PPG Industries Inc. (PPG) formed a 50-50 joint venture with Harsha Exito Engineering Private Ltd, India, to cater primarily to strong demand for fibre glass in India. The financial details were not disclosed.
Fibre glass is a polymer used in boats, automobiles, water tanks, roofing, pipes, etc.
Harsha Exito Engineering Pvt Ltd is situated in Tamil Nadu, India and will serve the Indian market by manufacturing and selling fiber glass reinforcement products. The expansion of India's economy will help drive demand for fiber glass in infrastructure, transportation and wind energy markets.
This would be PPG’s first fiberglass manufacturing plant in India. The company already exports fiber glass to that region.
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 #2 Rank (Buy). Currently, we hold a long-term Neutral recommendation on the stock.
PPG faces stiff competition from the DuPont Performance Coatings segment ofEI DuPont de Nemours & Co. (DD) and BASF Coatings AG.
DU PONT (EI) DE (DD): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment