) continues its impressive record of returning cash to
shareholders through higher dividends. The Pittsburgh-based
coatings giant's Board has approved a raise of 2 cents per share
in the company's quarterly dividend to 61 cents per share.
Annualized, this represents a payout of $2.44 per share.
The revised dividend is payable on Jun 12, 2013, to
shareholders of record as of May 10, 2013. This represents PPG
Industries' 42nd straight year of dividend increase.
The dividend increase is a testimony of the company's healthy
balance sheet. PPG Industries' cash and cash equivalents more
than doubled year over year to roughly $2 billion at the end of
the recently reported quarter. Total debt fell 7% year over year
to around $3.4 billion.
PPG Industries, on Apr 18, posted mixed first-quarter 2013
results. Adjusted earnings of $1.58 per share beat the Zacks
Consensus Estimate of $1.56. Profit, as reported, climbed
manifold on strength across automotive OEM and aerospace markets.
A one-time gain on sale of the company's commodity chemicals
business boosted the bottom line.
Revenues were essentially flat year over year at $3,331
million, missing the Zacks Consensus Estimate of $3,424 million.
Strong momentum across North America and Asia was somewhat masked
by sustained weakness in Europe.
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. It is taking
steps to grow its business inorganically by making a number of
PPG Industries sees mixed economic trends in 2013 with
continued strength in North America, improvements in Asia and
sustained weakness in Europe. The company is pursuing
restructuring of its European operation, which is expected to
fetch meaningful cost savings this year.
However, the European market is expected to remain under
pressure and raw material inflation and currency headwinds remain
concerns for the company.
PPG Industries currently holds a short-term Zacks Rank #3
Other companies in the chemical industry that are worth
Eastman Chemical Co.
LyondellBasell Industries NV
). While Olin retains a Zacks Rank #1 (Strong Buy), both Eastman
and LyondellBasell hold a Zacks Rank #2 (Buy).
EASTMAN CHEM CO (EMN): Free Stock Analysis
LYONDELLBASEL-A (LYB): Free Stock Analysis
OLIN CORP (OLN): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis
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