Tronox Ltd (TROX), PPG Industries, Inc. (PPG): Are These Companies Reaching a Dead End?

The Foolish bottom line
Even if things improve in the near future, investors have little reason to remain optimistic for the long term. At the beginning of the year, DuPont forecast “moderately” lower sales and 7%-9% lower operating margins for its performance chemicals (TiO2) business for the full year. I am not too sure how a price increase can help margins if cost continues to be a pressure.

It looks like a vicious circle to me, with TiO2 producers trying to pass on costs while customers look for alternatives to beat the heat. The TiO2 business is clearly losing its charm, and investors should beware.

The article Are These Companies Reaching a Dead End? originally appeared on Fool.com.

Fool contributor Neha Chamaria has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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