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PPG Wraps Up Acquisition of Arsonsisi's Powder Coating Unit
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PPG Industries, Inc. (PPG - Free Report) recently completed its buyout of the powder coatings manufacturing business of Arsonsisi—an industrial coatings company based in Milan, Italy.
The financial terms of the transaction were not disclosed. The acquisition offers PPG a highly automated, small- and large-batch-capable powder production plant in Verbania, Italy. The company will also have metallic bonding facilities in the Europe, the Middle East and Africa (EMEA) region. The Arsonsisi powder business generated sales of nearly$15 million.
In line with its commitment to offering sustainable innovations that exceed customer needs, PPG Industries is investing in powder capabilities globally. The latest acquisition is in sync with the company’s goal to generate 40% of sales from sustainably advantaged products by 2025. The inclusion of this business will boost PPG Industries’ sustainable coatings capability and offer its EMEA customers expanded powder coating options to cater to the surging demand for these sustainable coatings.
Having established a strong foothold as an innovator in powder coatings, PPG Industries has always showcased its leadership through powder advancements, including edge coverage and fluoroethylene vinyl ether (FEVE) fluoropolymer coatings for architectural metals. The Pennsylvania-based paints giant is the only comprehensive solution provider that can supply and service high-performance powder and all other coatings technologies.
Shares of the company have declined 13.1% in the past year compared with a 1.2% rise of the industry.
Image Source: Zacks Investment Research
The company, in its last earnings call, stated that while it expects demand to remain strong, it apprehends supply and pandemic-related disruptions in the fourth quarter to continue in first-quarter 2022, impeding manufacturing and products delivery. It also expects raw material cost inflation and higher logistics and labor costs to persist. PPG Industries is undertaking measures to increase selling prices to offset the incremental inflation.
PPG Industries projects earnings per share (EPS) between 84 cents and $1.02 for first-quarter 2022. Adjusted EPS are expected in the range of $1.02-$1.20, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 4 cents.
The company expects aggregate net sales volumes to be down a mid-single-digit percentage on a year-over-year basis for first-quarter 2022.
PPG Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 33.3% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 116.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 89.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 24.6% over a year.
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PPG Wraps Up Acquisition of Arsonsisi's Powder Coating Unit
PPG Industries, Inc. (PPG - Free Report) recently completed its buyout of the powder coatings manufacturing business of Arsonsisi—an industrial coatings company based in Milan, Italy.
The financial terms of the transaction were not disclosed. The acquisition offers PPG a highly automated, small- and large-batch-capable powder production plant in Verbania, Italy. The company will also have metallic bonding facilities in the Europe, the Middle East and Africa (EMEA) region. The Arsonsisi powder business generated sales of nearly$15 million.
In line with its commitment to offering sustainable innovations that exceed customer needs, PPG Industries is investing in powder capabilities globally. The latest acquisition is in sync with the company’s goal to generate 40% of sales from sustainably advantaged products by 2025. The inclusion of this business will boost PPG Industries’ sustainable coatings capability and offer its EMEA customers expanded powder coating options to cater to the surging demand for these sustainable coatings.
Having established a strong foothold as an innovator in powder coatings, PPG Industries has always showcased its leadership through powder advancements, including edge coverage and fluoroethylene vinyl ether (FEVE) fluoropolymer coatings for architectural metals. The Pennsylvania-based paints giant is the only comprehensive solution provider that can supply and service high-performance powder and all other coatings technologies.
Shares of the company have declined 13.1% in the past year compared with a 1.2% rise of the industry.
Image Source: Zacks Investment Research
The company, in its last earnings call, stated that while it expects demand to remain strong, it apprehends supply and pandemic-related disruptions in the fourth quarter to continue in first-quarter 2022, impeding manufacturing and products delivery. It also expects raw material cost inflation and higher logistics and labor costs to persist. PPG Industries is undertaking measures to increase selling prices to offset the incremental inflation.
PPG Industries projects earnings per share (EPS) between 84 cents and $1.02 for first-quarter 2022. Adjusted EPS are expected in the range of $1.02-$1.20, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 4 cents.
The company expects aggregate net sales volumes to be down a mid-single-digit percentage on a year-over-year basis for first-quarter 2022.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 33.3% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 116.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 89.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 24.6% over a year.