PITTSBURGH – (COMMERCIAL THREAD) – PPG (NYSE: PPG) introduced at the moment 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 attributable to some shortages of elements equivalent to semiconductor chips; and chronic logistics and transportation challenges in lots of areas, together with the USA, Europe and China. Moreover, commodity inflation for the third quarter tends to be increased 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, attributable to a number of extra drive majeure claims and decrease materials allocations from some suppliers. The corporate additionally continues to evaluate the complete impression of Hurricane Ida, which might embody extra results on the provision 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 progress by 2022. As well as, the corporate has indicated that it continues to make measurable progress by implementing will increase in promoting value to assist offset excessive uncooked materials prices, and search additional will increase. Total value will increase for the third quarter are estimated at round 5% with related contributions from each working segments.
Primarily based 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.
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At PPG (NYSE: PPG), we work every single day to develop and ship the paints, coatings and supplies that our prospects have trusted for over 135 years. By means of dedication and creativity, we remedy our purchasers’ largest challenges, working intently collectively to seek out the appropriate path ahead. Headquartered in Pittsburgh, we function and innovate in additional than 75 nations and achieved web gross sales of $ 13.8 billion in 2020. We serve purchasers within the development, client merchandise, retail, and development industries. trade and transport and spare elements markets. To study extra, go to www.ppg.com.
Warning concerning forward-looking statements
This press launch incorporates forward-looking statements throughout the that means of Part 21E of the Securities Trade Act of 1934, as amended, and Part 27A of the Securities Act of 1933, as amended and will be recognized by their use of phrases equivalent 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 referring to anticipated third quarter gross sales volumes, potential extra provide disruptions, fluctuations in prices and uncooked materials availability, potential to realize will increase costs, enterprise demand tendencies and anticipated future gross sales progress. These statements are based mostly on info accessible to PPG as of the date hereof, and precise outcomes might differ. considerably from these indicated or implied, attributable to 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 referring to the anticipated results on our enterprise from the COVID-19 pandemic, together with the tempo of restoration from the pandemic, international financial situations, elevated value and product competitors from rivals. international and home, the power to recuperate margins, buyer stock ranges, the power to take care of favorable relationships and preparations with suppliers, the timing of attaining anticipated price financial savings by restructuring and different initiatives, the power to establish extra financial savings alternatives, the difficulties of integrating the acquired firms and the achievement of anticipated synergies, financial and political situations in worldwide markets, the power to penetrate present international and home markets, in improvement and rising, alternate charges and fluctuations in these charges, fluctuations in tax charges, the impression of future laws, the impression of environmental rules, sudden enterprise disruptions, the unpredictable capability of present and future litigation, together with asbestos-related litigation, and authorities investigations . Nevertheless, it’s not potential to foretell or establish all of those components. Due to this fact, though the checklist of things introduced 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-about consultant, no such checklist needs to be taken as a whole assertion of all potential dangers and uncertainties. Components not listed could current extra materials obstacles 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 related dangers, every of which might have a fabric opposed 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 isn’t meant 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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