PPG Industries Inc. (PPG - Free Report) announced the launch of its quick-ship program for SilverSan antibacterial-protected powder coating.
Notably, the quick-ship program is possible on account of the company’s buyout of Alpha Coating Technologies. Reportedly, the powder coating producer is a fully-owned subsidiary of PPG Industries.
Per PPG Industries’ management, the acquisition of Alpha Coating strengthens its capabilities in the powder market and enables it to be strategic and creative to bring results to customers.
PPG Industries’ SilverSan powder technology gradually releases silver ions, known to prevent bacterial growth on powder-coated surfaces. Notably, the coating displays exceptional exterior durability, and provides excellent color retention and high temperature stability.
Shares of PPG Industries have declined 24.7% in the past year compared with a 27.1% decline of the industry.
Last month, the company reported net income of $243 million or $1.02 per share in first-quarter 2020 compared with $312 million or $1.31 per share in the year-ago quarter. Moreover, its adjusted earnings per share of $1.19 lagged the Zacks Consensus Estimate of $1.20.
Revenues were down 6.8% year over year to $3,377 million in the quarter. Moreover, the top line lagged the Zacks Consensus Estimate of $3,453 million.
The company expects to achieve higher restructuring savings of $80-$90 million for 2020.
PPG Industries expects total sales volume for the second quarter to be down 30-35%. Moreover, it anticipates corporate expenses of $45-$50 million and net interest expenses of $35-$40 million for the same quarter.
Customer demand levels are projected to remain significantly impacted, with declines continuing in the automotive original equipment manufacturer, automotive refinish and aerospace coatings businesses. Further, the company noted that in businesses, including packaging coatings, do-it-yourself architectural coatings, long-cycle protective coatings and military products, demand has been slightly affected by the virus outbreak.
PPG Industries also withdrew all of its earlier communicated sales and earnings guidance for 2020 due to increased level of uncertainties over global economic demand.
PPG Industries Inc Price and Consensus
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the basic materials space are Gold Fields Limited (GFI - Free Report) , Newmont Corporation (NEM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Gold Fields currently sports a Zacks Rank #1 (Strong Buy) and has a projected earnings growth rate of 31% for 2020. The company’s shares have surged 112.7% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont has a projected earnings growth rate of 85.6% for the current year. The company’s shares have rallied around 108% in a year. It currently has a Zacks Rank #2 (Buy).
Barrick has a projected earnings growth rate of 64.7% for 2020. It currently carries a Zacks Rank #2. The company’s shares have rallied 109% in a year.
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