PPG - PPG Industries plunges as supply disruptions cost inflation drive Q2 miss

PPG Industries (PPG) -5.8% post-market after reporting a wide Q2 earnings miss, citing "pervasive raw material supply disruptions" that drove Y/Y cost inflation of a "mid-to-high-teen percentage."Compared to the year-ago quarter, adjusted EPS nearly doubled to $1.94 and net sales jumped 44% to $4.36B, in line with analyst consensus estimate.PPG says Q2 sales volumes rose 24% Y/Y, supported by strong demand recovery across many end-use markets, and selling prices increased 3.5%, but "volume growth was significantly tempered due to various supply and component disruptions," which the company expects will continue through the end of Q3.Despite strong underlying end-use market demand, PPG says various coatings raw material shortages and logistics problems reduced its ability to fully supply the existing order book within the quarter.As a result, PPG expects aggregate input and logistics costs will push higher in Q3 compared to Q2, but further selling price increases should "fully offset raw material cost

For further details see:

PPG Industries plunges as supply disruptions, cost inflation drive Q2 miss