Toronto, Ontario — Automotive paint manufacturer PPG reported on Tuesday that the company expects third quarter sales volumes to drop between US$225 million to US$275 million, compared to the coatings company’s predictions at the start of the third quarter.
PPG attributes this projected drop in sales to ongoing challenges in the manufacturing supply chain, such as the global microchip shortage and continued delays at international borders.
As well, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million.
While demand remains high and inventory is sparse, PPG expects strong sales growth into 2022 if supply conditions manage to normalize.
PPG has elected to withdraw previously communicated financial guidance for the third quarter and full-year 2021.