PPG Industries, Inc. ( PPG Quick Quote PPG - Free Report) recently unveiled PPG Sigma Sailadvance NX coating, the latest addition to the successful PPG Sigma Sailadvance product range. This marks a significant breakthrough in antifouling technology. The coating product is a result of a decade-long success in intensive product development by the company’s resin synthesis experts. It has been specifically developed to ensure maximum hull protection and vessel performance required by the International Maritime Organization energy-efficiency measures. The product boasts reduced fuel and related carbon dioxide emissions, which consequently lower total operational costs and add to global carbon-reduction measures. It also addresses the shipping industry’s antifouling technology challenges by delivering real linear polishing, a protection against a broad spectrum of global fouling conditions. Moreover, its binder formulation makes way for real linear polishing that is immune to changing seawater temperatures and tests have validated this feature. It also consists of an ultra-strong biocide package that works against a wide range of global fouling growth conditions, including bacterial slime and soft fouling to aggressive animal fouling. PPG noted that the focal point behind the development of the coating product was to overcome the major challenges posed by antifouling technologies. The product features will ensure unrivaled performance and minimization of carbon dioxide emissions, thereby making it a viable solution to meet the growing industry needs. The Sigma Sailadvance NX coating exceeds the performance standards delivered by products that are based on other acrylate technologies. Shares of PPG have jumped 19.3% over a year compared with the industry’s 21.4% rise. Image Source: Zacks Investment Research
PPG recently noted that it now expects sales volumes for the third quarter of 2021 to be $225-$275 million lower than its initial estimated figures. Increasing disruptions in commodity supplies, continued reductions in customer production mainly due to shortages in semiconductor chips, and logistics and transportation challenges in many regions including the United States, Europe, and China have dealt a blow to the company’s sales volumes. The company also stated that aggregate global economic demand has remained healthy and many of its end-use channels have low inventories. With the normalization of supply conditions, strong sales growth is expected in 2022.
The company is making measurable progress by implementing selling price increases to offset the elevated raw material costs. Overall price increases for the third quarter are estimated to be about 5% with similar contributions from both operating segments. Zacks Ranks & Stocks to Consider
Currently, PPG has a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Avient Corporation ( AVNT Quick Quote AVNT - Free Report) and The Chemours Company ( CC Quick Quote CC - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) and Cabot Corporation ( CBT Quick Quote CBT - Free Report) , with a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Avient has a projected earnings growth rate of 75.1% for the current year. The company’s shares have surged 76.3% in a year. Chemours has a projected earnings growth rate of roughly 86.4% for the current year. The company’s shares have grown 58.2% in a year. Cabot has a projected earnings growth rate of 138.5% for the current year. The company’s shares have rallied 35.2% in a year.