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PPG Industries to Invest in Dispense Cell at China Facility

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PPG Industries, Inc. (PPG - Free Report) will make a $1.7 million investment in its new dispense cell in its Kunshan, China coatings manufacturing facility. The new cell will boost flexibility in production and productivity at the site, while delivering substantial cost savings, emission reduction and shorter delivery cycles. The dispense cell is expected to be onstream in January 2019.

PPG Industries’ Kunshan facility produces and supplies protective and marine coatings in China. The dispense cell will make the required quantity and quality of protective coatings product within short time in an enclosed process that maximizes environmental performance.
 
PPG Industries has outperformed the industry in the past year. The company’s shares have lost 7% compared with 19.7% decline of the industry.



In its third-quarter earnings call, PPG Industries stated that it sees normal business seasonality in the fourth quarter. It also expects overall global economic growth to remain positive. The company witnessed higher industrial production volatility and inconsistency in emerging region growth rates during the third quarter and expects this to persist in the fourth quarter. The company projects fourth-quarter earnings per share of $1.03-$1.13.

PPG Industries’ Performance Coatings segment sales rose more than 2% at constant currency in the third quarter as higher selling prices more than offset the modest decline in sales volumes. The company’s Industrial Coatings segment saw a year-over-year uptick in sales. However, net income at both the segments declined year over year due to raw material and logistics cost inflation. 

PPG Industries, Inc. Price and Consensus

 

Zacks Rank & Stocks to Consider

PPG Industries currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the basic materials space include CF Industries Holdings, Inc (CF - Free Report) , Methanex Corporation (MEOH - Free Report) and The Mosaic Company (MOS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have risen 14.3% in the past year.

Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained 2.7% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have rallied 51.9% in the past year.

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