PPG Industries to Hike Price of Precipitated Silica Products
PPG Industries’ PPG is set to increase prices of sodium silicate and all precipitated silica grades, globally. The price hike effective from Jan 1, 2018 or as contracts permit will be applicable to all the end-use segments.
The company will increase prices of the above products by up to 6%. This move is expected to help partly offset the rise in raw material costs and operating costs. Also, it will provide support to continued investment in silica production and research and development. Additionally, the company expects this price increase to allow it to invest in operations to address increasing customer demand.
PPG Industries’ shares have gained 5.1% in the past six months, underperforming the industry’s 16.3% growth.
PPG Industries expects continued moderate global economic growth. Post the mayhem caused by the recent natural disasters, the company does not expect any further decline in the level of raw material cost inflation for the rest of this year.
PPG Industries also expects the recent natural disasters to unfavorably impact fourth-quarter earnings by up to 5 cents per share.
PPG Industries faces macroeconomic challenges. Some of its end-markets including marine still remain sluggish. It is also exposed to raw materials cost pressure. Moreover, lingering impacts of natural disasters may continue to affect sales volume and margins in the fourth quarter.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Stocks to Consider
PPG Industries carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. KRO, Koppers Holding Inc. KOP and Westlake Chemical Corporation WLK, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have skyrocketed 115.1% year to date.
Koppers has expected long-term earnings growth of 18%. Shares of the company have rallied 24.8% year to date.
Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have soared 83.8% year to date.
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