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PPG Offering AMERCOAT in Mexico

Zacks Equity Research

PPG Industries Inc.’s (PPG) protective and marine coatings (PMC) business announced that it will offer AMERCOAT brand coatings in Mexico. The products that are sold and serviced by PPG in Mexico include AMERLOCK which is a global brand of PPG and offers high-performance coatings that protect industrial onshore and offshore steel structures against corrosion in the world’s most severe geographical conditions. AMERLOCK is available in a wide range of colors and low-volatile organic compound (VOC) formulations.

Another products offered by PPG in Mexico also includes DIMETCOTE inorganic zinc primers which protect the carbon steel against corrosion. They are available in water-based and low-VOC solvent formulations, and also have high abrasion resistance.

Patented PSX 700 polysiloxane topcoat is also offered by PPG in Mexico. The product is used around the world for applications in various protective and marine segments. It is also available in a wide range of colors and is the world’s first weatherable epoxy that embodies the properties of both a high performance epoxy and an acrylic polyurethane in one coat. This multi-purpose coating offers breakthrough weather resistance and corrosion control.

PMC is a world leader in protective and marine coatings. PPG Industries posted its second-quarter 2013 results on Jul 18. The company posted earnings (barring one time items) from continuing operations of $2.45 a share in the quarter, which beat the Zacks Consensus Estimate by $0.11. The adjusted earnings exclude acquisition charges.

Revenues rose 16% year over year to $4,095 million, yet missed the Zacks Consensus Estimate of $4,115 million. Solid results in the coatings business was driven by sales gains across automotive OEM coatings, automotive refinish and aerospace. However, the architectural coatings business was the weakest link in the quarter.

Revenues from the Architectural Coatings (Europe, Middle East and Africa) division fell 5% to $571 million on lower volumes. Sustained economic weakness led to lower demand in the region.

PPG Industries, a prominent player in the paints industry along with Akzo Nobel (AKZOY), Sherwin-Williams (SHW) and Valspar (VAL), envisions sustained earnings momentum in the third quarter driven by similar factors that aided results in the first half, including prudent cost management. Innovation is key to the company’s growth and the launch of the new collection is expected to augment sales of the company’s architectural coatings business.

PPG Industries currently carries a Zacks Rank #3 (Hold).

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