PPG Industries Inc.’s (PPG) protective and marine coatings (PMC) business has manufactured over 100,000 gallons of coatings in a new small batch process at its Little Rock, AR, manufacturing facility. The Little Rock plant is PPG’s largest protective and marine coatings manufacturing facility in the Americas.
In order to fulfill customers’ needs for small quantities and made-to-order products such as military-specified coatings – PSX polysiloxanes and MEGASEAL flooring coatings – PPG invested in the batche process.
The process has enabled PPG to decrease order lead times for small batches by more than half, which helps its customers improve their responsiveness. This also satisfies customers with faster turnaround on small and custom batch orders.
In April 2014, PPG Industries recorded adjusted earnings from continuing operations (excluding acquisition-related expenses of $2 million or a penny per share) of $1.98 a share for first-quarter 2014, up 42% from $1.39 per share reported in the year-ago quarter.
The company has delivered record first-quarter adjusted earnings on the back of a strong coatings portfolio, broad global footprint, aggressive cost discipline, prudent cash deployment and targeted cost synergies received from acquisitions.
Revenues rose 17% year over year to $3,636 million in the reported quarter from $3,108 million in the year-ago quarter. The year-over-year rise was attributed to higher industry demand in aerospace and automotive original equipment manufacturers (OEM) coatings. Results were also aided by accelerated global volume growth across all regions including Europe, where volumes rose due to economic recovery.
PPG Industries carries a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering include Compass Minerals International Inc. (CMP), L'Air Liquide SA (AIQUY) and Koninklijke DSM N.V. (RDSMY). While Compass Minerals carries a Zacks Rank #1 (Strong Buy), L'Air Liquide and Koninklijke DSM hold a Zacks Rank #2 (Buy).
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