PITTSBURGH, September 07, 2021– (COMMERCIAL THREAD) – PPG (NYSE: PPG) introduced at present that it expects gross sales volumes within the third quarter of 2021 to be $ 225 million decrease to $ 275 million, in comparison with the corporate anticipated at first of the third quarter. PPG’s gross sales volumes are impacted by rising disruptions in uncooked materials provides; additional cuts in buyer manufacturing on account of some shortages of elements similar to semiconductor chips; and protracted logistics and transportation challenges in lots of areas, together with america, Europe and China. Moreover, commodity inflation for the third quarter tends to be greater than beforehand reported by round $ 60 million to $ 70 million.
Coating product provide disruptions have worsened additional for the reason that firm’s earnings announcement on July 19, on account of a number of extra drive majeure claims and decrease materials allocations from some suppliers. The corporate additionally continues to evaluate the complete influence of Hurricane Ida, which might embody extra results on the availability chain.
The corporate mentioned total international financial demand stays sturdy and inventories in most of the firm’s end-use channels are at very low ranges. When provide situations normalize, the corporate continues to anticipate sturdy gross sales development via 2022. As well as, the corporate has indicated that it continues to make measurable progress by implementing will increase in promoting worth to assist offset excessive uncooked materials prices, and search additional will increase. General worth will increase for the third quarter are estimated at round 5% with comparable contributions from each working segments.
Based mostly on the uncertainty created by these persevering with and evolving disruptions, the corporate has chosen to withdraw the monetary forecasts beforehand communicated for the third quarter and the 12 months 2021.
PPG: WE PROTECT AND EMBELLISH THE WORLD ™
At PPG (NYSE: PPG), we work day-after-day to develop and ship the paints, coatings and supplies that our clients have trusted for over 135 years. By dedication and creativity, we remedy our shoppers’ greatest challenges, working intently collectively to search out the best path ahead. Headquartered in Pittsburgh, we function and innovate in additional than 75 international locations and achieved internet gross sales of $ 13.8 billion in 2020. We serve shoppers within the building, client merchandise, retail, and building industries. business and transport and spare elements markets. To study extra, go to www.ppg.com.
Warning relating to forward-looking statements
This press launch incorporates forward-looking statements inside the that means of Part 21E of the Securities Alternate Act of 1934, as amended, and Part 27A of the Securities Act of 1933, as amended and may be recognized by their use of phrases similar to “plans,” “expects”, “will”, “anticipates”, “believes”, “intends”, “plans”, “estimates” or different phrases of comparable that means Ahead-looking statements contained on this doc embody statements regarding anticipated third quarter gross sales volumes, attainable extra provide disruptions, fluctuations in prices and uncooked materials availability, skill to attain will increase costs, enterprise demand tendencies and anticipated future gross sales development. These statements are primarily based on info accessible to PPG as of the date hereof, and precise outcomes might differ. considerably from these indicated or implied, on account of market situations, in addition to the dangers and uncertainties related to the actions of the Firm. Accordingly, many components might trigger precise outcomes to vary materially from the forward-looking statements contained on this doc. These components embody statements regarding the anticipated results on our enterprise from the COVID-19 pandemic, together with the tempo of restoration from the pandemic, international financial situations, elevated worth and product competitors from rivals. overseas and home, the flexibility to recuperate margins, buyer stock ranges, the flexibility to keep up favorable relationships and preparations with suppliers, the timing of reaching anticipated value financial savings via restructuring and different initiatives, the flexibility to determine extra financial savings alternatives, the difficulties of integrating the acquired corporations and the achievement of anticipated synergies, financial and political situations in worldwide markets, the flexibility to penetrate current overseas and home markets, in growth and rising, alternate charges and fluctuations in these charges, fluctuations in tax charges, the influence of future laws, the influence of environmental laws, sudden enterprise disruptions, the unpredictable capability of current and future litigation, together with asbestos-related litigation, and authorities investigations . Nevertheless, it isn’t attainable to foretell or determine all of those components. Due to this fact, though the listing of things offered right here, in our 2020 Annual Report on Type 10-Okay and our June 30, 2021 Quarterly Report on Type 10-Q, and in our different paperwork filed with the SEC, are thought of consultant, no such listing must be taken as an entire assertion of all potential dangers and uncertainties. Components not listed could current extra materials boundaries to creating forward-looking statements. The results of fabric variations in outcomes from these anticipated in forward-looking statements might embody, amongst others, decreased gross sales or income, enterprise interruption, operational issues, monetary losses, authorized legal responsibility to 3rd events and comparable dangers, every of which might have a fabric antagonistic impact on PPG’s consolidated monetary place, outcomes of operations or liquidity.
All info contained on this press launch is legitimate solely as of September 7, 2021 and any distribution of this press launch after this date just isn’t supposed and won’t be construed as an replace or affirmation of such info. PPG Industries makes no dedication to replace forward-looking statements, besides as relevant regulation requires in any other case.
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