US coating producer PPG has cut its sales forecast for the third quarter of 2021, citing the ongoing supply chain disruptions. The company expects Q3 sales volume to be $225 million-275 million lower than its initial projection. PPG said coating demand from the automotive industry fell as carmakers cut production due to a global semiconductor chip shortage. It also said that Hurricane Ida could result in additional supply chain effects.
The company also said that Q3 raw material costs would be $60 million-70 million higher than its original forecast. However, PPG expects strong sales growth into 2022 when supply conditions normalise as many of its buyers have low inventories. The company also plans to increase overall selling prices by about 5% in Q3.
