One of PPG Industries Inc.’s (NYSE:PPG - News) brands, PPG Pittsburg Paints, launched its first mobile application called The Voice of Color for iPhone, iPad and Android users. The application provides homeowners with an intuitive, on-the-go color resource. The free application showcases the company’s Voice of Color collection, while allowing the users to order and ship 8”x12” sample color sheets directly from the application.
The tool also allows users to take/upload inspiring photos for instantly matching with one of the company’s 2,000 color shades. Further, the company stated that the program will also offer suggestions for similar and complementary shades based on the selection.
In addition, the application offers the users the color resource with access to paint colors in The Voice of Color collection everywhere they go. PPG Pittsburgh Paints' The Voice of Color app can be downloaded directly for free from the iPhone or iPad Application Store, or the Android Market.
PPG Pittsburgh Paints falls under the Performance Coatings Business of PPG. PPG Pittsburgh Paints is a nationally recognized brand trusted by painting contractors, building owners, architects, designers and homeowners for over 100 years.
Recently, PPG posted net income of $216 million or $1.39 per share for the fourth quarter of 2011 compared with $205 million or $1.24 per share in the year-ago quarter. The results substantially exceeded the Zacks Consensus Estimate of $1.28 per share.
For the fiscal year 2011, PPG’s net income was $1.1 billion, or $6.87 per share, exceeding the Zacks Consensus Estimate of $6.78 per share. The company delivered record earnings in the quarter driven by higher revenues and cost-cutting strategies.
Revenues in the quarter went up 4% to $3.52 billion, slightly exceeding the Zacks Consensus Estimate of $3.50 billion. For full-year 2011, revenues increased 11% to $14.89 billion from the year-ago level.
PPG has a strong cash position, and continues to utilize cash on earnings growth initiatives. The company has also returned cash to its shareholders in the form of uninterrupted dividend pay outs. It also expects to deploy its strong cash position for continuous growth and aims to end 2012 with a cash balance of less than $1 billion.
However, raw material costs have been a matter of concern for PPG’s earnings. Though the raw material costs have shown a moderating trend, the price of its primary raw material titanium dioxide (TiO2) has been escalating. PPG faces stiff competition from the DuPont Performance Coatings segment of EI DuPont de Nemours & Co. (NYSE:DD - News) and BASF Coatings AG.
Therefore, the company maintains a Zacks #3 Rank, which translates into short-term (1 to 3 months) Hold rating. Currently, we reiterate our Neutral recommendation on the stock for the long term (more than 6 months).
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