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PPG Industries to Hike Prices of Industrial Coatings Products

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PPG Industries Inc. (PPG - Free Report) recently announced that it will implement a price increase of up to 10% on its industrial coatings products. The price hike will be globally effective Jan 1, 2020 or as contracts permit. It will be applicable to all end-use segments of industrial coatings products.  

Per management, key drivers of price rise include the ongoing increase in certain cost pools and the need to regain substantial inflation from the past few years.

Despite the company being proactive in using cost-control measures across its global supply chain to increase efficiency and reduce costs, it needs to adjust its pricing so that it can provide customers with excellent technical support and innovative solutions.

The company’s sales representatives will convey the price raise details of all concerned products to customers.

Shares of PPG Industries have rallied 24% year to date against the industry’s 23.4% decline.

PPG Industries anticipates soft global economic growth for the fourth quarter. It expects the same to affect several end-use markets.

For 2019, the company estimates adjusted earnings per share (EPS) of $6.17-$6.27. This takes into consideration the year-over-year growth projection of 15% at the mid-point in constant currency for the fourth quarter. Moreover, the adjusted EPS growth guidance lies at the low-to-mid end of the earlier forecast of 7-10%, excluding the impact of currency translation.  

PPG Industries predicts sales growth in a low-single-digit percentage for the year, which excludes the 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 General Moly, Inc , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have soared 50.3% in the past year.

Franco-Nevada has a projected earnings growth rate of 45.3% for 2019. The stock has surged 39.3% in a year.

Agnico Eagle has an estimated earnings growth rate of 167.9% for the current year. Its shares have jumped 60.1% in the past year.

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