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PPG Industries (PPG) & Universal Display to Expand Production

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PPG Industries, Inc. (PPG - Free Report) recently announced that it is establishing a new manufacturing site jointly with Universal Display Corporation’s unit, UDC Ireland Limited. The new site will be located at Shannon, Ireland for the manufacturing of UDC’s high-performing UniversalPHOLED materials.

The latest facility will be geared to double production capacity and help diversify the manufacturing base for UDC’s phosphorescent emitters to meet growing demand for organic light emitting diode and evolving industry requirements.

PPG Industries is the exclusive producer of UDC’s UniversalPHOLED emitter materials. Both these companies have completed 20 years of partnership.

UDC has leased its Ireland site with right to purchase and the site was being used as a full-service, active pharmaceutical intermediates manufacturing facility until recently. The site will be run by PPG to manufacture PHOLED emitters. The improvements at the facility and regulatory approvals are likely to be completed in a year and it is expected to commence operations in early 2022.

Shares of PPG Industries have rallied 32.1% in the past year compared with 37.9% rise of the industry.

The company, last month, stated that it expects overall global coatings demand to continue to improve in many of its end-use markets and across all of its major regions. The company also expects to gain from volume recovery in its technology-advantaged automotive refinish and aerospace coatings businesses, synergy realization and earnings accretion through integration of recently-announced acquisitions as well as an eventual inventory restocking in specific industrial end markets.

Factoring in current global economic activities and the near-term economic uncertainty associated with the pandemic, PPG Industries expects total sales volume for the first quarter of 2021 to be flat to modestly higher, differing by business and region. The company also expects to achieve total incremental cost benefits from restructuring measures of $30-$35 million in the first quarter.

The company also sees adjusted earnings for the first quarter to be $1.55-$1.61 per share. The mid-point of this range indicates an increase of more than 20% over the comparable year-ago figure of $1.31.


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 95.4% for the current fiscal. The company’s shares have surged around 210% in a year. It currently flaunts 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 69.2% for the current fiscal. The company’s shares have gained around 79.3% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 104.2% in the past year. It currently carries a Zacks Rank #2.

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