PPG Provides Sales Update Amid Supply Disruptions and Customer Parts Shortages
PITTSBURGH — PPG recently announced that it expects sales volumes in the third quarter of 2021 will be lower by $225 million to $275 million, compared to what the company anticipated at the start of the third quarter. PPG reports that its 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 United States, Europe and China. In addition, the company reports that 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.