PPG Industries Inc. (PPG - Free Report) announced that its Teslin label stock used in conjunction with five OKI Data printing systems received Section 3 certification of British Maritime Standard 5609 (BS 5609).
The certification suggests that Teslin labels printed with OKI Data systems will remain legible and intact when it is used on chemical drums and other packaging for hazardous materials shipped by sea. The certification is expected to enable customers to meet important label compliance requirements.
The OKI Data’s Pro1050 printing system is the first LED-based technology, which PPG Industries certified for BS 5609. It expects the Teslin label stock to be an important alternative for durable labels as the popularity of LED technology increases due to its cost effectiveness and high quality.
With the certification, the company will collaborate with OKI Data to develop and grow the Japan chemical drum labeling market.
Teslin label stock is compatible with print technologies, ranging from flexographic and offset to digital inkjet, laser and heat transfer. Moreover, it lessens static discharge potential when liners are removed from label stock. Further, its static-dissipative nature reduces static buildup at the time of digital printing.
Teslin is part of the company's Industrial Coatings segment. The segment’s sales were $1.5 billion in the third quarter, down nearly 1% from the prior-year quarter. Increased selling prices of 2% and acquisition-related sales of around $80 million were offset by a decline in sales volume of 6%. Also, unfavorable foreign currency translation lowered sales by nearly 2% on a year-over-year basis.
PPG Industries’ shares have gained 17.7% over a year against a 23.9% decline recorded by its industry.
The company anticipates global economic growth to remain soft in the fourth quarter and impact several end-use markets.
For 2019, it anticipates adjusted earnings per share (EPS) of $6.17-$6.27. The projection includes year-over-year growth in constant currencies of 15% at the mid-point. Moreover, the guidance represents adjusted EPS growth at the low-to-mid end of earlier announced 7-10%, excluding impacts of currency translation.
The company anticipates sales growth in a low-single-digit range for the year, which excludes impacts of currency translation.
PPG Industries, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
PPG Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd. (IMPUY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - 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.
Impala Platinum has an expected earnings growth rate of 255.2% for the current fiscal year. The company’s shares have surged 230.6% in the past year.
Franco-Nevada has a projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 38.9% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 61.4% in the past year.
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