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PPG Opens New Facility at Ohio

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PPG Industries Inc. (PPG - Free Report) announced the unveiling of a world-class organic light-emitting diode (OLED - Free Report) materials production facility at its Barberton, Ohio plant. This new facility will aid the expanded development and production of Universal Display Corporation’s (OLED - Free Report) phosphorescent OLED (UniversalPHOLED) materials.

The facility will provide the necessary resources to both PPG and Universal Display to meet the increasing demand for energy-efficient, high-performance OLED displays and lighting devices. This collaboration between PPG and Universal Display is a major expansion project in Ohio and will strengthen Ohio’s position in advanced manufacturing and polymers markets globally.

PPG Industries is the exclusive manufacturer of Universal Display’s UniversalPHOLED emitter materials, which have considerable advantages over conventional OLED technologies. Universal Display is a world leader in the development of innovative OLED technology for use in flat panel displays, lighting and organic electronics.  

Universal Display’s highly-skilled team builds cutting-edge OLED technology, offers technology transfer and assistance to its partners, and develops and fabricates a variety of technology prototypes for the partners’ customized needs.  PPG and Universal Display joined forces in 2000 for the commercialization and production of UniversalPHOLED materials.

PPG Industries released its third-quarter 2013 financial results in Oct 2013. Barring one-time items, the company raked in earnings from continuing operations of $2.44 a share in the quarter, which topped the Zacks Consensus Estimate of $2.34. The adjusted earnings exclude one-time items including restructuring and acquisition charges.

Profit from continued operation (as reported), however, fell around 24% to $220 million or $1.52 per share from $288 million or $1.86 per share a year ago, hurt by hefty restructuring and other charges. On a consolidated basis (including discontinued operation), profit declined 33% year over year to $226 million or $1.56 per share.

Revenues climbed roughly 17% year over year to $3,980 million, beating the Zacks Consensus Estimate of $3,960 million. Healthy results in the coatings business was led by gains across automotive original equipment manufacturer coatings, automotive refinish and aerospace. However, the architectural coatings business was somewhat weak in the quarter.

PPG Industries currently carries a Zacks Rank #3 (Hold).

Other companies in the chemical industry worth considering are Asahi Kasei Corporation (AHKSY - Free Report) and Methanex Corporation (MEOH - Free Report) . Both hold a Zacks Rank #1 (Strong Buy).

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