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
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