Diapers to yogurt, global firms face higher costs amid supply-chain woes

Oct 19 (Reuters) – Results from companies Procter & Gamble Co (PG.N) and Danone SA (DANO.PA) as well as phone maker Ericsson (ERICb.ST) on Tuesday show higher costs and supply chain disruptions, signaling more margin pressure for global firms and higher prices for shoppers.

Panic-buying at the start of the pandemic led to mass shortages of everything from toilet paper to packaged foods. Global lockdowns and labor shortages crimped supply chain movement and caused lasting log-jams at ports from China to California.

Many companies have leaned on price increases to offset higher prices for materials needed to make and ship essential necessities like diapers and bottled water. Executives and analysts have said price increases will linger into next year.

Procter & Gamble, which noted its first-quarter operating margins were squeezed, now expects a hit of about $2.3 billion in expenses this fiscal year, compared with a prior forecast of about $1.9 billion.

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Source: Reuters