Chemical product manufacturer, PPG Industries, Inc(PPG) reported a force majeure on Thursday as a result of fire at the Lake Charles chemicals complex in Louisiana.
Although the fire did not cause any environmental damage, it did send one PPG employee to the hospital. The December 24 fire directly affected the vinyl chloride monomer unit.
The company reported that this incident will likely have a direct impact of $5 million to $8 million on its earnings in the fourth quarter of 2012. It will also affect 2013 by $2 million to $5 million.
PPG’s vice president Michael H. McGarry commented, “the plant emergency response team did an excellent job extinguishing the fire quickly, however we must declare force majeure as a result of the damage and shutdown of the vinyl chloride monomer unit and reduced chlor-alkali operating rates.”
PPG shares were mostly flat during premarket trading Thursday. The stock is up 61% YTD.
The Bottom Line
Shares of PPG Industries (PPG) have a 1.75% dividend yield, based on last night’s closing stock price of $134.74. The stock has technical support in the $125-$131 price area. The shares are trading near all-time highs.
PPG Industries, Inc(PPG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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