This chemical company beat estimates by a penny last quarter and was just awarded a $1.14 million project from the U.S. Department of Energy to develop new silica-based performance fillers for non-tread components which improve the fuel efficiency and performance of tires.
PPG Industries, Inc. (PPG)
From The Investment Reporter
Pittsburgh-based U.S. Key stock PPG Industries, Inc (PPG) is a manufacturer of a broad range of performance coatings, industrial coatings and glass.
In 2016, PPG earned $1.548 billion, or $5.82 a share. This was up by 7.2%. PPG also spent $1.05 billion to buy back its shares last year.
At last count, PPG operated 153 manufacturing sites and affiliates in 71 countries. International operations accounted for 63% of its sales. In 2016, the rising dollar shaved $400 million off sales and $70 million off pre-tax earnings.
It made capital investments of $400 million and spent $350 million in acquisitions last year. Both measures should generate higher sales volumes this year. In 2017 and 2018 combined, the company plans to spend $2.5 billion on acquisitions. PPG is also increasing its prices and starting a new restructuring program, aiming for $125 million in yearly savings.
In 2017, PPG’s earnings are expected to climb by 6.9%, to $6.22 a share. Based on this estimate, the shares trade at a reasonable price-to-earnings, or P/E, ratio of 16.2 times. Next year, PPG’s earnings growth is expected to accelerate by 9.6%, to $6.82 a share. Based on this estimate, the shares trade at a safer P/E ratio of 14.8 times.
This ‘dividend aristocrat’ has raised its dividend for 45 years in a row. It remains a buy for long-term share price gains as well as decent and growing dividends.
Mark Johnson, Copyright 2014 MPL Communications, Inc. Reproduced by permission of The Investment Reporter, www.adviceforinvestors.com, 800-804- 8846, February 2017