PPG Teams Up with Village PRO - Analyst Blog

By Zacks Equity Research,

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PPG Pittsburgh Paints, a unit of leading protective and decorative coatings supplier PPG Industries ( PPG ), has partnered with hardware and building supply store Village PRO Hardware to offer new paint and color options to the residents in Marblehead, Ohio.

Under the collaboration, the Village PRO Hardware store has introduced a range of products from PPG Pittsburgh Paints including the WALLHIDE and SPEEDHIDE interior paints and the SUN PROOF exterior paints. These exciting new products reinforce the store's offerings, helping it to better serve its customers.

Village PRO is also providing its customers a mail-in rebate incentive to begin their spring home renovation projects. Under the offer, the customers can save $4 per gallon on up to 10 gallons of paint till the end of this month.

Village PRO will also introduce the homeowners in Marblehead to PPG Pittsburgh Paints' color platform dubbed "The Voice of Color." This unique program will help homeowners visualize and select colors.

Pennsylvania-based PPG Industries is a leading supplier of paints, coatings, optical products, specialty materials, chemicals and fiber glass. It competes with the DuPont Performance Coatings segment of EI DuPont de Nemours & Co. ( DD ).

The company continued its positive surprise streak in first-quarter 2012 with adjusted earnings of $1.81 a share beating the Zacks Consensus Estimate by a couple of cents. However, hefty one-time charges dragged down its profits in the quarter.

Revenues rose 6% year over year to $3,752 million, also beating the Zacks Consensus Estimate. The company saw growth in each of its coatings businesses in the quarter. Its results were aided by strong domestic demand and growth in emerging markets.

The company foresees accelerated growth in emerging markets, buoyed by increased industrial activity in China. However, it feels that the European market will continue to remain under pressure. 

PPG Industries has a strong cash position, and continues to utilize cash on growth initiatives. Moreover, the company has been returning cash to its shareholders in the form of uninterrupted dividend pay outs. However, raw material costs remain a matter of concern.

We currently have a long-term Neutral recommendation on PPG Industries. The stock currently holds a Zacks #1 Rank, which translates into a short-term Strong Buy rating.

DU PONT (EI) DE (DD): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: DD , EI , PPG

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