Yahoo Finance PPG and Chery Automobile Team Up to Open Color Creation Lab
PPG Industries Inc. PPG announced the launch of a Color Creation Lab in China in partnership with the automobile manufacturer, Chery Automobile Co. Ltd. PPG color stylists and Chery designers will collaborate at the facility in Wuhu, China, to develop new colors tailored to specific vehicle designs, from initial color recommendations through final materials for application in Chery's manufacturing plants.
The Color Creation Lab will showcase cutting-edge color digitalization, analysis, and evaluation solutions for interior and exterior automotive components. Extensive sampling and formulation testing will be performed to guarantee that the color has a consistent appearance, good adhesion and durability when it is mass-produced and applied in automotive facilities.
The Color Creation Lab is the result of PPG and Chery's 20-year collaboration. PPG started supplying coatings for Chery's paint ranges this year. The company established an automotive coatings unit in Wuhu in 2008 to assist Chery and other Chinese automakers.
Chery's Qingdao factory opened in 2022 with the PPG B1:B2 Compact Paint System, which speeds the painting process by eliminating the need for a separate primer coat. The system uses less energy to operate, allowing the Qingdao plant to operate more efficiently. Chery implemented the B1:B2 technology in its Wuhu plant earlier this year.
Shares of PPG have gained 11.7% over the past year against the 4.2% decline of its industry.
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PPG, on its first-quarter call, noted that it expects adjusted earnings of $6.95-$7.25 per share for 2023. The prediction excludes amortization expense, non-cash pension settlement charge, benefit from insurance recovery and costs related to earlier approved and communicated business restructuring.
Factoring in current global economic activities, geopolitical issues in Europe and higher interest rates in most developed countries, the company expects sales volumes in second-quarter 2023 to be flat with the potential for slight improvement or decrease of a low single-digit percentage year over year. Adjusted earnings for the second quarter are projected in the band of $2.05-$2.15.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. KOP, Gold Fields Limited GFI and Linde plc LIN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of 13.64%, on average. KOP has gained 20% in a year.
The Zacks Consensus Estimate for Gold Fields’ current-year earnings has been revised 23.5% upward in the past 60 days. The consensus estimate for current-year earnings for GFI is currently pegged at $1.05, indicating year-over-year growth of 8.3%. The company’s shares have gained 62.2% in the past year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 3.8% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. The company’s shares have gained 10.2% in the past year.
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