PPG announced in a recent press release that it plans to complete a “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.”

According to Bloomberg, the move was “suggested by investor Trian Fund Management, which also has pressed to oust the chief executive officer.”

The strategic review is one of several targets the company has for 2019, which also include:

  • Sales growth of 3 to 5 percent;
  • Adjusted earnings per share growth, excluding currency translation impacts, of 7 to 10 percent;
  • Strong alignment with shareholder value creation by maintaining 10 percent EPS growth;
  • Deliver at least $70 million in cost savings;
  • Recommend an increase in the annual per share dividend to its board of directors; and
  • 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.

“These targets are consistent with our hallmarks of delivering innovative products to our customers, driving operational excellence and rewarding shareholders,” says Michael H. McGarry, PPG chairman and CEO. “…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.”