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PPG Industries to Hike Global Prices of Industrial Coatings

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PPG Industries, Inc. (PPG - Free Report) will implement a global price hike of 10% on all industrial coatings products. The hike, which will apply to all industrial coatings end-use segments, will be effective Jan 1, 2019 or as contracts permit.
 
PPG Industries is experiencing unprecedented cost pressure related to raw material, labor, freight and energy. The company is taking the price increase action amid the inflationary environment.

The company also takes cost-control measures across supply chain in order to boost efficiency.

PPG Industries has outperformed the industry in the past year. The company’s shares have lost around 8.1% compared with the 19.9% decline of the industry.



In its third-quarter earnings call, PPG Industries stated that it expects normal business seasonality in the fourth quarter. It also expects overall global economic growth to remain positive. The company witnessed higher industrial production volatility and inconsistency in emerging region growth rates in the third quarter and expects this to persist in the fourth quarter. The company projects fourth-quarter earnings per share of $1.03-$1.13.

PPG Industries’ Performance Coatings segment sales rose more than 2% at constant currency in the third quarter as higher selling prices more than offset the modest decline in sales volumes. Meanwhile, its Industrial Coatings segment saw a year-over-year uptick in sales. However, net income at both the segments declined year over year due to raw material and logistics cost inflation. 

PPG Industries, Inc. Price and Consensus

 

Zacks Rank & Stocks to Consider

PPG Industries currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the basic materials space include The Mosaic Company (MOS - Free Report) , Gerdau S.A. (GGB - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
 
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #1 (Strong Buy).  The company’s shares have rallied 50.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gerdau has an expected long-term earnings growth rate of 24.3% and a Zacks Rank #2 (Buy). The company’s shares have climbed 19.8% in the past year.

Air Products has an expected long-term earnings growth rate of 11.8% and a Zacks Rank #2. The company’s shares have gained 2.2% in the past year.

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