QUOTE AND NEWS
Automotive World  May 10  Comment 
PPG (NYSE:PPG) today issued the following statement in connection with its proposal to AkzoNobel (AKZA.AS:AKZOY) to form a combined company: PPG has reviewed AkzoNobel’s May 8, 2017, response to PPG’s revised proposal of April 24, 2017. PPG...
Channel News Asia  May 10  Comment 
Paint maker PPG Industries said on Wednesday it could walk away from its pursuit of Dutch peer Akzo Nobel , which has rejected three takeover bids from the U.S. firm.
Automotive World  May 9  Comment 
PPG (NYSE:PPG) today announced that it is among America’s Best Large Employers, according to a list published today by Forbes magazine. This is the second consecutive year Forbes has recognized PPG among the 500 most highly regarded employers in...
Automotive World  May 9  Comment 
PPG (NYSE:PPG) will showcase its full line of printed electronics, conductive coatings and display coatings, and two PPG experts will host an exhibitor presentation, during Display Week 2017, sponsored by the Society for Information Display (SID),...
Wall Street Journal  May 9  Comment 
U.S. activist investor Elliott Management has asked a Dutch court to force Akzo Nobel to hold a special shareholder meeting seeking the removal of its chairman, its latest attempt to strong-arm the paint maker into sale talks with rival PPG.
Reuters  May 9  Comment 
Dutch paint maker Akzo Nobel on Monday rejected a third takeover proposal from PPG Industries, leaving its larger U.S. rival to decide whether to make a formal bid without the support of Akzo's board, or throw in the towel.
Wall Street Journal  May 8  Comment 
PPG can’t turn properly hostile on Akzo Nobel, so it needs to be prepared for a lengthy game of cat-and-mouse with the company’s board
New York Times  May 8  Comment 
The Dutch maker of Dulux paint said the latest bid still undervalued the company and would have faced “complex and lengthy regulatory hurdles.”
Financial Times  May 7  Comment 
Rebuff forces suitor to choose between making hostile bid or walking away




 
TOP CONTRIBUTORS

PPG Industries, Inc. (NYSE: PPG) makes "coatings" - materials that include simple house paint, but also higher-end chemicals used in the aerospace industry and (for example) Transitions® lenses which change from shaded to clear when the person wearing them is indoors.

Sales in the United States have decreased due in part to a weakened housing market. Fewer homes are being built, meaning there is a decreased demand for construction materials and thus lower sales for PPG. Also, increases in transportation costs due to inflation of fuel prices resulted in a $20 million increase in expenses.

Company Overview

Business and Financials

PPG's sales in 2009 totaled $12.2 billion compared to $15.8 billion in 2008, a decrease of 23%.[1] This was largely due to lower sales volumes in all segments reflecting the adverse impact of the global recession on demand, weaker foreign currency, and lower selling prices. Unsurprisingly, its net income fell from $538 million in 2008 to $426 million in 2009.

Business Segments

PPG breaks its operations into five segments: i) Performance Coatings, ii) Industrial Coatings, iii) Optical and Specialty Materials, iv) Commodity Chemicals, and v) Glass.

Performance Coatings

The Performance Coatings segment is composed of refinish, aerospace and architectural coatings businesses:

  1. The refinish coatings business produces coatings for automotive and fleet repair, as well as specialty coatings for signs. Its products are sold through distributors.
  2. The aerospace coatings business produces sealants, paint strippers and armor for commercial and military aircraft.
  3. Architectural coatings produces both protective and decorative coatings for buildings and bridges. This business owns 440 stores in North America and 80 in Australia.

The performance coatings segment sells its products worldwide either directly to consumers or through company-owned distributors.

The Industrial Coatings

This segment contains the automotive, industrial and packaging coatings businesses. These coatings are customized for each customer. The packaging businesses supplies product manufacturers with coatings and inks for consumer product containers. The performance and industrial coatings businesses share factories around the world. They have 31 facilities in North America (28 in the United States, 2 in Canada and 1 in Mexico).

Optical and Specialty Materials

The Optical and Specialty Materials segment primarily produce Transitions® lenses, sunlenses and optical materials. This segment also produces Teslin® synthetic printing sheets, which are used in waterproof labels, passports and ID's. This segment operates 13 plants worldwide.

The Commodity Chemicals

This segment sells its products directly to manufacturers in the chemical processing, rubber, paper and plastics industries. This segment operates 3 factories in the U.S., 1 in Canada and another in Taiwan.

PPG's Glass segment

This segment produces flat glass and fiberglass. Most of its products are sold directly to manufacturers and its main markets are construction, transportation and electronics. The Glass segment operates 10 factories around the world and partially owns operations in China, Japan, Taiwan and the United States.

Trends and Forces

PPG's earnings depend in part on the price of energy

Natural gas is PPG's primary energy source. Every $1.00 per million Btu increase in the price of natural gas leads to an increased cost of 60 to 70 million dollars per year. Natural gas prices can fluctuate wildly, as evidenced in 2008 when the price of natural gas doubled within 3 months, only to drop back down again in 2009.

Urbanization in China Means there is a Growing Market for PPG

Construction spending in China increased by 165%, and is increasing by an average of 25% each year.[2] According to the 11th Five Year period (2006-2010), construction plans estimate 2 billion new square meters each year. By 2010 China built an estimated 80 billion square meters of new housing.[3] Growing urbanization in China represents more growth opportunities for PPG.

Competition

Akzo Nobel N.V. (AKZOY) is the world's largest paint maker and one of the largest chemical manufacturers. Its business is divided into two segments: coatings and specialty chemicals.[4]

Nippon Sheet Glass produces glass and glazing systems in four areas: Building Products, Automotive Products, Information Technology Materials, and Glass Fiber. Its flat glass business composes 90% of annual sales.[5]

Sherwin-Williams Company (SHW) is a global producer of paints and coatings. It sells its products under brand names such as Dutch Boy®, Pratt & Lambert®, Martin-Senour®, Dupli-Color®, Krylon®, Thompson's® and Minwax®.[6]



References

  1. PPG 10-K 2009 Item 7 Pg. 15
  2. "China: Architecture, Construction & Engineering." U.S.A. Department of Commerce.
  3. "China: Architecture, Construction & Engineering." U.S.A. Department of Commerce.
  4. Akzo Nobel About Us.
  5. About NSG.
  6. Sherwin-Williams Investor Relations.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki