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PPG Industries Completes Waterborne Coatings Production Line
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PPG Industries (PPG - Free Report) has completed a new $19 million high-performance waterborne and high-solids coatings production line at its Wuhu, China facility. The new line improves production and service capabilities of the company’s automotive coatings business in China.
The automakers in China increased the use of low-volatile organic compound coatings due to the imposition of stringent environmental regulations. The new line is an addition to the production of environment-friendly waterborne coatings to meet the growing demand of automotive manufacturers and parts makers across China. The new topcoat manufacturing facility combines process advancements with a higher degree of automation. Storage tanks, added to the facility will likely help in reducing waste at the Wuhu plant.
PPG Industries has underperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 7% over this period compared with roughly 8.6% gain recorded by the industry.
PPG Industries has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.
PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.
PPG Industries also has an impressive record of returning cash to shareholders through dividends and share buybacks. The company returned nearly $1.5 billion to its shareholders in the form of dividend and share repurchases in 2016. The company also raised its quarterly dividend by 11% in 2016. PPG Industries anticipates deploying $2.5–$3.5 billion cash in acquisitions and share repurchases for 2017 and 2018 combined.
PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges and witnesses uneven growth in emerging economies in 2017. It is also exposed to volatility in raw materials and energy costs.
PPG Industries currently carries a Zacks Rank #3 (Hold).
Key Picks
Better-ranked companies in the chemical space include Univar Inc. , The Chemours Company (CC - Free Report) and Albermale Corporation (ALB - Free Report) .
Chemours has expected long-term growth of 15.5% and carries a Zacks Rank #2 (Buy).
Albemarle has expected long-term growth of 10% and has a Zacks Rank #2.
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PPG Industries Completes Waterborne Coatings Production Line
PPG Industries (PPG - Free Report) has completed a new $19 million high-performance waterborne and high-solids coatings production line at its Wuhu, China facility. The new line improves production and service capabilities of the company’s automotive coatings business in China.
The automakers in China increased the use of low-volatile organic compound coatings due to the imposition of stringent environmental regulations. The new line is an addition to the production of environment-friendly waterborne coatings to meet the growing demand of automotive manufacturers and parts makers across China. The new topcoat manufacturing facility combines process advancements with a higher degree of automation. Storage tanks, added to the facility will likely help in reducing waste at the Wuhu plant.
PPG Industries has underperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 7% over this period compared with roughly 8.6% gain recorded by the industry.
PPG Industries has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.
PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.
PPG Industries also has an impressive record of returning cash to shareholders through dividends and share buybacks. The company returned nearly $1.5 billion to its shareholders in the form of dividend and share repurchases in 2016. The company also raised its quarterly dividend by 11% in 2016. PPG Industries anticipates deploying $2.5–$3.5 billion cash in acquisitions and share repurchases for 2017 and 2018 combined.
PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges and witnesses uneven growth in emerging economies in 2017. It is also exposed to volatility in raw materials and energy costs.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
PPG Industries currently carries a Zacks Rank #3 (Hold).
Key Picks
Better-ranked companies in the chemical space include Univar Inc. , The Chemours Company (CC - Free Report) and Albermale Corporation (ALB - Free Report) .
Univar has expected long-term growth of 9.4% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has expected long-term growth of 15.5% and carries a Zacks Rank #2 (Buy).
Albemarle has expected long-term growth of 10% and has a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>