PPG Industries Inc. (PPG - Free Report) announced that it has painted one of three Airbus A350-1000 flight-test aircraft in the Airbus livery with a selectively strippable system. The coating system by PPG Industries shortens repaint cycle time using Desothane HD 9008 basecoat-clearcoat for high-intensity and long-lasting color. Desothane HD 9008 basecoat-clearcoat has a color-saturated basecoat that attains opacity with less paint than direct-gloss topcoats and a high-shine clearcoat for outstanding service life.
PPG Industries’ low-density fuel tank and fuselage sealant enables the three flight-test aircraft in saving weight compared with conventional sealants and will be used on production of A350-1000 airplanes to benefit operators.
For the selectively strippable system, PPG Industries’ chrome-free Desoprime HS 7049 primer was applied over the existing base primer and F565 intermediate coating added over it. The aircraft was then painted with Desothane color basecoat and clearcoat. When repainting is required, only the intermediate coating, basecoat and clearcoat will have to be removed for new applications. This will leave Desoprime primer and the underlying base primer intact, reducing aircraft downtime by about 30% to 40%.
Further, the company’s PR-1782 is another low density aircraft fuel tank and fuselage sealant that provides about 30% weight saving by volume over conventional sealants used for those applications, affording enhanced aircraft fuel economy. It is qualified by Airbus for all of the aircraft manufacturer’s airframes.
The coatings, sealant and associated products for the A350-1000 aircraft are sourced from PPG facilities in Shildon, England; Gonfreville, France; and Mojave, CA; and from the Bezon, France, plant operated by PPG joint-venture Sealants Europe.
PPG Industries’ shares closed roughly 1.5% lower at $95.19 on Nov 18.
PPG Industries swung to a loss on a reported basis in third-quarter 2016, hurt by sizable pension settlement charges. Adjusted earnings were in line with the Zacks Consensus Estimate while sales trailed the same.
PPG Industries anticipates a modest improvement in global demand and projects year-over-year earnings growth in fourth-quarter 2016 to be similar or modestly higher than that of the third quarter. It aims to reduce costs, particularly in the end-use markets that are estimated to be the weakest, in the fourth quarter.
PPG Industries remains exposed to significant currency headwinds. Moreover, the company faces macroeconomic challenges and some of its end-markets including marine still remain sluggish.
PPG Industries currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked companies in the chemical space include Koppers Holdings Inc. (KOP - Free Report) , The Chemours Company (CC - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Koppers Holdings has an expected long-term growth of 10%.
Chemours has an expected long-term growth of around 15.5%.
Kronos Worldwide has an expected long-term growth of around 5%.
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