- The price hike will allow PPG Industries to deliver exceptional products and lend support to customer services.
- PPG Industries is trying to counterpoise the surging freight, raw materials, and logistics costs through price-control measures.
In a recent turn of events, PPG Industries, Inc. has implemented a price increase in China for its automotive refinish products. The hike reportedly was brought into effect from April 1, 2019. Sources close to the development claim that the move significantly impacts the automotive refinish coatings industry in the nation.
Of late, PPG Industries has experienced cost hike in a number of business realms, particularly in freight, raw materials, and logistics. According to market analysts, the firm is trying to counterpoise the surging costs through price-control measures wherever possible. Nonetheless, the collective consequence is influencing its business.
According to the company, the increase in prices will allow it to continue providing exceptional products and aid customer service. The company further mentioned that it will communicate the details pertaining to cost increase directly to its customers.
In January this year, PPG Industries said that it projects price inflation, Y-O-Y unfavorable foreign currency change accompanied by lower sales volume to influence performance in the initial half of the year 2019. On the basis of these factors, the firm anticipates Q1 2019 earnings per share (EPS) to fall in the range of $1.18 to $1.23.
According to trusted sources, the firm foresees sales growth in the range of three to five percent at constant currency for the year 2019. It also predicts adjusted earnings per share growth of seven to ten percent. In addition to this, the company anticipates delivering a minimum of $70M in cost savings in 2019.
According to credible reports, the shares of PPG Industries have risen by 4.3 percent over the past year, compared to the industry’s decline of 20.7 percent.