Tags: PPG | specialty | growth | products

PPG Focuses on Specialty Growth Products

By    |   Wednesday, 28 Dec 2011 04:27 PM

PPG Industries (PPG) saw sales and profits significantly reduced by the recent economic recession. The company's results started to bounce back in 2010, and a new focus on specialty products is part of the plan for continued profit growth.

PPG Industries is a manufacturer of protective and specialty coatings, optical products, glass and chemicals. Coatings and optical are the focus areas of the company and have grown from bringing in 60 percent of revenues to more than 80 percent in the last decade.

North America accounts for about half of revenues, and emerging markets are a quarter of sales and growing. Sales in Asia and Latin America have recovered to well above pre-recession levels, while sales in the developed markets are recovering more slowly and are still below the 2008 peak.

For the first nine months of 2011, PPG reported revenues of $11.37 billion, up 14 percent from $10 billion in the first three quarters of 2010. Net income for the period was $5.48 per share, up 62 percent from $3.39 a year earlier.

In comparison, the company posted net income of $5.18 for all of 2010. Third quarter net income was the fifth consecutive quarter of year-over-year record profits results. The consensus earnings estimate is $6.80 for full year 2011.

Selected growth markets

Recent presentations from PPG show a company focus on a couple of areas for continued strong growth. In coatings sales, the Asia Pacific region currently accounts for about 20 percent of the division’s revenues.

Over the last six years, sales and income from Asia Pacific increased at a compounded 24 percent for the coatings segment. Optical lenses is another growth opportunity, where the company's Transitions lenses currently pick up only 5 percent of the total global sales of eyewear lenses.

Besides the current strong record of sales and earnings growth, PPG has a long term record of dividend payments. The annual dividend has been increased for 39 consecutive years. At $80 per share, the current dividend yield is 2.8 percent.

Recently, the analysts at Wells Fargo reiterated their outperform rating on PPG Industries. In the same week, the Goldman Sachs analysts lowered their rating to neutral from buy.

The company next reports on Jan. 19.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
PPG Industries (PPG) saw sales and profits significantly reduced by the recent economic recession. The company's results started to bounce back in 2010, and a new focus on specialty products is part of the plan for continued profit growth. PPG Industries is a manufacturer...
PPG,specialty,growth,products
369
2011-27-28
Wednesday, 28 Dec 2011 04:27 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved