PPG Industries (PPG) Hikes Prices for Selective Coatings

PPG Industries PPG has declared price increases for protective and marine coatings products globally. The price hike is effective immediately or as contracts permit.

The move comes after the company experienced broad inflation across a number of raw material categories. There has also been a steep rise in freight and logistics costs primarily due to increasing oil prices . Also. the company has been unable to fully offset its supply chain related inflation solely by ongoing productivity improvements and cost-saving initiatives.

This price hike will help mitigate rising raw material and operating costs experienced by the company. Products that have incurred the most significant increases include epoxy resins, zinc powders, titanium dioxide and solvents.

The company sees healthy growth in target segments for its protective and marine coatings solutions. With the price hike, the company will be able to further invest in its operations to meet increasing customer demand.

To improve cost structure, Shares of the company have moved up around 3.4% over a year, underperforming the roughly 7.9% growth recorded by its industry .

PPG Industries is pursuing significant restructuring actions that are mainly focused on regions and end-use markets with the weakest business conditions. The restructuring activities are projected to deliver around $125 million in annual savings with roughly $50 million of savings already realized in 2017 and another $45-$50 million expected in 2018.

During the fourth-quarter call, PPG Industries stated that it is committed toward deploying at least $2.4 billion of cash in 2018 on acquisitions and share repurchases as part of its earlier communicated goal of deploying $3.5 billion in 2017 and 2018 combined.

PPG Industries is also implementing appropriate pricing strategies to offset the impact of raw materials cost inflation. The company anticipates raw material inflation to continue through first-half 2018.