Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PPG Industries To Sell Interest In PFG Fiber Glass JVs

Published 09/23/2016, 02:00 AM
Updated 07/09/2023, 06:31 AM

PPG Industries Inc. (NYSE:PPG) said that it has inked a deal to sell its 50% ownership interests in its two PFG Fiber Glass joint ventures (PFG) to Nan Ya Plastics Corp. PPG Industries did not disclose the terms of the transaction and the deal is expected to close by the end of 2016.

Nan Ya Plastics Corp. is affiliated with Taiwan-based Formosa Plastics Group and it currently controls the other 50% ownership interest in the joint ventures.

PFG was formed as an equally-held JV between PPG and Nan Ya back in 1987, with a single production facility in Chia Yi, Taiwan. To meet the increasing demand, a second JV was formed to add a production facility in Kunshan, China in 2001.

PPG Industries’ adjusted earnings of $1.85 per share for the second quarter of 2016 improved 10.8% year over year. Sales in the quarter were fairly consistent with the prior-year quarter figure of $4,064 million. While earnings beat the Zacks Consensus Estimate, sales missed the same. The bottom line was primarily driven by the successful commercialization of innovative products, strong business and cost management as well as earnings-accretive cash deployment.

While PPG Industries is taking steps to cut costs and grow organically, it faces significant currency headwind. Moreover, the company faces macroeconomic challenges and some of its end-markets including heavy-duty equipment and marine still remain sluggish.

PPG Industries currently carries a Zacks Rank #4 (Sell).

Stock to Consider

Some better-ranked stocks in the chemical space include Innophos Holdings Inc. (NASDAQ:IPHS) , Innospec Inc. (NASDAQ:IOSP) , and E. I. du Pont de Nemours and Company (NYSE:DD) .

Innophos Holdings sports a Zacks Rank #1 (Strong Buy). The company has expected earnings growth of 48.6% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Innospec also carrying a Zacks Rank #1, has posted positive earnings surprises in the trailing four quarters.

DuPont, a Zacks Rank #2 (Buy) stock, has also posted positive earnings surprises in the last four quarters.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>



PPG INDS INC (PPG): Free Stock Analysis Report

DU PONT (EI) DE (DD): Free Stock Analysis Report

INNOPHOS HLDGS (IPHS): Free Stock Analysis Report

INNOSPEC INC (IOSP): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.