Credit: Shutterstock photoPPG Industries, Inc.PPG has announced land acquisition in Tianjin, China, where the company intends to build a state-of-the-art paint and coatings research and development (R&D) center. The facility will be located in the Tianjin Economical and Technological Development Area (TEDA). The project is currently being finalized and slated to be completed in 2021.
With this move, the company will be able to strengthen its R&D footprint to better serve customers in China and globally as well as service all of its strategic business units.
The company will be benefited by the new Tianjin R&D center which will best position it to promote collaboration, leverage scale and continue boosting capabilities.
PPG Industries has modestly underperformed the industry over the past year. The company's shares have gained 7.1% compared with 7.8% growth of the industry.
PPG Industries, during its second-quarter call, said that it does not expect any respite from inflationary cost pressure in the third quarter. The company expects to continue its earnings-accretive cash deployment in the second half of the year. It remains committed to deploying $2.4 billion of cash in 2018 on acquisitions and share repurchases. The company also initiated a restructuring program and expects it to deliver annualized savings of roughly $85 million, once it is fully implemented.
During the second quarter, PPG Industries' Industrial Coatings segment sales and total sales volumes improved year over year. Acquisition-related sales contributed to the growth.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Stocks to Consider
PPG Industries is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials space are Huntsman Corp. HUN , Celanese Corp. CE and Air Products and Chemicals, Inc. APD .
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). Shares of the company have gained 20% in a year. You can see the complete list of today's Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The stock has rallied 20.8% in a year.
Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Shares of the company have risen 15.8% in a year's time.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
