PPG Announces Exclusive Supplier Agreement With Flo-Optics
PPG Industries, Inc. PPG has announced an exclusive supplier agreement with Flo-Optics, a developer of digital manufacturing technology for the ophthalmic market, for the use of PPG HI-GARD scratch-resistant coatings with Flo's digital printing technology.
The collaboration would enable the first digital lens coating solutions utilizing additive manufacturing, referred to as 3D printing. The approach will allow ophthalmic labs to precisely apply lens coatings for a customizable production procedure for lenses with unique performance characteristics. In addition to making lenses more functional, the technology makes the coating more efficient by reducing material consumption, lowering production energy requirements and providing faster turnaround times than standard application methods.
Flo's digital coatings technology uses multimaterial and multilayering processes to improve customization and automation choices, reduce production complexity, increase scalability and deliver consistent quality. PPG Hi-Gard lens coating solutions give a long-lasting, scratch-resistant coating on plastic lens materials used in ophthalmic lenses. Plastic lenses retain their optical quality, and lenses coated with Hi-Gard lens coating are four to six times more abrasion-resistant than untreated lenses.
Shares of PPG have gained 13.5% over the past year compared with a 16.7% rise of its industry.
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The company expects third-quarter adjusted EPS in the range of $1.85-$1.95. For the full year, the company raised its adjusted EPS projection to the range of $7.28-$7.48. These projections consider various factors such as current global economic activity, soft global industrial production, continued economic uncertainty associated with geopolitical issues in Europe and higher interest rates in most developed countries.
The company expects performance coatings demand in Europe to stabilize at lower levels than the pre-conflict period in Ukraine while raw material and transportation normalize closer to pre-pandemic levels.
For Industrial coatings, PPG anticipates a low single-digit percentage decline in organic sales due to lower global industrial production, except for modest growth in China. Other industrial end-use markets are expected to be soft. However, selling price increases are likely to continue.
Zacks Rank & Other Key Picks
PPG currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Hawkins Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 106.8% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons currently carries a Zacks Rank #1. ANDE has gained roughly 61.4% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 57.5% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.
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