PPG Industries Expands ECK Products Offering

Zacks

The commercial coatings group of PPG Industries’ (PPG) automotive refinish business has entered into an agreement with Van Nay, LLC to expand its Electrolysis Corrosion Kontrol (:ECK) corrosion-prevention product line that has been distributed by PPG. The company will now be offering a full line of ECK products, including both quart and aerosol versions to the existing squeeze tubes that it offered earlier.

ECK products are built with a patented compound that helps to avoid expensive repairs caused by dissimilar metal corrosion in an economical way. Aluminum products assembled with stainless-steel fasteners are naturally prone to corrosion. ECK coatings which are rich in zinc prevent the electrolytic reaction, thus providing a long-lasting, moisture-resistant barrier.

ECK coatings are better than the traditional corrosion prevention methods that use silicone-based products and plastic insulating tape applications. ECK coatings can be applied on heavy-duty truck bodies, military vehicles, trailers, agricultural and construction equipment and have a variety of other metallic usage. Bolts and fasteners can be prevented from galling and seizing with the usage of ECK coatings.

PPG Industries released its fourth-quarter 2013 results on Jan 16. The company reported adjusted earnings from continuing operations (excluding acquisition-related expenses of $4 million or 3 cents per share) of $1.81 a share for the quarter, up 45% year over year from $1.25 per share reported in the year-ago quarter. The results exceeded the Zacks Consensus Estimate of $1.73 per share.

Profit from continued operations (as reported) was $254 million or $1.78 per share in the fourth quarter, surging roughly 33% from $191 million or $1.23 per share posted in the prior-year quarter. Healthy results in the fourth quarter were also backed by continuing operating and cost discipline coupled with a higher level of organic sales growth.
 
Revenues rose 14% year over year to $3,702 million in the quarter from $3,243 million in the year-ago quarter and were also ahead of the Zacks Consensus Estimate of $3,698 million. The year-over-year rise is attributable to higher industry demand in aerospace and automotive OEM coatings. The results were also aided by stabilizing regional demand in Europe.

PPG Industries is a Zacks Rank #2 (Buy) stock.

Other companies in the chemical industry worth considering include Methanex Corp. (MEOH), Northern Technologies International Corp. (NTIC) and The Dow Chemical Co. (DOW). While both Methanex and Northern Technologies carry a Zacks Rank #1 (Strong Buy), Dow Chemical holds a Zacks Rank #2 (Buy).

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Read the Full Research Report on MEOH


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