) said that its protective and marine coatings ("PMC") unit has
secured a contract from the U.S. Navy's Military Sealift Command
("MSC"), under which it will continue to offer coatings, solvents
and technical services to the latter's global fleet of 110 ships.
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The MSC fleet, set up in 1949, comprises over 20 classes of ships
which offer transportation, combat logistics support and other
services to the Department of Defense.
While PPG Industries supplied coatings to MSC earlier, this
contract is the first to include the PSX brand of polysiloxane
coatings. The contract also includes AMERCOAT 240 epoxy coatings
for external surfaces and tanks and SIGMAGLIDE biocide-free foul
release coatings. SIGMAGLIDE coatings boost hull smoothness to
increase fuel economy for ships.
The contract renewal represents a significant milestone for PPG
Industries' PMC business. It extends the company's commitment to
cater to the U.S. Navy and other military services.
PPG Industries' earnings for fourth-quarter 2013, reported on Jan
16, topped the Zacks Consensus Estimate. Reported profit jumped
on strength in the company's coatings business and its cost
management initiatives. Revenues rose by double digits on healthy
momentum across aerospace and automotive markets, and beat
expectations. PPG Industries sees favorable market conditions
across these end-markets in 2014.
However, PPG Industries' PMC unit was a weak spot in the fourth
quarter as it saw weaker activity in the marine business. The
company does not envision a significant uptick in marine sales
until the latter part of this year.
PPG Industries has a diversified business, both in terms of
products offered and geographical presence. While the company
continues to face softness in Europe, it should gain from
strength across North American automotive OEM and aerospace
PPG Industries is a Zacks Rank #2 (Buy) stock.
Other companies in the chemical industry worth considering
L'Air Liquide SA
Northern Technologies International Corp.
LyondellBasell Industries NV
). While both L'Air Liquide and Northern Technologies carry a
Zacks Rank #1 (Strong Buy), LyondellBasell holds a Zacks Rank #2