PPG Industries Inc. (PPG - Free Report) recently announced an investment worth $10 million for a new 82,000 square-foot facility and class A paint line at the coatings services facility in Greenville, SC.
The expansion, which is slated to be completed in August 2019, is geared to address increasing demand for class A coatings application and value-added services for the large truck and automotive markets. Notably, Class A coatings are used on surfaces that are readily touched or seen by customers, such as door skins and hoods.
The Greenville facility is dedicated to coatings services facility for automotive original equipment manufacturers (OEMs) and tier one suppliers. The plant was expanded to include aftermarket packaging and hem sealing services in 2015. These processes are used in the automotive industry to join outer and inner closure panels.
The facility is leader in the application of class A exterior coatings on galvanized and aluminum substrates for overseas and domestic markets.
Notably, PPG Industries’ adjusted earnings were $1.15 per share in the fourth quarter of 2018, down around 3.4% from $1.19 in the year-ago quarter. Nevertheless, the figure beat the Zacks Consensus Estimate of $1.09.
Moving ahead, PPG Industries expects impact of cost inflation, year-over-year unfavorable foreign currency translation and lower sales volume to impact performance in the first half of 2019. Based on these factors, the company projects first-quarter 2019 earnings per share (EPS) in the range of $1.18-$1.23.
The company envisions sales growth of 3-5% at constant currency for 2019. It also expects adjusted EPS growth of 7-10%. Moreover, the company expects to deliver at least $70 million in cost savings in 2019.
Zacks Rank & Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space include Kirkland Lake Gold Ltd. (KL - Free Report) , The Mosaic Company (MOS - Free Report) and Silver Standard Resources Inc. (SSRM - Free Report) . While Kirkland currently sports a Zacks Rank #1 (Strong Buy), Mosaic and Silver Standard Resources carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland has an expected earnings growth rate of 20.9% for 2019. The company’s shares have surged 123.7% in the past year.
Mosaic has an expected earnings growth rate of 23.5% for 2019. Its shares have gained 12.4% in a year’s time.
Silver Standard Resources has an expected earnings growth rate of 29.2% for 2019. The company’s shares have surged 71.5% in a year’s time.
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