PPG Industries Inc.
) has increased its quarterly dividend by 10% to 67 cents per
share from the prior payout of 61 cents a share. The raised
dividend will be paid on Jun 12, 2014, to stockholders of record
as of May 12, 2014.
The dividend increase is a testimony of the company's continuing
strong growth and cash-generation prospects. This action also
plays an important part in maintaining the company's balanced
Separately, the Board of PPG Industries has authorized the
repurchase of shares worth $2 billion. The authorization is
effective immediately and does not expire, which gives management
the choice to determine the conditions under which shares may be
bought back. Share repurchases will be made per the applicable
securities laws in the open market or in privately negotiated
The conditions applied on share repurchases are that they may
commence or cease without prior notice depending on economic and
equity market conditions, magnitude of other cash uses, including
pace and timing of acquisitions, and other factors.
Prior to this, in Oct 2011, PPG Industries' Board authorized
the repurchase of 10 million shares of outstanding common stock.
The company repurchased 1.1 million shares (or $200 million)
during the first quarter of 2014 to complete the program.
These moves adopted by PPG Industries testify its commitment
to boost shareholders' value while retaining adequate funds for
its future growth.
Shares of PPG Industries gained as much as 4.4% in the trading
session following these news coupled with the announcement of its
first-quarter 2014 results.
PPG Industries recorded adjusted earnings from continuing
operations (excluding acquisition-related expenses of $2 million
or a penny per share) of $1.98 a share for first-quarter 2014, up
42% from $1.39 per share reported in the year-ago quarter.
The company has delivered record first-quarter adjusted
earnings on the back of a strong coatings portfolio, broad global
footprint, aggressive cost discipline, prudent cash deployment
and targeted cost synergies received from acquisitions.
Revenues rose 17% year over year to $3,636 million in the
reported quarter from $3,108 million in the year-ago quarter. The
year-over-year rise is attributable to higher industry demand in
aerospace and automotive original equipment manufacturers (OEM)
coatings. Results were also aided by accelerated global volume
growth across all regions including Europe, where volumes grew
due to economic recovery.
PPG Industries carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical industry include
). While Cabot carries a Zacks Rank #1 (Strong Buy), Methanex and
Huntsman retain a Zacks Rank #2 (Buy).
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PPG INDS INC (PPG): Free Stock Analysis
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