PPG Industries ' PPG enhanced-design windshields for the Airbus A320 family of jet liners have been displaying exceptional field service and reliability for airlines. These windshields and aft fixed cockpit windows produced by the company have amassed considerable flight-hours relative to earlier versions. The enhanced design was developed by PPG by working closely with Airbus and aircraft operators after monitoring field performance.
PPG Industries has delivered over 4,000 new-design windshields since the second quarter of 2010 and almost 2,000 enhanced aft fixed cockpit windows from the fourth quarter of 2014 to Airbus and aircraft operators. The advanced technology used for the development of the design reduced maintenance downtime, lowered the environmental impact of aging and improved reliability. These technological benefits have helped the company lead the market for international customers by a wide margin.
The flight deck windows developed by PPG can be used on Airbus A318, A319, A320 and A321 single-aisle aircraft for original equipment and replacement applications. The technology can also be used on the newly launched NEO (New Engine Option) Family. A sliding cockpit window, with a design similar to the aft fixed window, will enter into service later this year for the A320 family.
The production of the windshields and cockpit side windows is carried out at PPG's Huntsville, AL facility. The company has manufactured and delivered over 30,000 flight deck windows for production and aftermarket for the A320 Family airplanes since 1990.
PPG Industries saw higher profits in the first quarter of 2016, aided by its cost-management initiatives and contributions from acquisitions. Adjusted earnings for the quarter beat the Zacks Consensus Estimate, while revenues missed expectations. The company raised its quarterly dividend by 11% and also reaffirmed its plans to deploy $2-$2.5 billion cash over 2015-2016 toward acquisitions and share repurchases.
The Glass segment's revenues fell 2% in the quarter to $261 million from the prior-year quarter. The segment's income was also lower year over year by $2 million at $28 million. Earnings were negatively impacted by $8 million facility outage expense, lower sales volume as well as lower equity earnings from Asian joint ventures. However, improved selling prices and strong cost management partially offset the negative impact.
For the next one or two quarters, PPG expects the aerospace sector to face several hurdles, including lower aftermarket sales and low demand in Asia. However, the company anticipates the sector to improve from the second half of the year.
PPG Industries has a diversified base of products and markets, and looks to grow its businesses strategically alongside controlling costs. The company continuously attempts to develop innovative products across all its segments, using state-of-the-art technology.
PPG Industries currently holds a Zacks Rank #2 (Buy).
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