PPG Industries Completes $15.5M Investment At Its R&T Center

PPG Industries Inc. (NYSE:PPG) recently announced the completion of a $15.5-million investment at its aerospace research and technology (R&T) center in Burbank, CA.

The new facility comprises improved laboratory and testing space with climate-control capabilities, an open floor plan with dedicated areas to foster collaboration as well as updated tools to improve the company’s resources for the development of aerospace coatings and sealants.

Currently, the facility accommodates more than 90 staff in various R&T, customer support, manufacturing, associated service and administrative positions.

Per management, improvement in its R&T capabilities is expected to deliver new and creative products as well as services to customers across regional, military, commercial and general aviation. Moreover, PPG Industries’ foothold as a reliable and creative partner to its aerospace customers globally will strengthen owing to upgrades to the 39,524-square-foot Burbank facility.

Shares of PPG Industries have gained 30.2% year to date against the industry’s 17.7% decline.

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

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

PPG Industries anticipates 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 (NYSE:GMO) , Franco-Nevada Corporation (TSX:FNV) and Sandstorm Gold Ltd (NYSE:SAND) , 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 gained 50.3% in the past year.

Franco-Nevada has a projected earnings growth rate of 48.7% for 2019. The company’s shares have rallied 36.9% in a year.

Sandstorm Gold has an estimated earnings growth rate of 166.7% for the current year. Its shares have moved up 52.8% in the past year.

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