PPG Industries Inc. ( PPG Quick Quote PPG - Free Report) recently said that the expansion of its powder coatings facility in Sumare, Brazil, had been completed. The facility's production capacity was boosted by 40% as a result of the $2.7 million project. This month, the unit is expected to achieve its maximum capacity. The facility now features new, cutting-edge, highly automated equipment that improves process control and quality while requiring less setup time for color matching and production. At the location, additional automation investments are planned, including the combination of connecting tools and process synchronization technologies. This investment seeks to address the rising demand for powder coatings from regional producers of electrical equipment, agricultural machinery, transportation and other industries for items like steel furniture, storage structures, gym equipment and electrical panels and transformers. The development is part of PPG's most recent international investment to modernize five powder coatings manufacturing sites in the United States and Latin America, which was first announced earlier this year to address rising customer demand for products with superior sustainability. Shares of PPG have gained 12.2% over the past year compared with a 13.4% rise of its industry. Image Source: Zacks Investment Research
The company expects third-quarter adjusted EPS in the range of $1.85-$1.95. For the full year, the company raised its adjusted EPS projection to the range of $7.28-$7.48. These projections consider various factors such as current global economic activity, soft global industrial production, continued economic uncertainty associated with geopolitical issues in Europe and higher interest rates in most developed countries.
The company expects performance coatings demand in Europe to stabilize at lower levels than the pre-conflict period in Ukraine while raw material and transportation normalize closer to pre-pandemic levels. For Industrial coatings, PPG anticipates a low single-digit percentage decline in organic sales due to lower global industrial production, except for modest growth in China. Other industrial end-use markets are expected to be soft. However, selling price increases are likely to continue. Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation ( CRS Quick Quote CRS - Free Report) , The Andersons Inc. ( ANDE Quick Quote ANDE - Free Report) and Hawkins Inc. ( HWKN Quick Quote HWKN - Free Report) . Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 77.4% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see . the complete list of today’s Zacks #1 Rank stocks here Andersons currently carries a Zacks Rank #1. The stock has gained roughly 51.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 49.9% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.