PPG Industries to Hike Global Prices of Industrial Coatings
PPG Industries, Inc. PPG will
implement a global price hike of 10% on all industrial coatings
products. The hike, which will apply to all industrial coatings
end-use segments, will be effective Jan 1, 2019 or as contracts
permit.
PPG Industries is experiencing unprecedented cost pressure related
to raw material, labor, freight and energy. The company is taking
the price increase action amid the inflationary environment.
The company also takes cost-control measures across supply chain in
order to boost efficiency.
PPG Industries has outperformed the industry in the past year. The
company’s shares have lost around 8.1% compared with the 19.9%
decline of the industry.
In its third-quarter earnings call, PPG Industries stated that it
expects 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 in the third quarter
and expects this to persist in the fourth quarter. The company
projects fourth-quarter earnings per share 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.
Meanwhile, its 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
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Stocks to
Consider
PPG Industries currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space include The
Mosaic Company MOS, Gerdau S.A. GGB and Air Products and Chemicals,
Inc. APD.
Mosaic has an expected long-term earnings growth rate of 7% and a
Zacks Rank #1 (Strong Buy). The company’s shares have rallied
50.7% in the past year. You can see the complete list of
today’s Zacks #1 Rank stocks here.
Gerdau has an expected long-term earnings growth rate of 24.3% and
a Zacks Rank #2 (Buy). The company’s shares have climbed 19.8% in
the past year.
Air Products has an expected long-term earnings growth rate of
11.8% and a Zacks Rank #2. The company’s shares have gained 2.2% in
the past year.
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