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PPG Industries (PPG) Increases Production Output to Meet Demand

·3-min read

PPG Industries, Inc. PPG announced that it would boost production output to meet the growing demand for its commercial aerospace aftermarket products. The company expects to increase employment levels at its Huntsville, AL and Sylmar, CA production sites by up to 20% to meet higher demand from new and existing customers.

The company is investing in higher factory automation to improve aerospace coatings and sealants delivery time. Its Shildon, U.K. aerospace plant is commissioning an automatic Semkit filling machine to boost production of these ready-to-use cartridge-based systems that store, mix and ease application of aerospace sealants.

PPG stated that it has benefited from year-over-year improvements in the market. As air travel resumes, it is focused on meeting its customers’ immediate and longer-term needs.

With higher employment at its major U.S. production plants, PPG can boost supply throughout the global network of 16 aerospace application support centers (ASC). By further automating its processes at these ASCs, it can quickly ship products directly to local customers and do its part to help the aviation industry thrive once again, the company noted.

Shares of the company have declined 29.8% in the past year compared with a 12.2% fall of the industry.

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In its last earnings call, the company stated that it sees overall underlying demand for its products to remain strong, including sustained recovery in certain end-use markets. It expects further volume growth in automotive refinish and aerospace coatings businesses in the coming quarters.

PPG Industries projects earnings per share (EPS) between $1.44 and $1.74 for second-quarter 2022. Adjusted EPS is expected in the range of $1.60-$1.90, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 2 cents.

The company expects aggregate net sales volumes to be down a low-to-mid-single-digit percentage on a year-over-year basis in the second quarter.

PPG Industries, Inc. Price and Consensus

 

PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus

PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote

 

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. ATI, Cabot Corporation CBT and Nutrien Ltd. NTR.

Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40.4% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 10.8% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 13.9% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 39.6% in a year. The company flaunts a Zacks Rank #1.


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