PPG Unveils Sustainability CO2NCEPT System, Helps Body Shops
PPG Industries Inc. PPG has introduced the PPG Sustainability CO2NCEPT system, a collection of products, processes, digital tools and consulting services designed to assist body shops in reducing energy, waste and greenhouse gas emissions throughout the vehicle repair process. The company recognizes an opportunity to better partner with clients and meet the demand for sustainable solutions that increase energy efficiency and reduce carbon emissions by launching the PPG Sustainability CO2NCEPT system.
The PPG Sustainability CO2NCEPT offering includes consulting and training services, which can assist body shops in identifying the activities that consume the most energy and generate the most significant amount of carbon emissions. It also comprises air-drying primers and clearcoats, which can reduce energy consumption by up to 65% compared to traditional oven-cured coatings, and roller-applied and air-dried primers, which offer energy savings of up to 95% by replacing a spray gun within a sanding process, roller-applied primers.
Additionally, PPG provides cutting-edge digital solutions to support customer sustainability. These include the PPG LINQ end-to-end digital ecosystem, which can increase productivity in body shops by 15% compared to conventional repair techniques, and the PPG MOONWALK automated paint mixing system, which can lower basecoat emissions' carbon footprint by up to 9%.
PPG VISUALIZID software, when coupled with PPG's camera-equipped spectrophotometers (PPG RAPIDMATCH XI and PPG DIGIMATCH tools), assists users in selecting the best color variant from PPG's extensive color library, resulting in less product waste and improved measurement accuracy. Further reducing waste, this computerized approach eliminates the requirement for painters to evaluate color matches on spray-out panels.
Shares of PPG have gained 16.8% over the past year compared with a 19% rise of its industry.
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The company expects adjusted EPS for the third quarter to be in the range of $1.85-$1.95. For the full year, the company raised its adjusted EPS projection to $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.
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 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 92.4% 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. The stock has gained roughly 57.1% 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 53.1% 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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