Spreadsheet: 097d8c01-3226-4156-86e0-4c29f5c24bec
Sheet: Sheet1

 | PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
 | CONDENSED STATEMENT OF OPERATIONS (unaudited)
 | (All amounts in millions except per-share data)
 |  |  | 3 Months Ended |  | 6 Months Ended
 |  |  | June 30 |  | June 30
 |  |  | 2013 | 2012 | 2013 | 2012
 | Net sales |  | 4095 | 3528 | 7426 | 6861
 | Cost of sales, exclusive of depreciation and amortization (Note A) |  | 2343 | 2066 | 4290 | 4012
 | Selling, R&D and administrative expenses (Note B) |  | 1105 | 905 | 2017 | 1838
 | Depreciation (Note B) |  | 90 | 76 | 171 | 155
 | Amortization (Note B) |  | 34 | 26 | 60 | 55
 | Interest expense |  | 47 | 50 | 100 | 101
 | Interest income |  | -9 | -9 | -19 | -19
 | Asbestos settlement - net |  | 3 | 3 | 6 | 6
 | Business restructuring |  | 0 | 0 | 0 | 208
 | Other (income)/charges - net (Note C) |  | -7 | -15 | -6 | 126
 | INCOME BEFORE INCOME TAXES |  | 489 | 426 | 807 | 379
 | Income tax expense (Note D) |  | 118 | 98 | 182 | 67
 | Income from continuing operations, net of income taxes |  | 371 | 328 | 625 | 312
 | Income from discontinued operations, net of income taxes (Note E) |  | 0 | 68 | 2191 | 135
 | Net income attributable to the controlling and noncontrolling interests |  | 371 | 396 | 2816 | 447
 |  | Less: Net income attributable to noncontrolling interests | -30 | -34 | -65 | -72
 | NET INCOME (ATTRIBUTABLE TO PPG) |  | 341 | 362 | 2751 | 375
 | Amounts attributable to PPG:
 |  | Income from continuing operations, net of tax | 341 | 297 | 560 | 247
 |  | Income from discontinued operations, net of tax | 0 | 65 | 2191 | 128
 | Net income (attributable to PPG) |  | 341 | 362 | 2751 | 375
 | Earnings per common share (attributable to PPG)
 |  | Income from continuing operations, net of tax | 2.38 | 1.94 | 3.86 | 1.61
 |  | Income from discontinued operations, net of tax | 0 | 0.43 | 15.11 | 0.84
 | Net income (attributable to PPG) |  | 2.38 | 2.37 | 18.97 | 2.45
 | Earnings per common share (attributable to PPG) - assuming dilution
 |  | Income from continuing operations, net of tax | 2.35 | 1.92030547992993 | 3.82 | 1.6
 |  | Income from discontinued operations, net of tax | 0 | 0.4195847876683056 | 14.94 | 0.82
 | Net income (attributable to PPG) |  | 2.35 | 2.34 | 18.76 | 2.42
 | Average shares outstanding |  | 143.4 | 153.2 | 144.97 | 153
 | Average shares outstanding - assuming dilution |  | 145 | 155 | 146.659 | 154.7
 | See accompanying notes on page 2
 | Note A:
 |  | Cost of sales, exclusive of depreciation and amortization in the three months ended June 30, 2013, includes the flow-through cost of sales of the step up to fair value of inventory acquired of $13 million, principally from the AkzoNobel North American architectural coatings business.  The six months ended June 30, 2013 includes $16 million for final settlement of certain legacy Canadian pension plans and $16 million for the flow-through cost of sales of the step up to fair value of inventory acquired.  The six months ended June 30, 2012 includes the flow through cost of sales of the step up to fair value of inventory acquired related to [NAME] and Colpisa of $6 million.
 | Note B:
 |  | Selling, R&D and administrative expenses includes $8 million of acquisition related charges during the quarter ended June 30, 2013.  For the six months ended June 30, 2013, the caption includes $2 million for final settlement of certain legacy Canadian pension plans and $12 million for acquisition related charges.  Selling and administrative expenses, depreciation and amortization are higher in the three and six-month periods of 2013 compared to 2012 primarily due to the inclusion of an architectural coatings business acquired from AkzoNobel in the second quarter of 2013.
 | Note C:
 |  | Other income for the three months ended June 30, 2013 was reduced as a result of lower international licensing and equity earnings, primarily in the [NAME] segment.  The six months ended June 30, 2013 includes a pretax charge of $12 million related to environmental remediation at a legacy manufacturing site.  The six months ended June 30, 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 June 30, 2013 includes tax benefits of $6 million or 28.5 percent for acquisition related costs.  The effective tax rate on the remaining pre tax earnings from continuing operations was approximately 24 percent resulting in tax expense of $124 million.
 |  | The effective rate on pretax earnings from continuing operations for the six months ended June 30, 2013 includes tax benefits of $8 million or 28.5 percent for acquisition related costs, $5 million or 26.7 percent for final settlement of legacy pension plans, and $4 million or 37.4 percent for a legacy environmental remediation charge.  The six-month period 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 approximately 24 percent resulting in tax expense of $209 million.
 |  | The effective tax rate on pretax earnings for the six months ended June 30, 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.
 | 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 six months ended June 30, 2013 income from discontinued operations includes a net gain on the separation transaction of $2.2 billion.
 |  |  | June 30 | June 30 | Dec 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | ($ in millions)
 | Current assets:
 |  | Cash and cash equivalents | 1243 | 1017 | 1306
 |  | Short-term investments (a) | 538 | 230 | 1087
 |  | Receivables - net | 3223 | 3310 | 2813
 |  | Inventories | 1862 | 1775 | 1687
 |  | Other | 844 | 819 | 822
 |  | Total current assets | 7710 | 7151 | 7715
 | Current liabilities:
 |  | Short-term debt and current portion of long-term debt | 24 | 647 | 642
 |  | Asbestos settlement | 703 | 642 | 683
 |  | Accounts payable and accrued liabilities | 3379 | 3276 | 3136
 |  | Total current liabilities | 4106 | 4565 | 4461
 | Long-term debt |  | 3355 | 2964 | 3368
 | PPG OPERATING METRICS  (unaudited)
 |  |  |  |  | Dec. 31
 |  |  | 2013 | 2012 (b) | 2012 (b)
 | ($ in millions)
 | Operating Working Capital (c )
 |  | Amount | 3149 | 3247 | 2878
 |  | As a percent of quarter sales, annualized |  | 0.2052 | 0.197
 | (a) | The decrease in short-term investments from December 2012 to June 2013 is partly due to the purchase of AkzoNobel's North American architectural coatings business on April 1, 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 $3,001 million or 21.3 percent at June 30, 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 |  | 6 Months Ended
 |  |  | June 30 |  | June 30
 |  |  | 2013 | 2012 | 2013 | 2012
 |  |  | (millions) |  | (millions)
 | Net sales
 |  | Performance Coatings | 1688 | 1241 | 2812 | 2391
 |  | Industrial Coatings | 1241 | 1099 | 2424 | 2175
 |  | Architectural [NAME] | 571 | 601 | 1025 | 1118
 |  | Optical and Specialty Materials | 326 | 314 | 640 | 648
 |  | [NAME] | 269 | 273 | 525 | 529
 |  | TOTAL | 4095 | 3528 | 7426 | 6861
 | Segment income
 |  | Performance Coatings | 255 | 204 | 427 | 364
 |  | Industrial Coatings | 191 | 143 | 369 | 293
 |  | Architectural [NAME] | 69 | 64 | 89 | 80
 |  | Optical and Specialty Materials | 96 | 95 | 195 | 204
 |  | [NAME] | 8 | 23 | 13 | 31
 |  | TOTAL | 619 | 529 | 1093 | 972
 | Legacy items (Note A) |  | -11 | -15 | -57 | -190
 | Business restructuring (Note B) |  | 0 | 0 | 0 | -208
 | Acquisition-related costs (Note C) |  | -21 | 0 | -28 | -6
 | Interest expense, net of interest income |  | -38 | -40 | -81 | -81
 | Other unallocated corporate expense |  | -60 | -48 | -120 | -108
 | INCOME BEFORE INCOME TAXES |  | 489 | 426 | 807 | 379
 | 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 six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 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 and six months ended June 30, 2013 include $8 million and $12 million of certain acquisition-related costs, respectively.  In addition, the three and six months ended June 30, 2013 include the flow-through cost of sales of the step up to fair value of inventory acquired of $13 million and $16 million, respectively, principally from an architectural coatings business acquired from AkzoNobel.  The six months ended June 30, 2012 includes the flow-through cost of sales of the step up to fair value of inventory acquired from Dyrup and Colpisa of $6 million.  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.