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PPG Industries (PPG) Launches Envirocron LUM Powder Coating

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PPG Industries, Inc. (PPG - Free Report) recently announced the launch of PPG Envirocron LUM coating. It is the industry’s first commercial retroreflective powder coating. The patent-pending coating is designed to improve visibility at night and during low-light conditions.

Till now, retroreflective items such as pavement markings, road signs and safety vests were possible with liquid paints, tapes and fabrics. PPG’s advancement unites the safety-enhancing properties of retroreflection with the benefits of a powder coating.

The newest launch has an excellent chip and abrasion resistance and one-coat corrosion protection. The coating is cost-effective due to its high transfer efficiency and reclaimability. It is expected to play a key role in PPG’s efforts to advance the sustainability of its customers and achieve 40% of sales from sustainably advantaged products by 2025.

PPG stated that it has been at the forefront of retroreflective powder coating technology for several years. The company’s talented R&D team and commitment to innovation made it possible to bring PPG Envirocron LUM coating to life and achieve a significant advancement in powder technology.

Shares of the company have declined 34.9% in the past year compared with a 15% fall of the industry.

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In its last earnings call, the company stated that it sees overall underlying demand for its products to remain strong, including sustained recovery in certain end-use markets. It expects further volume growth in automotive refinish and aerospace coatings businesses in the coming quarters.

PPG Industries projects earnings per share (EPS) between $1.44 and $1.74 for second-quarter 2022. Adjusted EPS is expected in the range of $1.60-$1.90, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 2 cents.

The company expects aggregate net sales volumes to be down a low-to-mid-single-digit percentage on a year-over-year basis in the second quarter.

 

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .

Allegheny has a projected earnings growth rate of 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 7.3% 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.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 9.7% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 40.7% in a year. The company flaunts a Zacks Rank #1.
 


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