Specialty products company, PPG IndustriesInc. (PPG) announced the launch of its ACCU-TAB wastewater tablets in small-scale aerobic wastewater systems.
As per the company, its ACCU-TAB wastewater tablets provide enhanced erosion control and reduced wicking to effectively kill bacteria, control algae and destroy organic contaminants in small-aerobic water treatment systems.
The company stated that patented Accu-Tab calcium hypochlorite wastewater tablets are manufactured with HI-SIL (TM) H-303 silica to provide a steady source of available chlorine. Accu-Tab wastewater tablets are compatible with standard 2 5/8-inch feeders, contain 73% nominal available chlorine and are made and serviced in the U.S. with no foreign materials.
PPG has the expertise and experience to create this next generation of wastewater tablets as it has been providing private-label calcium hypochlorite tablets for wastewater applications and NSF-certified tablets for drinking water for more than 20 years. The Accu-Tab wastewater tablets developed by PPG thus provide simple and effective disinfection with minimal maintenance and high reliability.
The U.S. Environmental Protection Agency-registered and certified to NSF/ANSI Standard 60, Accu-Tab wastewater tablets are available through a nationwide network of distributors.
In July 2011, the company released its second quarter 2011 results. PPG posted net income of $340 million or $2.12 per share for the second quarter of 2011, compared with $272 million or $1.63 per share in the year-ago quarter. The results were on par with the Zacks Consensus Estimate.
Net sales for the quarter were $4.0 billion, up 15% from $3.5 billion in the second quarter of 2010. It also outperformed the Zacks Consensus Estimate of $3.8 billion. The improvement is attributable to demand improvements, higher pricing in each of its coatings businesses, successful cost reduction initiatives and a gradual industrial recovery worldwide, partly offset by rising raw material costs.
During the quarter, the company finalized the acquisitions of Equa-Chlor and Ducol Coatings and announced its agreement to acquire Dyrup A/S.
Looking ahead, the company anticipates further pricing gains in every segment, driving volume increases that should feed earnings growth through continued cost focus. PPG continues to work on initiatives to deploy cash to grow earnings.
PPG is continuing to utilize its strong cash position. In the second half of 2011, it expects to deploy $500 million to $1 billion of cash focused on earnings accretion, and will continue the tradition of returning cash to its shareholders.
The resumption of automotive OEM production and its position in high-growth businesses and regions, such as aerospace and Asia/Pacific, will supplement PPG’s growth in the remainder of the year. Although inflation has moderated somewhat, PPG intends to secure additional pricing in businesses where it has not been able to fully offset inflation despite aggressive cost management and pricing actions this quarter.
The strong second quarter performance, along with successful adoption of growth strategies and their meaningful implementation, inspire confidence in the company. In addition, the macro economy and the industry are also showing signs of recovery. Therefore, PPG Industries has a Zacks #3 Rank (Hold) in the short term and we have a long-term Neutral recommendation on the stock.
PPG faces stiff competition from DuPont Performance Coatings of EI DuPont de Nemours & Co. (DD) and BASF Coatings AG.
