QUOTE AND NEWS
Benzinga  Jul 18  Comment 
In a report published Friday, Bank of America analyst Kevin W. McCarthy reiterated a Buy rating on PPG Industries (NYSE: PPG), and raised the price target from $218.00 to $223.00. In the report, Bank of America noted, “We continue to view PPG...
newratings.com  Jul 18  Comment 
WASHINGTON (dpa-AFX) - PPG Industries Inc. (PPG) Friday said it will sell all the assets of its Mt. Zion, Illinois, glass manufacturing facility to automotive glass maker Fuyao Glass America Inc. Financial terms of the deal were not disclosed....
Automotive World  Jul 18  Comment 
Second quarter net sales of $4.1 billion, up 5 percent versus prior year All-time quarterly record adjusted earnings per diluted share from continuing operations of $2.83, up 24 percent year-over-year Record earnings in each major region,...
TheStreet.com  Jul 18  Comment 
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Here are some of the hot stocks Jim Cramer talked about on Thursday's Mad Money on CNBC: CHS data by...
SeekingAlpha  Jul 18  Comment 
PPG Industries, Inc. (NYSE:PPG) Q2 2014 Earnings Conference Call July 17, 2014 14:00 ET Executives Vince Morales - Vice President, Investor Relations Chuck Bunch - Chairman and Chief Executive Officer Michael McGarry - Chief...
newratings.com  Jul 17  Comment 
WASHINGTON (dpa-AFX) - PPG Industries Inc. (PPG) said Thursday that it has appointed executive vice president Michael McGarry as chief operating officer, effective August 1. During his 33 years with PPG, McGarry has served in a variety of key...
TheStreet.com  Jul 17  Comment 
NEW YORK (TheStreet) -- PPG Industries PPG declared a quarterly dividend of 67 cents a share Thursday. Shares of PPG were gaining 0.6% to $207.09. The dividend is in line with the company's previous. The quarterly dividend is payable on Sept....
Benzinga  Jul 17  Comment 
PPG Industries (NYSE: PPG) reported a 13% gain in its second-quarter earnings. PPG's quarterly profit surged to $386 million, or $2.75 per share, versus a year-ago profit of $341 million, or $2.35 per share. Excluding certain items, its adjusted...
newratings.com  Jul 17  Comment 
TheStreet.com  Jul 14  Comment 
NEW YORK (TheStreet) -- PPG Industries' recent acquisition of Mexico City-based Comex Group for $2.3 billion gives PPG the second largest paint market share in Mexico behind rival Sherwin-Williams . Currently, Comex has 3,600 stores compared to...
Motley Fool  Jul 7  Comment 
Coatings specialist seeks to acquire Mexican paint giant that its rival failed to nab.




 
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.
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