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PPG Invests $300M in New Manufacturing Plant & Facility Upgrades
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PPG Industries, Inc. (PPG - Free Report) recently announced a $300-million investment in advanced manufacturing in North America to support the growing demand for paints and coatings in the automotive industry. This investment, beginning in 2024 and spanning four years, includes the construction of a new manufacturing plant in Loudon County, Tennessee.
The new 250,000-square-foot facility will be PPG’s first new U.S. manufacturing plant in over 15 years. Initially, it will produce paints and coatings for automakers and automotive parts suppliers, with potential future expansion to other industrial sectors such as transportation, heavy-duty equipment, building and construction and consumer products. The plant, expected to be completed in 2026, will employ approximately 130 full-time staff and produce over 11 million gallons of paint and coatings annually. Construction is set to begin in August 2024.
PPG’s investment also includes enhancements and expansions at its existing facilities in Cleveland, OH, and San Juan Del Rio, Mexico. These enhancements will involve new equipment and processes to improve manufacturing efficiencies and processing times and expand capabilities to meet the demand for sustainable solutions like waterborne coatings. This strategic investment underscores PPG’s growth focus while maintaining consistent overall capital investment levels.
PPG underscored its commitment to innovation, quality and service through these investments, which will modernize and digitize its manufacturing capabilities. This demonstrates PPG’s dedication to being the premier single-source coatings supplier for all vehicle surfaces. With the resurgence of U.S. manufacturing, PPG plans to leverage the new Tennessee facility and other site investments to enhance quality and operational efficiency and reduce product complexity. The strategic location of the Tennessee facility will create a more efficient supply chain, close to numerous automotive manufacturing sites, improving the service experience for customers.
PPG Industries’ shares have dropped 1.5% in the past year compared with the industry’s fall of 7% over the same period.
Image Source: Zacks Investment Research
For second-quarter 2024, PPG projects adjusted earnings per share (EPS) of $2.42-$2.52 and expects the full-year adjusted EPS to be in the range of $8.34-$8.59. The effective tax rate for the quarter is anticipated to be between 23.5% and 24.5%, slightly higher than the previous year. PPG forecasts strong organic growth in China and stabilizing demand in Europe throughout 2024. Despite subdued economic conditions in several U.S. end-use markets, the company anticipates overall improvement as the year progresses.
CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 136%% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.34%. The company’s shares have surged 67.8% in the past year.
The Zacks Consensus Estimate for Ecolab's current year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The Zacks Consensus Estimate for ECL’s current-year earnings has been going up in the past 30 days. ECL beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The stock has rallied nearly 39.8% in the past year.
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PPG Invests $300M in New Manufacturing Plant & Facility Upgrades
PPG Industries, Inc. (PPG - Free Report) recently announced a $300-million investment in advanced manufacturing in North America to support the growing demand for paints and coatings in the automotive industry. This investment, beginning in 2024 and spanning four years, includes the construction of a new manufacturing plant in Loudon County, Tennessee.
The new 250,000-square-foot facility will be PPG’s first new U.S. manufacturing plant in over 15 years. Initially, it will produce paints and coatings for automakers and automotive parts suppliers, with potential future expansion to other industrial sectors such as transportation, heavy-duty equipment, building and construction and consumer products. The plant, expected to be completed in 2026, will employ approximately 130 full-time staff and produce over 11 million gallons of paint and coatings annually. Construction is set to begin in August 2024.
PPG’s investment also includes enhancements and expansions at its existing facilities in Cleveland, OH, and San Juan Del Rio, Mexico. These enhancements will involve new equipment and processes to improve manufacturing efficiencies and processing times and expand capabilities to meet the demand for sustainable solutions like waterborne coatings. This strategic investment underscores PPG’s growth focus while maintaining consistent overall capital investment levels.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
PPG underscored its commitment to innovation, quality and service through these investments, which will modernize and digitize its manufacturing capabilities. This demonstrates PPG’s dedication to being the premier single-source coatings supplier for all vehicle surfaces. With the resurgence of U.S. manufacturing, PPG plans to leverage the new Tennessee facility and other site investments to enhance quality and operational efficiency and reduce product complexity. The strategic location of the Tennessee facility will create a more efficient supply chain, close to numerous automotive manufacturing sites, improving the service experience for customers.
PPG Industries’ shares have dropped 1.5% in the past year compared with the industry’s fall of 7% over the same period.
Image Source: Zacks Investment Research
For second-quarter 2024, PPG projects adjusted earnings per share (EPS) of $2.42-$2.52 and expects the full-year adjusted EPS to be in the range of $8.34-$8.59. The effective tax rate for the quarter is anticipated to be between 23.5% and 24.5%, slightly higher than the previous year. PPG forecasts strong organic growth in China and stabilizing demand in Europe throughout 2024. Despite subdued economic conditions in several U.S. end-use markets, the company anticipates overall improvement as the year progresses.
Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), ATI Inc. (ATI - Free Report) and Ecolab Inc. (ECL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 136%% in the past year.
ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.34%. The company’s shares have surged 67.8% in the past year.
The Zacks Consensus Estimate for Ecolab's current year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The Zacks Consensus Estimate for ECL’s current-year earnings has been going up in the past 30 days. ECL beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The stock has rallied nearly 39.8% in the past year.