PPG Industries (NYSE:PPG) on Friday stated a second wave of Covid-19 probably will have an effect on its enterprise in China after an outbreak final month hindered operations.
“Our base case is that there will be, to some degree, a second wave after Chinese New Year of infections,” Tim Knavish, CEO of PPG, stated in a usually scheduled name with analysts. “Beyond that, we’re expecting modest growth for the year, low single digits.”
Disruptions from the pandemic in China magnified a decline within the quarterly revenue of the maker of paints, coatings and specialty supplies. Company administration plans a fast restoration from another wave of coronavirus infections and higher outcomes for 2023.
Before staff began calling in sick over the past bout with Covid-19, PPG’s 19 factories in China had nearly no worker absenteeism. Operations returned to regular about three weeks after the surge in circumstances, when greater than half of staff didn’t go to work.
Workers who go to households in distant places for brand spanking new 12 months celebrations and return could drive a bounce in infections.
“We do believe there will be a short but acute second wave, so that’s why we’re a bit more cautious,” Knavish stated.