PPG Declares Completion of $3 Million Expansion at Wisconsin
PPG Industries PPG has declared the completion of a $3 million expansion for packaging coatings manufacturing at Oak Creek, WI facility. The 3,300-square-foot plant will boost the production of food-can coatings and meet growing demand of customers.
In order to help canmakers and brand-owners meet increasing food-contact regulatory requirements, PPG has designed a new generation of food-can coatings. With changing market demand and regulations, the Oak Creek facility will now have greater flexibility for production of specialized solutions to meet new requirements.
PPG Industries outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares rallied around 9.9% over this period, compared with roughly 7.3% gain recorded by the industry.
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
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemical space include Univar Inc. UNVR, The Chemours Company CC and Kronos Worldwide Inc KRO, all sporting 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%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Chemours Company (The) (CC): Free Stock Analysis Report
Univar Inc. (UNVR): Free Stock Analysis Report
To read this article on Zacks.com click here.
