U.S. Markets open in 8 hrs 47 mins

PPG Industries (PPG) Invests $1.4M in R&D Facility in France

Zacks Equity Research

PPG Industries PPG completed a $1.4-million investment at its automotive adhesives and sealants manufacturing and research and development (R&D) center in Saint-Just-en-Chaussee, France.


The facility has been upgraded with new structural adhesives and waterborne liquid applied sound damper (LASD) manufacturing cells, improved laboratory and testing space, upgraded equipment to simulate automotive body shop conditions, and improved technical capabilities. 


Updated equipment at the facility cuts the number of steps between laboratory formulations and manufacturing batches prior to trials at customer facilities. Also, it improves the link between the company’s R&D efforts and customer requirements with integrated services and enhanced resources.

PPG Industries’ shares have moved up 8.5% in the past six months, underperforming the industry’s 15.3% growth.





PPG Industries expects continued moderate global economic growth. Post the mayhem caused by the recent natural disasters, the company doesn’t anticipate any further decline in the level of raw material cost inflation for the balance of this year.


The company also sees an additional selling price increase. Along with addressing the inflationary environment, it remains on track with its restructuring program which is expected to deliver full-year savings of more than $45 million.


PPG Industries expects the recent natural disasters to unfavorably impact fourth-quarter earnings by up to 5 cents per share.


PPG Industries is taking steps for growing organically as well as cutting costs. The company also remains committed to deploy cash on acquisitions and share repurchases.


However, 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 currently carries a Zacks Rank #3 (Hold).

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 gained 127.4% year to date.

Koppers has expected long-term earnings growth of 18%. Its shares have rallied 24.4% year to date.

Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 73.6% year to date.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
Westlake Chemical Corporation (WLK) : Free Stock Analysis Report
To read this article on Zacks.com click here.