Introduction
PPG Industries, Inc. has cemented its position in the aerospace industry with the addition of two cutting-edge adhesives to its portfolio. These innovative products are set to revolutionize the way aircraft structures are fabricated and maintained. PPG’s latest offering comprises the PPG PR-2940 epoxy syntactic paste adhesive (ESPA) and PPG PR-2936 adhesive, designed to meet the demanding requirements of modern aviation technologies.
New Adhesives Driving Performance
PPG PR-2940 ESPA adhesive is a lightweight potting compound carefully crafted for the bonding of aircraft internal structures. This robust adhesive has earned the trust of both original equipment manufacturers (OEMs) and maintenance, repair, and overhaul providers. It is tailored to fortify various components within an aircraft, including the inner wing structure, galley, lavatories, overhead bins, and flooring.
OEMs have turned to PPG PR-2936 adhesive to affix an aircraft’s metallic or composite skin to its internal structures. This epoxy-based adhesive offers an exceptional combination of mechanical strength, flexibility, and micro-cracking resistance over a wide temperature range.
Both adhesives demonstrate enhanced chemistries and low-density qualities, contributing to increased aviation fuel efficiency with a high strength-to-weight ratio. The inclusion of these adhesives in PPG’s aerospace product line marks a significant leap forward in engineering and operational excellence.
Market Performance and Outlook
Shares of PPG have shown resilience, gaining a commendable 5.9% over the past year. This performance is in line with the industry’s 17.5% rise, signifying PPG’s competitive stance in the market.
For the first quarter of 2024, the company expects an adjusted EPS in the range of $1.80-$1.87. Looking ahead to the full-year 2024, PPG foresees its adjusted EPS to be within the range of $8.34-$8.59. While anticipating an increase in the effective tax rate for the first quarter, PPG’s proactive measures are aimed at navigating the impact of heightened regional tax rates and the expected distribution of country-specific earnings
Analyst Rankings and Recommendations
PPG currently carries a Zacks Rank #3 (Hold). However, within the basic materials space, it faces competition from United States Steel Corporation (X), Carpenter Technology Corporation (CRS) and Alpha Metallurgical Resources Inc. (AMR).
United States Steel Corporation (X) holds a Zacks Rank #1 (Strong Buy) and has outperformed the Zacks Consensus Estimate in the past four quarters. Carpenter Technology Corporation (CRS) also maintains a Zacks Rank #1 and has consistently matched or exceeded the Zacks Consensus Estimate.
Alpha Metallurgical Resources Inc. (AMR) has witnessed a significant upward revision in its current-year earnings estimate and holds a Zacks Rank #1, signaling a favorable outlook for investors.
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