Paints maker PPG warns that Q3 sales will lag guidance by $225 million to $275 million due to shortages, higher costs

Shares of paint maker PPG Industries Inc. slid 4% in premarket trade Tuesday, after the company said it expects third-quarter sales volumes to be lower by $225 million to $275 million from guidance issued at the start of the quarter, due to disruptions in commodity supply, chip shortages and continued logistics and transportation challenges in many regions, including the U.S., Europe and China. "In addition, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million," the company said in a statement. The supply-chain disruptions have deteriorated since the company's earnings announcement on July 19 and it is now withdrawing its third-quarter and full-year guidance. However, aggregate economic demand remains robust, it said, and PPG expects strong sales growth heading into 2022 once conditions normalize. Shares have gained 8% in the year to date, while the S&P 500 has gained 20.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Paints maker PPG warns that Q3 sales will lag guidance by $225 million to $275 million due to shortages, higher costs
Shares of paint maker PPG Industries Inc. slid 4% in premarket trade Tuesday, after the company said it expects third-quarter sales volumes to be lower by $225 million to $275 million from guidance issued at the start of the quarter, due to disruptions in commodity supply, chip shortages and continued logistics and transportation challenges in many regions, including the U.S., Europe and China. "In addition, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million," the company said in a statement. The supply-chain disruptions have deteriorated since the company's earnings announcement on July 19 and it is now withdrawing its third-quarter and full-year guidance. However, aggregate economic demand remains robust, it said, and PPG expects strong sales growth heading into 2022 once conditions normalize. Shares have gained 8% in the year to date, while the S&P 500 has gained 20.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.