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PPG Industries to Showcase High Transfer Efficiency Coatings

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PPG Industries (PPG - Free Report) will exhibit advanced Envirocron high transfer efficiency (“HTE") powder coatings at the Powder Coating 2017 Technical Conference in Indianapolis.

Being TGIC-free and bisphenol A-free, Envirocron HTE coatings help to protect and beautify geometrically complex surfaces. Envirocron HTE powder coatings when applied to metal racks and components have faster build-rates than traditional polyester coatings. Envirocron HTE coatings have transfer-efficiency rate of 85% or more and are used on spray-to-waste applicators to  minimize product loss.

The products to be featured from the Envirocron family of powder coatings include Envirocron XMR coatings and Enviracryl acrylic-based powder coatings. Envirocron XMR coatings feature a proprietary PPG formulation that enables them to achieve hardness and mar resistance as compared to porcelain enamel coatings. Enviracryl coatings provide clear-coat protection and high-gloss color for class A-type industrial finishes.

PPG Industries has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 8.3% over this period compared with roughly 7.5% gain recorded by the industry.



The company’s Industrial Coatings unit recorded sales of $1.44 billion in fourth-quarter 2016, up almost 5% from the prior-year period. Total sales volume improved by almost 5%, led by high growth in the emerging markets.

However, net income for the segment fell around 2% year over year to $236 million, due to higher transportation and logistics costs along with unfavorable currency translation, which more than offset growth in sales volume and continued lower costs from restructuring and manufacturing cost efficiencies as well as acquisition-related income.

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 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 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.

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