PPG Industries Lifts Force Majeure in Western US & Canada

PPG Industries Inc. PPG has lifted the force majeure on architectural, residential and specialty glass products for customers in the western U.S. and Canada and resumed normal operations at its Fresno, CA, glass manufacturing facility. The company had declared force majeure because of unexpected mechanical production issues at the facility.

PPG Industries also announced that it will invest $20 million in upgrades for the Fresno facility, which are scheduled to begin in 2016. PPG intends to rebuild the glass tank and add other manufacturing equipment at the plant that will lead to increased production capabilities. This investment will enable the company to meet continued demand for PPG flat glass products manufactured at the facility.

PPG Industries has a diversified business and occupies a leading position in several paints and coatings end markets. Its adjusted earnings per share for second-quarter 2015 topped the Zacks Consensus Estimate. However, sales fell short of expectations due to unfavorable currency translations. The company also saw a decline in its profit, hurt by hefty restructuring charges.

Revenues from the company’s Glass segment dropped 3% in the second quarter to $279 million, as currency headwinds more than offset pricing gains. Glass volumes were flat due to the sale of a production unit in 2014. Fiber glass volumes were flat year over year.

PPG Industries is looking for opportunities to grow its businesses strategically while controlling costs. Healthy momentum across automotive and aerospace markets and synergies of acquisitions are expected to support its results moving ahead.

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

Some better-ranked stocks in the chemical space are Koppers Holdings Inc. KOP, Air Products & Chemicals Inc. APD and Arkema S.A. ARKAY.While Koppers sports a Zacks Rank #1 (Strong Buy), both Air Products and Arkema carry a Zacks Rank #2 (Buy).