PPG IndustriesPPG received an ANSI/NSF 61 standard certification for its Envirocron epoxy-based powder coatings. The drinking-water components certification allows the powder to be used in the production of metal pipes, tanks, faucets and other parts that come into contact with drinking water, drinking-water chemicals or both, deeming it safe.
PPG Industries will now be able to cater to the demand for a high-performance food- and water-safe coatings powder as a result of this certification. The coatings were previously certified for non-direct food contact for several years. With the new certification, the company will be able to serve a broader range of customers who are looking for resilient, attractive and secure coatings for their products.
The certified Envirocron powder coatings are available as one- and two-coat systems. The cure times range between 10 and 20 minutes, depending on the coating as well as type of application.
NSF International, an independent body that certifies products for water, food and health safety, certified PPG Industries' Duraform AP clear liquid coil coatings for the ANSI/NSF 51 standard for non-direct food contact applications last year. Manufacturers of appliances, shelving and other food service equipment often use products certified to this standard. PPG Industries' Durocron white acrylic coating is also certified to this standard since several years.
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.
Revenues from the Industrial Coatings segment of PPG Industries rose 2% year on year to $1.37 billion in the first quarter backed by an increase in sales volume as well as acquisition-related sales, partly offset by currency headwinds. Segment income rose almost 9% from the prior-year quarter to $265 million, due to manufacturing cost efficiencies and benefits from restructuring and acquisitions. The company is taking steps toward its goal of developing and commercializing customer-driven technologies and consumer branding strategies.
Shares of PPG Industries rose around 0.9% in the trading session on May 25 and closed the day at $108.32.
PPG Industries currently holds a Zacks Rank #2 (Buy).
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