Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, October 19, 2018

Article Excerpt

PPG INDUSTRIES INC., $101.39, symbol PPG on New York, is the world’s largest producer of coatings and paints for the automotive, aerospace, construction, and industrial markets. Its paint brands include PPG, Olympic, Glidden and others. On October 10, 2018, Trian Fund Management, an activist investment firm led by Nelson Peltz, announced that it had taken a 2.9% interest in PPG. PPG’s shares suffered a big drop a couple of days before Trian announced its investment. That’s because the company warned its third-quarter sales will be flat at $3.8 billion. The coming results are due to higher raw material prices (including the effects from higher epoxy resin and oil prices) as well as increased shipping costs. In addition, demand in China has softened, and sales to the auto refinish market have weakened as several U.S. and European customers are carrying high inventories due to reduced demand. In the three months ended June 30, 2018, PPG’s revenue rose 8.6%, to $4.1 billion from $3.8 billion,…