PPG Launches Polyurethane Primer Spectracron AdvantEdge HPP

PPG Industries (NYSE:PPG) has launched a patented polyurethane primer, Spectracron AdvantEdge HPP. The primer can be used in heavy-duty equipment and for general finishing and transportation applications. The new primer provides protection against corrosion, improved performance on sharp laser-cut edges, as well as superior chip resistance when compared to traditional two-component epoxy primers.

Spectracron AdvantEdge HPP primer offers customers with a more sustainable solution for achieving superior corrosion resistance and sharp-edge performance. This new primer incorporates proprietary resin with anticorrosion pigments and is formulated with no heavy metals.

Spectracron AdvantEdge HPP primer is compatible with a wide array of pretreatment products and regimens. Thus, it provides an advantage to customers who use pretreated metals from third-party suppliers because the new primer can help them make metal parts that are more uniform prior to finishing even when the quality and type of pretreatment varies. Also, it delivers excellent corrosion protection over steel and ferrous substrates.

PPG Industries’ shares rallied around 8% over the past three months, outperforming the Zacks categorized Chemicals-Diversified industry’s 3% gain.

The company has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.

PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.

The company also has an impressive record of returning cash to shareholders through dividends and share buybacks. PPG Industries expects to deploy $2.5–$3.5 billion cash in acquisitions and share repurchases for 2017 and 2018 combined.

PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges. It sees uneven growth in emerging economies in 2017.

PPG Industries, Inc. Price and Consensus

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the chemical space include Univar Inc. (NYSE:UNVR) , The Chemours Company (NYSE:CC) and Kronos Worldwide Inc (NYSE:KRO) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Univar has expected long-term growth of 9.4%.

Chemours has expected long-term growth of 15.5%.

Kronos has expected long-term growth of 5%.

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