PPG Research Demonstrates Energy Saving With Agilon Silica
PPG Industries Inc. PPG recently said new research has shown energy savings and other manufacturing benefits for tire manufacturers using PPG Agilon performance silica technology. According to the research, PPG Agilon silica conserves around 50% of energy and reduces manufacturing time by one-third compared to traditional silica by eliminating one mixing step.
PPG Agilon precipitated silica is chemically modified, allowing tire companies to omit a manufacturing phase in which high-density silica interacts with silane. This non-value-added processing step is redundant since PPG formulates PPG Agilon performance silica by precipitating silica and silane together, conserving energy and lowering production complexity.
The study shows that employing PPG Agilon silica can result in lower energy consumption, reduced mixer wear and enhanced plant throughput. PPG strives to improve its manufacturing skills and satisfy the needs of today's tire business while also contributing to its environmental goals.
In addition, the latest research discovered enhanced mixer fill factor (the ratio between the volumes of material put in a mixer and the total mixer volume), larger silica loadings, lower mixer temperature and reduced water use. End users will also get considerable sustainability benefits.
PPG Agilon silica products are designed to extend the tire industry’s ‘magic triangle,' encompassing minimized rolling resistance for more efficient combustion, strengthening traction for enhanced security and handling, and durable construction to extend tire useful life.
Shares of PPG have gained 23.3% over the past year compared with a 12.9% rise of its industry.
Image Source: Zacks Investment Research
The company, on its first-quarter earnings call, noted that it expects adjusted earnings of $6.95-$7.25 per share for 2023. The prediction excludes amortization expense, non-cash pension settlement charge, benefit from insurance recovery and costs related to earlier approved and communicated business restructuring.
Factoring in current global economic activities, geopolitical issues in Europe and higher interest rates in most developed countries, PPG expects sales volumes for second-quarter 2023 to be flat with the potential for slight improvement or decrease of a low single-digit percentage year over year. Adjusted earnings for the second quarter are projected in the band of $2.05-$2.15.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. KOP, Silvercorp Metals Inc. SVM and Linde plc LIN. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Koppers currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for current-year earnings for KOP is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of roughly 13.64%, on average. The stock has gained around 48.8% in a year.
Silvercorp Metals currently carries a Zacks Rank #1. The consensus estimate for current fiscal-year earnings for Silvercorp is currently pegged at 27 cents, suggesting year-over-year growth of 28.6%. The stock has gained roughly 14.2% in the past year.
Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days. Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. The stock has gained roughly 31.9% in the past year.
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
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Silvercorp Metals Inc. (SVM) : Free Stock Analysis Report
