PPG Industries, Inc. (PPG - Free Report) has received a Supplemental Type Certificate (STC) from the European Aviation Safety Agency (EASA) for its aftermarket glass-faced acrylic windshields for Beechjet 400 business jets and their variants.
The certificate allows PPG Industries to sell the windshields as an approved design to owners of Beechjet 400 jets and variants. In North America and Europe, Beechjet 400 jet owners can purchase replacement parts directly from the manufacturer which will save time and costs.
Notably, the windshields are designed for ease of installation, higher optical properties and resistance to moisture. The windshields have an outboard ply of chemically strengthened glass with two stretched-acrylic plies, which combine the abrasion resistance of glass along with the lightweight benefits of acrylic. PPG windshields also feature a PPG Aircon anti-ice heating system, which offers enhanced optics during operation.
Moreover, for better pilot visibility during wet conditions, PPG Surface Seal hydrophobic coating helps shed water without the need for wipers. The company’s windshields also incorporate a weather seal that is used with pre-molded pressure seals on the edge attachment.
In a year’s time, PPG Industries has underperformed the industry it belongs to. The stock has declined around 15.1% against the industry’s fall of 13.9%.
PPG Industries recently provided updates for third-quarter 2018 financial results. The company expects earnings per share (EPS) from continuing operations in the range of $1.47-$1.51 and adjusted EPS in the range of $1.41-$1.45 for the third quarter. Notably, the projected adjusted EPS reflects a decline from $1.90 in the second quarter of 2018 and $1.52 in the third quarter of 2017.
The company stated that the increased inflationary impacts witnessed during the quarter have led to the highest level of cost inflation since the cycle that started two years ago. Overall demand in China also softened during the third quarter. Moreover, the company noted that the impact from weak foreign currencies, primarily from emerging regions, led to a year-over-year decline of $15 million in income. Lower demand along with currency effects impacted the company’s year-over-year earnings. PPG Industries expects the trend to persist for the rest of 2018.
PPG Industries, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
PPG Industries is a Zacks Rank #5 (Strong Sell) stock.
A few better-ranked companies in the basic materials space are Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. (KMG - Free Report) .
Methanex has an expected long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 48% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1. Its shares have rallied 39% in a year’s time.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). The company’s shares have risen 33% in the past year.
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