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PPG Industries to Hike Price of Automotive OEM Coatings
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PPG Industries, Inc. (PPG - Free Report) will raise prices for select coatings products for Automotive OEM customers in the Americas. The price hike will be effective immediately or as contracts permit.
The company is taking the pricing actions to mitigate rising raw material and operating costs. It is currently witnessing excess demand for raw materials outpacing the supply capacity of industries providing materials for paints and coatings. Additionally, the company has seen increased freight and logistics costs for the past six months due to oil prices increasing nearly 40% over the past nine months.
Shares of the company have moved up around 11% over a year, underperforming the roughly 17.6% growth recorded by its industry.
To improve cost structure, PPG Industries is pursuing significant restructuring actions that are mainly focused on regions and end-use markets with the weakest business conditions. The restructuring activities are projected to deliver around $125 million in annual savings with roughly $50 million of savings already realized in 2017 and another $45-$50 million expected in 2018.
During the fourth-quarter call, PPG Industries stated that it is committed toward deploying at least $2.4 billion of cash in 2018 on acquisitions and share repurchases as part of its earlier communicated goal of deploying $3.5 billion in 2017 and 2018 combined.
PPG Industries is also implementing appropriate pricing strategies to offset the impact of raw materials cost inflation. The company anticipates raw material inflation to continue through first-half 2018.
LyondellBasell has an expected long-term earnings growth rate of 9%. The company’s shares have moved up 21.4% in a year.
Chemours has an expected long-term earnings growth rate of 15.5%. The company’s shares have moved up 42.1% in a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained 54.8% over a year.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
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PPG Industries to Hike Price of Automotive OEM Coatings
PPG Industries, Inc. (PPG - Free Report) will raise prices for select coatings products for Automotive OEM customers in the Americas. The price hike will be effective immediately or as contracts permit.
The company is taking the pricing actions to mitigate rising raw material and operating costs. It is currently witnessing excess demand for raw materials outpacing the supply capacity of industries providing materials for paints and coatings. Additionally, the company has seen increased freight and logistics costs for the past six months due to oil prices increasing nearly 40% over the past nine months.
Shares of the company have moved up around 11% over a year, underperforming the roughly 17.6% growth recorded by its industry.
To improve cost structure, PPG Industries is pursuing significant restructuring actions that are mainly focused on regions and end-use markets with the weakest business conditions. The restructuring activities are projected to deliver around $125 million in annual savings with roughly $50 million of savings already realized in 2017 and another $45-$50 million expected in 2018.
During the fourth-quarter call, PPG Industries stated that it is committed toward deploying at least $2.4 billion of cash in 2018 on acquisitions and share repurchases as part of its earlier communicated goal of deploying $3.5 billion in 2017 and 2018 combined.
PPG Industries is also implementing appropriate pricing strategies to offset the impact of raw materials cost inflation. The company anticipates raw material inflation to continue through first-half 2018.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Stocks to Consider
PPG Industries carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are LyondellBasell Industries N.V. (LYB - 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.
LyondellBasell has an expected long-term earnings growth rate of 9%. The company’s shares have moved up 21.4% in a year.
Chemours has an expected long-term earnings growth rate of 15.5%. The company’s shares have moved up 42.1% in a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained 54.8% over a year.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>