Advertisements

PPG to Provide Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

PPG announced that it expects sales volumes in the third quarter 2021 will be lower by $225 million to $275 million, compared to what the company anticipated at the start of the third quarter. PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies; further reductions in customer production due to certain parts shortages such as semi-conductor chips; and continuing logistics and transportation challenges in many regions, including the U.S., Europe and China. In addition, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million.

The coatings commodity supply disruptions have further deteriorated since the company’s earnings announcement on July 19, due to several additional force majeure declarations and lower material allocations from certain suppliers. The company also continues to assess the full impact of Hurricane Ida, which could include additional supply chain effects.

The company reported that aggregate global economic demand remains robust, and that inventories in many of the company’s end-use channels are at very low levels. When supply conditions normalize, the company continues to expect strong sales growth into 2022. In addition, the company reported that it continues to make measurable progress implementing selling price increases to help offset the elevated raw material costs, and is seeking further increases. Overall price increases for the third quarter are estimated to be about 5% with similar contributions from both operating segments.

Based on the uncertainty created by these continuing and evolving disruptions, the company has elected to withdraw previously communicated financial guidance for the third quarter and full-year 2021.

Source: PPG

YOUR SUPPORT IS CRITICAL TO KEEP PCE ALIVE

$3.00

Note to readers:

  • Please follow us on LinkedIn ,Twitter and YouTube and subscribe to our website and receive notifications of new posts by email.
  • Please click the share buttons below and make a comment.

Explore further

Explore further

Explore further

Explore further

Explore further

Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SUBSCRIBE TO OUR NEWSLETTER

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Paints and Coatings Expert will use the information you provide on this form to be in touch with you and to provide updates and marketing.
%d bloggers like this: