PPG Industries, Inc. (PPG - Free Report) declared that it will sell its roughly 40% minority ownership interest in Pittsburgh Glass Works (“PGW”) to LKQ Corp. (LKQ - Free Report) . PPG Industries held a minority stake in PGW since 2008 when it wrapped up the sale of its automotive glass and services business to PGW.
LKQ stated that it anticipates the deal to complete in the second quarter of 2016, subject to customary closing conditions.
Michael McGarry, PPG president and chief executive officer, noted that the sale of the minority stake in PGW ends the era of PPG’s involvement in the automotive glass industry.
PPG Industries reported a 3% decline in its revenue from the Glass segment in fourth-quarter 2015 as improved pricing was more than offset by currency headwinds and the sale of a production unit in 2014. The company saw strong demand for its flat glass. Sales volumes for fiber glass also increased year over year, as lower activity in Europe was more than offset by higher U.S. demand.
PPG Industries anticipates global economic growth to continue at a mixed rate, economy-wise. For 2016, the company anticipates uneven growth in the Asia-Pacific region, but strong growth on a full-year basis, driven by increased consumer spending. The company also expects economic expansion in North America to continue at a modest pace and European economies to improve. As nearly 30% of the company’s sales are generated in the European region, growth there will be favorable for PPG Industries.
PPG Industries remains committed to delivering higher organic growth, including continued commercialization of its innovative, industry-leading coatings technologies.
PPG Industries is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials sector include Asahi Kasei Corporation (AHKSY - Free Report) and Koninklijke DSM N.V. (RDSMY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
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