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PPG to Hike Automotive & Industrial Coatings Price in Europe

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PPG IndustriesPPG has announced plans to implement a price hike and surcharges in Europe to offset a significant rise in raw material costs. The price changes will impact a particular group of automotive OEM (original equipment manufacturer) and industrial coatings products, effective May 1 or as contracts allow.

The company is witnessing input cost increases in Europe recently owing to significant tightening of commodity supply, supplier capacity constraints and regional feedstock availability. It will communicate the details of the price increases directly to customers.

PPG Industries has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company's shares have rallied around 9.6% over this period, compared with roughly 5.7% gain recorded by the industry.

The company has a diversified business, both in terms of products offered and geographical presence. The company's strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.

PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120-$130 million in annual savings, with $40-$50 million of savings expected to be realized in 2017.

PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges. It sees uneven growth in emerging economies in 2017. It is also exposed to volatility in raw materials and energy costs.

PPG Industries, Inc. Price and Consensus

PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the chemical space include Univar Inc. UNVR , Arkema S.A. ARKAY and Kronos Worldwide Inc KRO , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Univar has expected long-term growth of 9.4%.

Arkema has expected long-term growth of 12.3%.

Kronos has expected long-term growth of 5%.

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PPG Industries, 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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