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PPG Agrees to Sell Remaining Fiberglass Operations to Nippon
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PPG Industries (PPG - Free Report) declared that it has reached a definitive agreement to sell the remaining fiberglass operations to Nippon Electric Glass Co. Ltd. (“NEG”), a leading fiberglass maker. The transaction, which is subject to customary closing conditions, is expected to close in the second half of 2017. Pre-tax proceeds from the divestiture are expected to be around $545 million, subject to closing adjustments.
PPG Industries’ remaining fiberglass operations include manufacturing plants in Chester, SC, and Lexington and Shelby, NC; and administrative and research-and-development operations in Shelby and in Harmar, PA.
PPG Industries completed the sale of its European fiberglass operations to NEG and divested its ownership interests in two Asian fiberglass joint ventures in 2016. It also wrapped up the sale of its North American flat glass business last year.
According to the company, this transaction will mark the end of PPG’s history as a manufacturer of fiberglass. The deal serves as the final step in divesting PPG’s non-core businesses and will channelize the company’s focus on paints, coatings and specialty materials businesses.
PPG Industries has outperformed the Zacks categorized Chemicals-Diversified industry over the last six months. The company’s shares have gained around 12.6% over this period, compared with roughly 7.2% gain recorded by the industry.
The company 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.
The company also has an impressive record of returning cash to shareholders through dividends and share buybacks. PPG Industries expects to deploy $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. The company also continues to face macroeconomic challenges. It sees moderate growth in emerging economies in 2017. The company’s operating results are also exposed to the cost of raw materials and energy.
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PPG Agrees to Sell Remaining Fiberglass Operations to Nippon
PPG Industries (PPG - Free Report) declared that it has reached a definitive agreement to sell the remaining fiberglass operations to Nippon Electric Glass Co. Ltd. (“NEG”), a leading fiberglass maker. The transaction, which is subject to customary closing conditions, is expected to close in the second half of 2017. Pre-tax proceeds from the divestiture are expected to be around $545 million, subject to closing adjustments.
PPG Industries’ remaining fiberglass operations include manufacturing plants in Chester, SC, and Lexington and Shelby, NC; and administrative and research-and-development operations in Shelby and in Harmar, PA.
PPG Industries completed the sale of its European fiberglass operations to NEG and divested its ownership interests in two Asian fiberglass joint ventures in 2016. It also wrapped up the sale of its North American flat glass business last year.
According to the company, this transaction will mark the end of PPG’s history as a manufacturer of fiberglass. The deal serves as the final step in divesting PPG’s non-core businesses and will channelize the company’s focus on paints, coatings and specialty materials businesses.
PPG Industries has outperformed the Zacks categorized Chemicals-Diversified industry over the last six months. The company’s shares have gained around 12.6% over this period, compared with roughly 7.2% gain recorded by the industry.
The company 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.
The company also has an impressive record of returning cash to shareholders through dividends and share buybacks. PPG Industries expects to deploy $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. The company also continues to face macroeconomic challenges. It sees moderate growth in emerging economies in 2017. The company’s operating results are also exposed to the cost of raw materials and energy.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the chemical space include BASF SE (BASFY - Free Report) , The Chemours Company (CC - Free Report) and Kronos Worldwide Inc (KRO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF has expected long-term growth of 8.6%.
Chemours has expected long-term growth of 15.5%.
Kronos has expected long-term growth of 5%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>