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PPG & Satys Partner on Aerospace E-Coat System in France

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PPG Industries Inc. (PPG - Free Report) has announced a collaboration with Satys, a France-based industrial organization that specializes in aircraft sealing, painting and surface treatment, to supply electrocoating (e-coat) of original equipment manufacture (OEM) aircraft parts. Satys will install a PPG AEROCRON e-coat priming system at its facility in Dugny, France, under the terms of the deal.

Metal aircraft parts are dipped into a solution of chrome-free electrocoat primer and charged with electrical current to apply the coating, resulting in an even surface finish, constant coating thickness and no drips, runs, or sags in the cured paint film utilizing PPG Aerocron technology. E-coat is a waterborne, sustainable technology that generates little waste, has low volatile organic compounds (VOCs) and helps minimize airplane fuel consumption due to weight savings from less paint usage.

The 2,100-gallon (eight cubic meters) e-coat tank at Dugny will be Europe's largest, allowing a single operator to coat many pieces simultaneously, enhancing process efficiency. The coated parts are resistant to corrosion and chemicals and are compatible with industry-standard pre-treatments and topcoats.

Shares of PPG have gained 29.7% over the past year compared with a 13.8% rise of its industry.

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The company, on its first-quarter call, noted that it expects adjusted earnings of $6.95-$7.25 per share for 2023. The prediction excludes amortization expense, non-cash pension settlement charge, benefit from insurance recovery and costs related to earlier approved and communicated business restructuring.

Factoring in current global economic activities, geopolitical issues in Europe and higher interest rates in most developed countries, PPG expects sales volumes in second-quarter 2023 to be flat with the potential for slight improvement or decrease of a low single-digit percentage year over year. Adjusted earnings for the second quarter are projected in the band of $2.05-$2.15.

Zacks Rank & Key Picks

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

Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , Gold Fields Limited (GFI - Free Report) and Linde plc (LIN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of 13.64%, on average. KOP has gained 33.6% in a year.

The Zacks Consensus Estimate for Gold Fields’ current-year earnings has been revised 23.5% upward in the past 60 days. The consensus estimate for current-year earnings for GFI is currently pegged at $1.05, indicating year-over-year growth of 8.3%. The company’s shares have gained 60.3% in the past year.

The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 3.8% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9%, on average. The company’s shares have gained 24.8% in the past year.

 

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