PPG Industries Inc. PPG announced that its Novaguard 810ER coating was qualified by the U.S. Naval Sea Systems Command (Navsea) for use on potable water tanks.
Notably, the qualification makes it the only coating that passes Navsea tests for six classes of tanks. The company noted that the coating has become the first to be qualified by Navsea for all major tank lining applications.
Per management, having one coating certified for all the tanks on a U.S. Navy ship has significant benefits for Navsea and its coating contractors such as simplified ordering, fulfillment and materials management. Moreover, maintenance and fabrication of tank may be simplified and strengthened as contractors use just one product.
Novaguard 810ER coating is a single coat, direct-to-metal novolac epoxy coating that quickly installs up to 20-30 mils, without sagging. Moreover, the coating offers one-coat coverage, with outstanding edge retention, saves time and labor as well as speeds up return to service.
Also, the Novaguard 810ER coating’s high film build properties, broad application temperature range and ultra-high solids render it ideal for applicator use.
Notably, Novaguard 810ER coating can quickly be touched up with one-quart cartridges or 12-ounce burst packs, enabling tanks to undergo rigorous inspections.
Shares of PPG Industries have lost 11.6% in the past year compared with a 15.2% decline of the industry.
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Early this month, the company stated that it approved substantial restructuring actions to lower its global cost structure. The plan includes a voluntary separation program that was offered in the United States and Canada. Upon completion, PPG Industries expects the planned actions to offer $160-$170 million in annual pre-tax cost savings, with roughly $25-$35 million of savings forecasted in 2020. Moreover, the remainder of the annual cost savings is expected to be realized by the end of 2021.
PPG Industries will also record pre-tax restructuring charges of $160-$180 million (before tax) in the second quarter of 2020. The company is also expected to incur an additional $10 million in restructuring costs over future quarters. The overall cash outlay is around $180 million to complete the actions.
PPG Industries, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
PPG Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space are Agnico Eagle Mines Limited AEM, Franco-Nevada Corporation FNV and Barrick Gold Corporation GOLD.
Agnico Eagle currently sports a Zacks Rank #1 (Strong Buy) and has a projected earnings growth rate of 53.6% for 2020. The company’s shares have gained 25.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has an expected earnings growth rate of 19.2% for 2020. The company’s shares have surged 64.1% in the past year. It presently carries a Zacks Rank #2 (Buy).
Barrick has a projected earnings growth rate of 64.7% for the current year. The company’s shares have rallied around 70% in a year. It currently has a Zacks Rank #2.
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