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PPG Industries Hikes Automotive Refinish Prices in China

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PPG Industries, Inc. (PPG - Free Report) recently implemented a price hike for its automotive refinish products in China. The increase was effective Apr 1, 2019. The move impacts automotive refinish coatings products in the country.

The company is witnessing considerable cost increases in many areas particularly in logistics, freight and raw materials. PPG Industries is trying to offset the rising costs through cost-control measures where possible. However, the cumulative effect is hurting its business.

Per the company, price increases will enable it to continue offering exceptional products and support customer services. It will communicate the details of the price hikes directly to customers.

PPG Industries’ shares have gained 4.3% in the past year, against the 20.7% decline of the industry.



In January 2019, PPG Industries stated that it expects cost inflation, year-over-year unfavorable foreign currency translation along with lower sales volume to affect 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 in the range 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 #4 (Sell).

Some better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd. , Ingevity Corporation (NGVT - Free Report) and Materion Corporation (MTRN - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 105.3% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 56.6% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 11.6% in a year’s time.

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