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Recent Commentary:

PPG Industries to Outperform - Analyst Blog

Tue, 15 May 2012
Zacks Investment Research

We are upgrading our long-term recommendation on PPG Industries (PPG) to Outperform from Neutral. The company’s strategy of diversifying its business across various products and geographies has come in handy in difficult times of the economy.

It has trumped the Zacks Consensus Estimates over the last four quarters, which is a testimony to the fact that it has done well even when the economy was under pressure. More importantly, the company’s revenues from emerging markets grew over the last three years and constituted 27% of total revenue in 2011.

PPG Industries is focused on tapping the potential of emerging markets and acquired the coatings business of Colpisa earlier this year. The acquisition has led the company to become the only major coatings supplier to automotive original equipment manufacturers (OEMs) with a production facility in Columbia.

In addition, the company has an impressive cost cutting and restructuring strategy to boot. It expects to save 20 to 25 cents a share towards the end of the year through its restructuring measures.

However, the company’s considerable presence in the U.S. construction, European architectural and global auto, appliance and industrial coating markets leaves it vulnerable to economic headwinds. The construction market in the U.S. might exhibit lethargic growth in the near-term and affect the company’s earnings generating potential.

Moreover, PPG Industries’ operational performance is tied to raw material imports and energy. As a result, any significant change in the price of natural gas or strengthening of foreign currency against the local currency of its manufacturing facilities might have an adverse impact on results.

The company’s first-quarter 2012 adjusted net earnings (excluding one-time items) of $1.81 a share exceeded the Zacks Consensus Estimate of $1.79. Revenues jumped 6% year over year to $3,752 million, trumping the Zacks Consensus Estimate of $3,696 million.

The jump in revenues was driven by across the board improvement in the company’s coatings businesses. Its businesses were also helped by robust domestic demand along with growth in emerging regions. However, weakness in Europe pulled back some of the growth seen in the company’s businesses.

Going forward, the company anticipates that domestic growth in the second quarter will be consistent with the first quarter. It also expects rapid growth in emerging markets on the back of improved industrial activity in China. However, it expects the European market to be a sore point in the second quarter as well.

PPG competes with EI DuPont de Nemours & Co. (DD) and BASF Coatings AG and currently holds a short-term Zacks #1 Rank (Strong Buy).

DU PONT (EI) DE (DD): Free Stock Analysis Report

PPG INDS INC (PPG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Investors Remain Risk Averse: Strategist

CNBC.com
Tue, 01 May 2012 23:08 GMT
Adrian Mowat, Chief Asian and Emerging Markets Equity Strategist, JPMorgan says investors remain underweight equities.

Opportunities in Chinese Stocks in Q2

CNBC.com
Sun, 29 Apr 2012 23:07 GMT
Paul Heffner, Partner & CIO, CEO, Gen2 Partners sees opportunities in Chinese stocks and emerging markets in Q2.

Comment on U.S. Financial System: Is It Finally Stable? by kenezen

ino.com
Fri, 27 Apr 2012 11:32:16 +0000
We've had a pull back in commodities not included in CPI which should change it's designation as it addresses nothing concerning Primary Consumer needs like food and fuel. Grains are rebounding which signals a probable continuance of real inflation by rising food and fuel prices. If we reflect on the historically continuing reduction in dollar purchasing power and the massive issuance of currencies throughout the world, a rising price of life sustaining commodities is very probable. When we combine this with continuing movement of our industry's hiring movements to emerging markets and non-repatriation of profit to America added to the socialization of our Federal Government, we have challenges.

Comment on Poll: Speculation to blame? by Sam

ino.com
Fri, 20 Apr 2012 20:22:29 +0000
Obama does't know which end of his backside is up!! (Just my opinion). I expect oil and gasoline prices are up due to the sucess of the world. The emerging countries/markets are stiving to have what we have been blessed with for many years. Hopefully after the election we can start drilling full speed, converting to LPG and exporting oil and LPG to reduce our deficit and develop something even better!

'Gold Gives You Nothing' Amid High Inflation: Analyst

CNBC.com
Thu, 12 Apr 2012 05:18 GMT
The price of gold has fallen, with the CBOE gold index hitting a new 52-week low recently, and Stuart Oakley, head of emerging markets FX Trading at RBS, told CNBC that the gold trade is over for now.

Articles:

Top 5 International Bond Mutual Funds - Best of Funds

International bond markets presently constitute 60% of the available fixed-income investment opportunities worldwide. This includes bond issues from emerging economies and non-government entities, such as European corporations. Since interest rate fluctuations differ from country to country, international bonds are another way to balance downturns in the U.S. markets. Further they help in diversifying currency exposure and protecting assets against a long-term secular decline in the U.S. dollar.

Top 5 European Mutual Funds - Best of Funds

One of the richest continents in the world, Europe consists of both mature markets and emerging economies. The European Union represents the largest economy in the world and is expected to grow at a rapid pace as more countries join the regional bloc. Its developed nations offer safe destinations for investors' capital, emerging markets offer exciting growth prospects for those willing to take on a higher degree of risk. Mutual funds focusing on Europe are back in favor again as the region offers healthy prospects for investors.

Top 5 European Mutual Funds - Best of Funds

With a mix of both stable developed markets and emerging economies, the European region makes up one of the most diverse economic zones in the world. Large volumes of foreign direct investment and high commodity prices have ensured that emerging markets in regions like the Mediterranean and Eastern Europe have continued to grow at a fast pace. At the same time developed markets are on the verge of recovering from the global economic crisis. European mutual funds tap into the unique strengths of this vibrant region and are a natural choice for those seeking to grow their investments.

Top 5 International Bond Funds - Best of Funds

Get international with MainStay Global High Income A (MGHAX), T. Rowe Price Emerging Markets Bond (PREMX), Federated International High Income A (IHIAX), Putnam Global Income A (PGGIX), and Goldman Sachs Emerging Markets Debt A (GSDAX).

Top 5 International Mutual Funds - Best of Funds

Get International with Ivy International Growth A (IVINX), Sentinel International Equity A (SWRLX), Wasatch International Growth (WAIGX), Laudus International MarketMasters (SWOIX) and Bernstein Emerging Markets (SNEMX).

Mon, 20 Jun 2011 05:36:00 GMT
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Emerging Markets

Recent Commentary:

PPG Industries to Outperform - Analyst Blog

Investors Remain Risk Averse: Strategist

Opportunities in Chinese Stocks in Q2

Comment on U.S. Financial System: Is It Finally Stable? by kenezen

Comment on Poll: Speculation to blame? by Sam

'Gold Gives You Nothing' Amid High Inflation: Analyst

Articles:

Top 5 International Bond Mutual Funds - Best of Funds

Top 5 European Mutual Funds - Best of Funds

Top 5 European Mutual Funds - Best of Funds

Top 5 International Bond Funds - Best of Funds

Top 5 International Mutual Funds - Best of Funds

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