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PPG Signs Pension Transfer Agreement for 11,000 Retirees
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PPG Industries’ (PPG - Free Report) 11,000 retirees will be provided group annuities by MassMutual, per an agreement signed by both companies. This agreement reduces PPG Industries’ pension obligations considerably.
PPG Industries had earlier announced its agreement with MassMutual and MetLife (MET - Free Report) to transfer administration and obligation of pension liabilities for 13,400 current retirees to both the insurance companies. This agreement is part of the larger contract.
Under the terms of the agreement, MassMutual and MetLife will provide the monthly benefits equally. While MassMutual will administer the benefit to be paid to each retiree, MetLife will provide its share through an administration agreement with the former. MassMutual is highly rated by credit agencies and currently provides annuities to over 3 million retirees.
PPG Industries has secured the future of its retirees through this agreement with financially strong insurers. The company has also lowered its debt obligations by shifting the pension liabilities from its balance sheet.
Shares of PPG Industries rose around 1.9% in the trading session on Tuesday, closing the day at $100.56.
PPG Industries’ adjusted earnings per share for first-quarter 2016 rose 11% year over year, marking the thirteenth consecutive quarter of double-digit growth in earnings. The bottom line also beat the Zacks Consensus Estimate by a penny. Results were aided by higher sales volume, cost management and acquisition-related gains.
However, sales of $3.7 billion lagged the Zacks Consensus Estimate. The company’s long term debt was $4.23 billion at the end of the quarter, up 5.5% year over year.
The company is working on developing as well as commercializing new consumer-driven technology. It is also improvising branding strategies. As in the past, management is focused on reducing costs and completing the previously announced restructuring program. PPG Industries has also reaffirmed its plans to deploy $2–$2.5 billion cash in the 2015–2016 period toward acquisitions and share repurchases.
PPG Industries currently holds a Zacks Rank #2 (Buy).
Some other favorably ranked stocks in the chemical space include Albemarle Corporation (ALB - Free Report) and Innospec Inc. (IOSP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
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PPG Signs Pension Transfer Agreement for 11,000 Retirees
PPG Industries’ (PPG - Free Report) 11,000 retirees will be provided group annuities by MassMutual, per an agreement signed by both companies. This agreement reduces PPG Industries’ pension obligations considerably.
PPG Industries had earlier announced its agreement with MassMutual and MetLife (MET - Free Report) to transfer administration and obligation of pension liabilities for 13,400 current retirees to both the insurance companies. This agreement is part of the larger contract.
Under the terms of the agreement, MassMutual and MetLife will provide the monthly benefits equally. While MassMutual will administer the benefit to be paid to each retiree, MetLife will provide its share through an administration agreement with the former. MassMutual is highly rated by credit agencies and currently provides annuities to over 3 million retirees.
PPG Industries has secured the future of its retirees through this agreement with financially strong insurers. The company has also lowered its debt obligations by shifting the pension liabilities from its balance sheet.
PPG INDS INC Price
PPG INDS INC Price | PPG INDS INC Quote
Shares of PPG Industries rose around 1.9% in the trading session on Tuesday, closing the day at $100.56.
PPG Industries’ adjusted earnings per share for first-quarter 2016 rose 11% year over year, marking the thirteenth consecutive quarter of double-digit growth in earnings. The bottom line also beat the Zacks Consensus Estimate by a penny. Results were aided by higher sales volume, cost management and acquisition-related gains.
However, sales of $3.7 billion lagged the Zacks Consensus Estimate. The company’s long term debt was $4.23 billion at the end of the quarter, up 5.5% year over year.
The company is working on developing as well as commercializing new consumer-driven technology. It is also improvising branding strategies. As in the past, management is focused on reducing costs and completing the previously announced restructuring program. PPG Industries has also reaffirmed its plans to deploy $2–$2.5 billion cash in the 2015–2016 period toward acquisitions and share repurchases.
PPG Industries currently holds a Zacks Rank #2 (Buy).
Some other favorably ranked stocks in the chemical space include Albemarle Corporation (ALB - Free Report) and Innospec Inc. (IOSP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>