PPG Industries Inc.
) and Argex Titanium Inc.entered into a long-term supply
agreement involving pigment grade titanium dioxide (TiO2). Per
the agreement, PPG will provide continued research and
development support to develop and optimize TiO2 for paints and
The companies will combine PPG's coatings technology and
expertise with Argex's TiO2 proprietary processing
technology. TiO2 is a raw material widely used in the paint
and coatings industry as pigment for its hiding, durability and
PPG Industries will be Agrex's first customer for TiO2 pigment
suitable for use in its architectural paint production. The TiO2
is intended to be compatible with various end-use applications
for PPG Industries.
The current agreement replaces the previous collaboration
agreement that was entered in Apr 2012 between the two companies
to utilize PPG's existing technology and know-how relating to the
manufacture of TiO2 pigment for paints and coatings
Argex Titanium Inc. has recently transitioned from a mining
exploration company to a near-term producer of commodities:
Titanium Dioxide (TiO2), Iron and Vanadium Pentoxide (V2O5). With
the primary goal of advancing rapidly towards production, Argex
has adopted a simple and low risk strategy for the scale-up of
its proprietary process that allows it to produce high purity
TiO2 directly from its 100% owned deposit.
PPG Industries has a diversified business both in terms of
products offered and geographical presence. It has a leading
position in several paints and coatings end markets.
PPG Industries released its first quarter 2013 results in Apr
2013. The company beat earnings expectations in the quarter
buoyed by continued momentum across automotive OEM and aerospace
markets. It posted earnings from continuing operations (excluding
one-time items) of $1.58 a share in the quarter, which beat the
Zacks Consensus Estimate of $1.56. The adjusted earnings exclude
pension and environmental costs, acquisition expenses and
Consolidated profit, as reported, zoomed to around $2.4
billion or $16.31 per share from $13 million or $0.08 earned in
the prior-year quarter. The bottom line was boosted by a one-time
gain on sale of the commodity chemicals business.
Reported profit from continued operation was $219 million or
$1.48 a share versus a loss of $50 million or $0.32 a year ago.
Revenues were essentially flat year over year at $3,331 million,
missing the Zacks Consensus Estimate of $3,424 million.
PPG Industries, carries a Zacks Rank #2 (Buy). Other companies
in the chemical space that are worth considering include
Cytec Industries Inc.
FMC Corp. (
. All the companies retain a Zacks Rank #2 (Buy).
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