PPG Industries Inc. (PPG) announced a new agreement with Universal Display Corp. of Ewing, NJ, to supply organic light-emitting diode (OLED) materials and provide services in response to the growing market place.
As per the new agreement, PPG will remain the exclusive manufacturer of Universal Display’s proprietary phosphorescent OLED materials, which are sold to the rapidly-growing OLED display and lighting industries.
The new agreement, which expires on December 31, 2014, will replace Universal Display's current materials supply and service agreement with PPG Industries.
On July 21, 2011, PPG announced its second-quarter 2011 results. Net income was $340 million or $2.12 per share compared with $272 million or $1.63 per share in the year-ago quarter. The results were at par with the Zacks Consensus Estimate.
Net sales in the quarter were $4.0 billion, up 15% from $3.5 billion in the second quarter of 2010. It also outperformed the Zacks Consensus Estimate of $3.8 billion. The improvement was attributed to demand improvements, higher pricing in each of its coatings businesses, successful cost reduction initiatives and a gradual industrial recovery worldwide, partly offset by rising raw material costs.
PPG Industries had cash and cash equivalents worth $982 million as of June 30, 2011 compared with $784 million as of June 30, 2010. Total debt was $3.61 billion as of June 30, 2011 compared with $3.02 billion as of June 30, 2010. Inventories at the end of the quarter amounted to $1.82 billion versus $1.54 billion as of June 30, 2010.
PPG Industries has a short-team Zacks #3 Rank (Hold). Currently, we hold a long-term Neutral recommendation on the stock.
PPG faces stiff competition from the DuPont Performance Coatings segment of EI DuPont de Nemours & Co. (DD) and BASF Coatings AG.
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