PPG Industries (PPG) Launches PITT-CHAR NX Protection Coating

PPG Industries, Inc. (NYSE:PPG) has launched PPG PITT-CHAR NX, its most advanced passive fire protection coating. The epoxy intumescent coating offers reduced thickness in coating, lower weight and faster application as well as outstanding strength and durability.

Notably, intumescent coating is geared to provide protection against severe hydrocarbon hazards like jet fires, pool fires and explosions as well as eliminate cracking and delamination risk during fabrication, transportation and construction. The coating is suited for onshore and offshore environments in the oil, gas and petrochemical industries.

Per PPG, PITT-CHAR NX is a significant advancement in fire protection technology, with higher safety performance in a thinner, lighter coating and is faster to apply. The coating also delivers considerable material savings and reduces construction and transport costs. The coating product has been proven to be suitable for marine, offshore and industrial exposure without any degradation in fire resistance.

PPG Industries has outperformed the industry over the past year. The company’s shares have lost around 7.6% compared with roughly 18.6% decline of the industry.

In its third-quarter earnings call, PPG Industries stated that it sees normal business seasonality in the fourth quarter. It also expects overall global economic growth to remain positive. The company witnessed higher industrial production volatility and inconsistency in emerging region growth rates during the third quarter and expects this to continue in the fourth quarter. The company projects fourth-quarter earnings per share in the range of $1.03-$1.13.

PPG Industries’ Performance Coatings segment sales rose more than 2% at constant currency in the third quarter as higher selling prices more than offset modestly lower sales volumes. The company’s Industrial Coatings segment saw a year-over-year uptick in sales. However, net income at both the segments declined year over year due to raw material and logistics cost inflation.

PPG Industries, Inc. Price and Consensus

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (NYSE:CF) , The Mosaic Company (NYSE:MOS) and KMG Chemicals, Inc. (NYSE:KMG) .

CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 24.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #1. The stock has rallied 58.9% in the past year.

KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). Its shares have risen 47.3% in a year’s time.

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