PPG Industries Launches Aerospace Sealant Injection Tool

PPG Industries (NYSE:PPG) launched an innovative high-pressure aerospace sealant injection tool – Semco 1010 HP – that addresses the unique application requirements of channel sealing aircraft wings for prevention of fuel leaks during flight.

The sealant application pressure being too high causes damage to the aircraft wing. The Semco 1010 HP dispensing tool has a pressure limiting mechanism to combat this issue.

Semco 1010 HP is the latest addition to the Semco high-pressure injection tool line, providing the users consideration advantages over earlier generations of dispensing tools.

The model works well with the highly viscous, noncuring sealant that is forced through grooves of aircraft wings. The tool is ATEX Class II certified and can be used in potentially volatile environments during maintenance applications. It is also salt fog resistant for highly corrosive theaters.

PPG Industries has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have moved up around 6.3% over this period, compared with roughly 4.5% gain recorded by the industry.

The company has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.

PPG Industries is also executing an aggressive cost cutting and restructuring strategy. The company has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.

PPG Industries is, however, exposed to currency headwind, macroeconomic challenges and volatility in raw materials and energy costs. Some of its end-markets including marine still remain sluggish.

PPG Industries, Inc. Price and Consensus

PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the chemical space include BASF SE (OTC:BASFY) , The Chemours Company (NYSE:CC) and Huntsman Corporation (NYSE:HUN) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BASF has expected long-term growth of 8.9%.

Chemours has expected long-term growth of 15.5%.

Huntsman has expected long-term growth of 7%.

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