3M warns on the impact of inflation and global chip shortage
Company cuts view
Industrial giant 3M now sees 2021 fiscal year auto production down 6% due to the impact of the global chip shortage. Previously the company saw it having a 3% impact.
Moreover, the company said that inflation is higher than they thought it would be in Q3. On the supply chain, they said that raw materials are the largest issue, moreso that intermediate goods.
Shares of the company are falling but this is an issue for so many companies and the broader economy.