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PPG Industries' (PPG) Marine Coating Saves Power, Cuts Emissions

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PPG Industries (PPG - Free Report) recently launched PPG Sigmaglide 2390, a marine coating that significantly reduces power consumption and carbon emissions. This new coating also provides high performance and has no adverse impact on the marine environment.

PPG Sigmaglide is a biocide-free fouling coating based on the company’s revolutionary PPG HydroReset technology that creates a super smooth, friction-free coating when immersed under water. This surface also remains unrecognized by marine organisms.

The coating also allows vessels to maintain a clean hull and lower drag, enabling them to achieve savings in power of up to 20%. The coating also results in speed loss performance of less than 1%, along with reducing carbon dioxide emissions of up to 35%, when compared with traditional antifouling coatings.

The coating also allows its users to achieve their target of reducing greenhouse gas emissions under the International Maritime Organization’s energy efficiency (EEXI and EEDI) and carbon intensity (CII) requirements. PPG Sigmaglide is a unique fouling coating that efficiently helps ship operators and owners work at an average one-knot higher speed while remaining CII compliant.

Shares of PPG have gained 5.9% against a 4.1% fall recorded by its industry.

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The company, on its fourth-quarter call, said that it expects soft economic activity in Europe and China in the first quarter of 2023. However, the company will prioritize supporting customers by providing superior service and products, optimizing inventory levels and executing several cost savings initiatives. It also expects a rebound in demand for its technology-advantaged aerospace products, moderate raw material costs and stable coatings demand in Europe starting in the second quarter. It also anticipates a strong economic recovery in China to boost earnings.

PPG projects adjusted EPS in the band of $1.10-$1.20 for the first quarter, barring amortization expense of 13 cents and costs related to previously approved and communicated business of 2 cents. It also sees reported EPS for the first quarter between 95 cents and $1.05. The company expects aggregate sales volumes for the quarter to be down a mid-single-digit percentage on a year-over-year basis. 

 

PPG Industries, Inc. Price and Consensus

PPG Industries, Inc. Price and Consensus

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the basic materials space are Olympic Steel, Inc.  (ZEUS - Free Report) , ATI Inc. (ATI - Free Report) , and Cal-Maine Foods, Inc. (CALM - Free Report) . ATI currently carries a Zacks Rank #2 (Buy), while ZEUS and CALM sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Olympic Steel’s shares have gained 83.9% in the past year. The Zacks Consensus Estimate for ZEUS’s current-year earnings has been revised 61% upward in the past 60 days. ZEUS topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.

ATI’s shares have gained 52.5% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.

ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.

Cal-Maine’s shares have gained 28.6% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 19% upward in the past 60 days.

CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.

 





 

 


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