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PPG Industries (PPG) Launches New Topcoat, Expands Portfolio

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PPG Industries (PPG - Free Report) launched PPG Pitthane Ultra LS high-performance polyurethane topcoat, which is developed for applications in corrosive environments that require low sheen to limit glare and conceal surface imperfections.

The new topcoat, which is used in a two or three-coat system, delivers long-lasting protection for applications in bridges, stadiums, as well as fuel and water storage tanks. The topcoat also dispenses minimal reflectivity and good aesthetics.

The topcoat is easy to mix and apply, provides an unlimited recoat window and can be applied at surface temperatures as low as 20 F or minus 7 C. It is available in Canada and the United States.

The PPG Pitthane coatings range is popular for its corrosion resistance and color retention as well as its easy application, excellent flow and leveling characteristics. PPG Pitthane Ultra LS low-sheen topcoat expands these application and performance advantages to facilities located near roadways, where glare could impact drivers and high-impact environments such as stadiums, where a low-gloss finish could make surface imperfections less noticeable, the company noted.

Shares of PPG Industries have rallied 86.2% in the past year compared with 98.9% rise of the industry.

The company, in its last earnings call, 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 along with 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 the 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 #4 (Sell).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged 147.9% 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.

Ashland has an expected earnings growth rate of 83.2% for the current fiscal. The company’s shares have gained 84.9% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 357.9% in the past year. It currently flaunts a Zacks Rank #1.

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