PPG 3rd Quarter Earnings Report slide image

PPG 3rd Quarter Earnings Report

Supply chain and manufacturing disruption trends LO 5 4Q 21 2Q 22 3Q 22 Raw material availability Severe shortages Logistics Severe shortages (Truck availability) Logistics (Port congestion) Severe backlog U.S. labor availability Heightened shortages Ongoing improvement Minimal improvement China impacted; other regions improved Modest improvement Continued improvement Continued improvement Continued improvement Modest improvement RM Inflation 2021 - Q3 2022 vs Prior Year Cumulative 1.0B YTD '22 0.9B FY '21 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 U.S. · • $1.9B of cumulative in past 7 quarters COVID labor High level Minimal impact Minimal impact absenteeism China COVID lockdowns Dual control impacts mfg. Disruptions into early June 2-year stacked raw material inflation ~40% Supply availability continues to improve Focus on inventory reduction New restrictions Q3 results vs. original Q3 guidance: • U.S. raw material availability in aggregate improved New force majeures impacted certain raw materials China restrictions worse than expected Q4 outlook: Further improvement in raw material availability China operations: additional risk for more restrictions PPG
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