PPG Industries (PPG) Hikes Prices For Selective Coatings

 | Apr 08, 2018 10:15PM ET

PPG Industries (NYSE:PPG) has declared price increases for protective and marine coatings products globally. The price hike is effective immediately or as contracts permit.
The move comes after the company experienced broad inflation across a number of raw material categories. There has also been a steep rise in freight and logistics costs primarily due to increasing oil prices. Also. the company has been unable to fully offset its supply chain related inflation solely by ongoing productivity improvements and cost-saving initiatives.
This price hike will help mitigate rising raw material and operating costs experienced by the company. Products that have incurred the most significant increases include epoxy resins, zinc powders, titanium dioxide and solvents.
The company sees healthy growth in target segments for its protective and marine coatings solutions. With the price hike, the company will be able to further invest in its operations to meet increasing customer demand.
Shares of the company have moved up around 3.4% over a year, underperforming the roughly 7.9% growth recorded by its

PPG Industries, Inc. Quote

Zacks Rank & Stocks to Consider

PPG Industries currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Kronos Worldwide Inc. (NYSE:KRO) , Methanex Corporation (NASDAQ:MEOH) and LyondellBasell Industries N.V. (NYSE:LYB) .
Kronos has an expected long-term earnings growth rate of 5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 37.3% in a year. You can see Zacks Investment Research
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Written By: Zacks Investment Research

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