Coatings giant PPG Industries
’ (PPG - Analyst Report
) fiber glass unit has secured certification from Germanischer Lloyd (GL) for technical competence in mechanical and analytical testing at its Fiber Glass Science and Technology Center in Suzhou, China. GL is a top international certification body in the wind energy space.
The Suzhou technology center, set up in 2007, provides equipment for fabricating fiber-reinforced plastic products and testing composites for static and dynamic mechanical properties. It offers consulting, technical support and material evaluation to customers globally, helping them to expand their composite products and business.
The center is well equipped for testing and analyzing fiber glass materials and composites. The GL certification is a testimony of the technical competence of PPG Industries’ wide range of services (including composite testing and evaluation) and its technical experts. It highlights the company’s expertise in mechanical and analytical testing and offering accurate and reliable results and evaluations to customers.
PPG Industries’ fiber glass business makes reinforcement materials for thermoset and thermoplastic composite applications with manufacturing and research facilities across the U.S., Europe and Asia. It caters to an array of markets including transportation, energy, infrastructure and consumer markets.
PPG Industries beat earnings expectations in the second quarter of 2013, reported on Jul 18, riding on its cost reduction initiatives and strong results from its coatings business, backed by sales gains across automotive OEM and aerospace markets.
Adjusted earnings of $2.45 per share for the quarter topped the Zacks Consensus Estimate of $2.34. Revenues rose by double digits but missed expectations. Strong momentum across North America and Asia was somewhat masked by sustained weakness in Europe.
Sales from the company’s Glass segment fell roughly 1% to $269 million as lower volumes for both fiber and flat glass more than offset better flat glass pricing. PPG Industries expects earnings momentum to continue in the third quarter.
PPG Industries is expected to benefit from strength across the North American automotive OEM and aerospace markets. However, it remains exposed to a challenging demand environment in Europe.
PPG Industries currently carries a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are Northern Technologies International Corp.
, Cytec Industries Inc.
and Eastman Chemical Co.
(EMN - Analyst Report
) . All of them hold a Zacks Rank #2 (Buy).