
 |  |  | March 31 | March 31 | Dec 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | ($ in millions)
 | Current assets:
 |  | Cash and cash equivalents | 2021 | 978 | 1306
 |  | Short-term investments (a) | 359 | 56 | 1087
 |  | Receivables - net | 2824 | 3236 | 2813
 |  | Inventories | 1698 | 1830 | 1687
 |  | Other | 824 | 844 | 822
 |  | Total current assets | 7726 | 6944 | 7715
 | Current liabilities:
 |  | Short-term debt and current portion of long-term debt | 48 | 669 | 642
 |  | Asbestos settlement | 680 | 610 | 683
 |  | Accounts payable and accrued liabilities | 2999 | 3279 | 3136
 |  | Total current liabilities | 3727 | 4558 | 4461
 | Long-term debt |  | 3353 | 2988 | 3368
 | PPG OPERATING METRICS  (unaudited)
 |  |  |  |  | Dec. 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | ($ in millions)
 | Operating Working Capital (c )
 |  | Amount | 2837 | 3241 | 2878
 |  | As a percent of quarter sales, annualized | 0.213 | 0.216 | 0.197
 | (a) | The increase in short-term investments from March 2012 to March 2013 is partly due to proceeds received from the separation of PPG's commodity chemicals segment in January 2013.
 | (b) | Inclusive of PPG's former Commodity Chemicals business that was separated in January 2013.
 |  | Excluding the Commodity Chemicals business, operating working capital was $2,989 or 22.4 percent at March 31, 2012 and $2,634 million or 20.3 percent at December 31, 2012.
 | (c ) | Operating working capital includes (1) receivables from customers, net of the allowance for doubtful accounts, plus (2) inventories on a first-in, first-out (FIFO) basis, less (3) the trade creditor's liability.
 | BUSINESS SEGMENT INFORMATION (unaudited)
 |  |  | 3 Months Ended
 |  |  | March 31
 |  |  | 2013 | 2012
 |  |  | (millions)
 | Net sales
 |  | Performance Coatings | 1124 | 1150
 |  | Industrial Coatings | 1183 | 1076
 |  | Architectural [NAME] | 454 | 517
 |  | Optical and Specialty Materials | 314 | 334
 |  | [NAME] | 256 | 256
 |  | TOTAL
 | Segment income
 |  | Performance Coatings | 172 | 160
 |  | Industrial Coatings | 178 | 150
 |  | Architectural [NAME] | 20 | 16
 |  | Optical and Specialty Materials | 99 | 109
 |  | [NAME] | 5 | 8
 |  | TOTAL
 | Legacy items (Note A) |  | -46 | -175
 | Business restructuring (Note B) |  | 0 | -208
 | Acquisition-related costs (Note C) |  | -7 | -6
 | Interest expense, net of interest income |  | -43 | -41
 | Other unallocated corporate expense |  | -60 | -60
 | INCOME BEFORE INCOME TAXES
 | Note A:
 |  | Legacy items include current costs related to former operations of the company, including pension and other postretirement benefit costs, certain charges for legal matters and environmental remediation costs, and certain charges which are considered to be unusual or nonrecurring including the earnings impact of the proposed asbestos settlement. Legacy items also include equity earnings from PPG's approximate 40 percent investment in the former automotive glass and services business.
 |  | The quarter ended March 31, 2013 includes pretax charges of  $18 million charge for final settlement of certain legacy Canadian pension plans and $12 million for environmental remediation activities at a legacy operating plant site.  The quarter ended March 31, 2012 includes a pretax charge of $159 million related primarily to continued environmental remediation activities at PPG’s former Jersey City, N.J., manufacturing plant and associated sites.
 | Note B:
 |  | The quarter ended March 31, 2012 includes business restructuring charges of $65 million for the Performance Coatings segment, $46 million for the Industrial Coatings segment, $63 million for the Architectural Coatings - EMEA segment, $32 million for the Optical and Specialty Materials segment,  and $2 million for Corporate. These costs are considered to be unusual and non-recurring and will not reduce the segment earnings used to evaluate the performance of the operating segments.
 | Note C:
 |  | The three months ended March 31, 2013 includes $4 million of certain acquisition-related costs.  In addition, the flow-through cost of sales of the step up to fair value of inventory acquired from Spraylat of $3 million in 2013 and [NAME] and Colpisa of $6 million in 2012 are included in this line.  These costs are considered to be unusual and non-recurring and will not reduce the segment earnings used to evaluate the performance of the operating segments.