Financial Highlights

$MM, except per share data	2017	2016	$ Change	% Change
Net Sales	$14,750	$14,270	$480	3%
Net income (attributable to PPG)
Income from continuing operations	$1,371	$547	$824	151%
Income from discontinued operations1	220	330	$(110)	-33%
Net income	$1,591	$877	$714	81%
Earnings per diluted share from continuing operations	$5.32	$2.05	$3.27	160%
Earnings per diluted share from discontinued operations1	0.85	1.23	$(0.38)	-31%
Total earnings per diluted share	$6.17	$3.28	$2.89	88%
Adjusted earnings per diluted share from continuing operations2	$5.87	$5.67	$0.20	4%
Dividends per share	$1.70	$1.56	$0.14	9%
Return on average capital	15.3%	6.7%	8.6%	128%
Operating cash flow (from continuing operations)	$1,556	$1,218	$338	28%
Capital spending (including business acquisitions)	$685	$729	$(44)	-6%
Research and development	$474	$479	$(5)	-1%
Average shares outstanding - assuming dilution	257.8	267.4	(9.6)	-4%
Average number of employees	47,200	47,000	200	0%
PPG shareholders' equity	$5,558	$4,826	$732	15%

1. Includes an after-tax gain of $213 million resulting from the sale of our North American Fiber Glass business in 2017 and $267 million resulting from the sale of our Flat Glass business in 2016.
2. Adjusted amounts in 2017, 2016 and 2015 exclude after tax net charges of $0.55, $3.62 and $0.54, respectively, which are included in reported earnings per diluted share. For detailed information regarding these adjustments, see the Regulation G Reconciliation in Item 7 of the Form 10-K.
    

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   Adjusted amounts in 2014 exclude nonrecurring per diluted share amounts of $0.72 for a debt refinancing charge; $0.30 for environmental remediation; $0.13 for transaction-related costs; and $0.02 for a pension settlement charge. The adjusted amounts are reduced by $0.21 for a gain on asset dispositions and $0.11 for a favorable foreign tax ruling. Adjusted amounts in 2013 exclude nonrecurring per diluted share amounts of $0.24 for business restructuring; $0.22 for environmental remediation; $0.08 for transaction-related costs; and $0.04 for a legacy pension settlement charge. The adjusted amounts are reduced by $0.03 for the retroactive benefit of a U.S. tax law change.

Quarterly Stock Market Price
	2017			2016
Quarter Ended	High	Low	Close	High	Low	Close
31-Mar	$113.49	$94.57	$105.08	$112.10	$88.37	$111.49
30-Jun	$113.00	$104.18	$109.96	$117.00	$98.08	$104.15
30-Sep	$113.67	$100.45	$108.66	$110.14	$99.78	$103.36
31-Dec	$119.85	$108.43	$116.82	$104.08	$89.64	$94.76

The number of holders of record of PPG common stock as of January 31, 2018 was 13,739 as shown on the records of the Company’s transfer agent.

Dividends
	2017		2016
Month of Payment	Amount ($MM)	Per Share	Amount ($MM)	Per Share
March	$103	$0.40	$96	$0.36
June	$102	$0.40	$107	$0.40
September	$116	$0.45	$106	$0.40
December	$113	$0.45	$105	$0.40
TOTAL	$434	$1.70	$414	$1.56

PPG has paid uninterrupted annual dividends since 1899. The latest quarterly dividend of 45 cents per share was approved by the board of directors on January 18, 2018, payable March 12, 2018 to shareholders of record February 16, 2018.

Comparison of Five-Year Cumulative Total Return
Comparison of Ten-Year Cumulative Total Return

These line graphs compare the yearly percentage changes in the cumulative total shareholder value return of the company’s common stock with the cumulative total return of the Standard & Poor’s Composite 500 Stock Index (“S&P 500 Index”) and a defined Peer Group, for the five-year and ten-year periods beginning Dec. 31, 2012, and Dec. 31, 2007, respectively, and ending Dec. 31, 2017. The information presented in these graphs assumes that the investment in the company’s common stock and each index was $100 on Dec. 31, 2012 and Dec. 31, 2007 and that all dividends were reinvested. The Peer Group includes AkzoNobel N.V., Axalta Coatings Systems Ltd., DowDupont Inc., Masco Corp., RPM International Inc., and The Sherwin-Williams Co.