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PPG Industries Gets EASA Clearance for Hawker 800 Windshields

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PPG Industries’ (PPG - Free Report) has received approval from the European Aviation Safety Agency (EASA) for the company’s new-design glass-faced acrylic windshields for Hawker 800 series business jets. The series include Hawker 750, 800, 800XP, 800 (U-125A), 850XP, 900XP and 1000 aircraft.

The approval entitles PPG Industries to directly sell the windshields to aircraft owners and operators in Europe. Prior to this, the company received Parts Manufacturer Approval from the Federal Aviation Administration for this windshield, following which its demand by U.S. operators grew steadily. With the latest EASA approval, the company is now able to offer this product to European operators.

The newly designed windshield provides superior scratch, abrasion and chemical resistance along with an improved, more reliable anti-ice heating system, higher visible light transmittance and improved precipitation-static drain. Additionally, PPG industries’ Surface seal hydrophobic coating helps shed water for better pilot visibility during wet conditions without wipers.

PPG Industries is set to display a Hawker 800 windshield at its exhibit booth N5109 at the National Business Aviation Association Business Aviation Convention & Exhibition (NBAA-BACE) at the Las Vegas Convention Center from Oct 10-12.

The company has underperformed the industry over a year. The company’s shares have moved up around 20.7% over this period, compared with roughly 31.8% gain recorded by the industry.

 


PPG Industries expects modest global economic growth. Also, the company anticipates a higher level of earnings-accretive cash deployment in the second half of 2017 including acquisitions and share repurchases.

PPG Industries is taking steps for growing organically. The company is also taking measures to lower costs. The company also remains committed to deploy cash on acquisitions and share repurchases. It plans to deploy $2.5-$3.5 billion cash for acquisitions and share repurchases in 2017 and 2018 combined and is now targeting the top end of that range at a minimum.

Additionally, the company remains on track with its cost cutting and restructuring actions and is expected to deliver $120-$130 million in annual savings, with $40-$50 million of savings expected to be realized in 2017.

However, PPG Industries faces currency headwind and macroeconomic challenges. Some of its end-markets including marine still remain sluggish. It is also exposed to raw materials cost pressure.

PPG Industries, Inc. Price and Consensus

 

PPG Industries currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the chemical space are The Chemours Company (CC - Free Report) , FMC Corporation (FMC - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Chemours has expected long-term earnings growth of 15.5% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FMC has expected long-term earnings growth of 11.3% and flaunts a Zacks Rank #1.

Air Products has expected long-term earnings growth of 12.1% and carries a Zacks Rank #2 (Buy).

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