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PPG's Coatings Innovation Center to Aid Product Development
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PPG Industries, Inc. (PPG - Free Report) recently inaugurated its Packaging Coatings Innovation Center, Europe, in Bodelshausen, Germany. The innovation center will act as a centralized location for product development and customer support in the Europe, Middle East, and Africa regions. Financial details of the investment have not yet been disclosed.
The analytical and research and development (R&D) capabilities at the site will undergo an expansion including predictive testing, which will expedite packaging coatings product development across a broad range of end markets. It will feature a new research laboratory with four global development centers, namely caps and closures, personal care, powder and food development. Added predictive testing and analysis equipment will further expedite product development capability.
The company noted that the investments at Bodelshausen are testimony to its commitment to delivering innovative and premium solutions, thus creating value for customers. The new venture, with resources focused at a single location, will enable PPG to maximize on synergies between the various teams.
Besides the Bodelshausen project, PPG has also announced expansion plans for its packaging coatings capacity at Tiel, the Netherlands, Cieszyn, Poland and Delaware, OH, which reflect the surging consumer preference for PPG’s packaging coatings.
PPG’s shares have grown 14.9% over the past year compared to the industry’s 29.9% rise. The company’s estimated earnings growth rate for the current year is pegged at 18%.
Image Source: Zacks Investment Research
PPG, in its third-quarter call, said that it expects ongoing supply chain disruptions to continue throughout the fourth quarter, with potential additional impacts from the recent industrial production curtailments in China. It forecasts these disruptions to ease modestly in overall quantity and magnitude as the quarter progresses.
It will continue to prioritize further selling price increases and expects price realization to fully offset raw material cost inflation in early 2022.
Moreover, the recovery in the automotive original equipment manufacturer, aerospace, and automotive refinish coatings businesses will be a key catalyst in 2022. It will continue to aggressively manage all aspects of its cost structure, the company noted.
PPG also expects net sales volumes to be down 8-10% year over year in the fourth quarter. Corporate expenses are projected to be $50-55 million in the quarter. Net interest expenses are expected between $25 million and $27 million. The company also sees adjusted earnings for the full year to be $6.67-$6.73 per share.
Dow has an expected earnings growth rate of 447% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 8.7% upward over the last 60 days.
Dow beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 14.12%, on average. Its shares have also gained around 12.6% over a year.
Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for the current year has been revised around 9% upward over the last 60 days.
Univar beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 24.1%, on average. Its shares have also rallied around 64.4% over a year.
Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for the current year has been revised 9.1% upward over the last 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 12.7%, on average. Its shares have also rallied around 31.8% over a year.
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PPG's Coatings Innovation Center to Aid Product Development
PPG Industries, Inc. (PPG - Free Report) recently inaugurated its Packaging Coatings Innovation Center, Europe, in Bodelshausen, Germany. The innovation center will act as a centralized location for product development and customer support in the Europe, Middle East, and Africa regions. Financial details of the investment have not yet been disclosed.
The analytical and research and development (R&D) capabilities at the site will undergo an expansion including predictive testing, which will expedite packaging coatings product development across a broad range of end markets. It will feature a new research laboratory with four global development centers, namely caps and closures, personal care, powder and food development. Added predictive testing and analysis equipment will further expedite product development capability.
The company noted that the investments at Bodelshausen are testimony to its commitment to delivering innovative and premium solutions, thus creating value for customers. The new venture, with resources focused at a single location, will enable PPG to maximize on synergies between the various teams.
Besides the Bodelshausen project, PPG has also announced expansion plans for its packaging coatings capacity at Tiel, the Netherlands, Cieszyn, Poland and Delaware, OH, which reflect the surging consumer preference for PPG’s packaging coatings.
PPG’s shares have grown 14.9% over the past year compared to the industry’s 29.9% rise. The company’s estimated earnings growth rate for the current year is pegged at 18%.
PPG, in its third-quarter call, said that it expects ongoing supply chain disruptions to continue throughout the fourth quarter, with potential additional impacts from the recent industrial production curtailments in China. It forecasts these disruptions to ease modestly in overall quantity and magnitude as the quarter progresses.
It will continue to prioritize further selling price increases and expects price realization to fully offset raw material cost inflation in early 2022.
Moreover, the recovery in the automotive original equipment manufacturer, aerospace, and automotive refinish coatings businesses will be a key catalyst in 2022. It will continue to aggressively manage all aspects of its cost structure, the company noted.
PPG also expects net sales volumes to be down 8-10% year over year in the fourth quarter. Corporate expenses are projected to be $50-55 million in the quarter. Net interest expenses are expected between $25 million and $27 million. The company also sees adjusted earnings for the full year to be $6.67-$6.73 per share.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Univar Solutions Inc. , each flaunting a Zacks Rank #1 (Strong Buy), and Celanese Corporation (CE - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of 447% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 8.7% upward over the last 60 days.
Dow beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 14.12%, on average. Its shares have also gained around 12.6% over a year.
Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for the current year has been revised around 9% upward over the last 60 days.
Univar beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 24.1%, on average. Its shares have also rallied around 64.4% over a year.
Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for the current year has been revised 9.1% upward over the last 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 12.7%, on average. Its shares have also rallied around 31.8% over a year.