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PPG Industries (PPG) Establishes Traffic Solutions Business

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PPG Industries, Inc. (PPG - Free Report) announced the launch of a new business unit Traffic Solutions, post the acquisition of Ennis-Flint that was completed in December 2020.

The unit is established for the production and supply of a broad, global portfolio of pavement-marking products, including paint, thermoplastics and other advanced technologies. It intends to serve consumers in government, military, contracting, commercial infrastructure, engineering and architecture.

As part of the Performance Coatings reportable segment, the business unit will join PPG Industries’ Architectural Coatings, Aerospace, Automotive Refinish, and Protective and Marine Coatings strategic business units.

The traffic solutions unit will also associate with the company’s mobility team to discover possibilities in the supply of unique coatings for infrastructure needs, which facilitate autonomous driving.

The new launch complements PPG Industries’ portfolio and the company is excited about the new growth opportunities in traffic solutions segment. With the enhancement of existing mobility technologies, this unit will boost the company’s capability to support infrastructure for safer driver-assisted and autonomous driving systems.

Shares of PPG Industries have gained 16.3% in the past year compared with 24.8% rise of the industry.

PPG Industries is committed to grow business through strategic acquisitions. The acquisition of Ennis-Flint helps PPG Industries expand its product portfolio and broaden opportunities in rapidly developing and high-growth mobility technology solutions.

The company also agreed to purchase Tikkurila, which will expand its portfolio and provide customers with a wider range of paint and coatings options. PPG Industries is buying coatings manufacturer, Versaflex, which is anticipated to support its commitment toward broadening its technology portfolio and customer touch points.

Recently, PPG Industries announced the acquisition of global coatings manufacturer, Worwag. The Worwag buyout will expand PPG Industries’ portfolio and broaden current customer distribution in key geographies.

PPG Industries is also actively managing costs amid the corona virus pandemic. The company expects to generate restructuring savings of $30-$35 million for the last quarter of 2020.

 

Zacks Rank & Other Key Picks

PPG Industries currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 73.5% for the current fiscal. The company’s shares have surged around 157.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP has an expected earnings growth rate of 49.16% for the current fiscal. The company’s shares have gained around 29% in the past year. It currently flaunts a Zacks Rank #1.

Impala has an expected earnings growth rate of 131.7% for the current fiscal. The company’s shares have surged around 40.6% in the past year. It currently sports a Zacks Rank #1.

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