PPG Introduces Envirocron Extreme Protection Powder Coating

PPG Industries, Inc. (NYSE:PPG) recently announced the introduction of PPG Envirocron Extreme Protection powder coating system. The system will provide superior chip and corrosion resistance, which help extend the life of high-tensile automotive coil springs on original equipment manufacturer (OEM) vehicles. In January 2019, the company will unveil the dual-coat system at the North American International Auto Show (NAIAS) in Detroit.

Per PPG, Envirocron Extreme Protection powder coating system uses reclaimable materials and exceeds 150 cycles of testing as prescribed by SAE International’s J2334 Laboratory Cyclical Corrosion Test. Notably, the coating system is specially formulated without fiberglass and is comparatively easier to recycle and reclaim with similar competitive product. The coating offers some additional benefits like consistent film builds on spring surfaces, exceptional application transfer efficiency and a wide application window for ease of use.

PPG Industries noted that the protection coating is a major advancement in corrosion- and chip-resistant coating technologies and serves as the first line of defense in stopping corrosion of springs.

PPG Industries has outperformed the industry in the past year. The company’s shares have lost around 6.7% compared with roughly 17.2% 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 the modest decline in 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 Methanex Corporation (NASDAQ:MEOH) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 31.6% in the past year.

Mosaic has an expected long-term earnings growth rate of 7%. The stock has rallied 59.2% in the past year.

Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained 21.2% in the past year.

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