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

Panic buying at the start of the pandemic led to massive shortages of everything from toilet paper to packaged food. Global lockdowns and labor shortages have hampered supply chain movements and caused lasting congestion at ports from China to California.

Many companies have relied on price increases to offset higher prices for materials needed to make and ship basic necessities such as diapers and bottled water. Executives and analysts have said the price increases will continue into the next year.

Procter & Gamble, which noted that its first-quarter operating margins have been squeezed, now expects a hit of around $ 2.3 billion in expenses this fiscal year, compared to a previous forecast of around $ 1. $ 9 billion.

The company blames rising raw material costs as well as diesel and energy prices, and said it did not expect these problems to abate anytime soon. Read more

Danone, which sells Activa yogurt and Evian bottled water, warned of mounting inflationary pressures next year after maintaining its outlook for 2021 on Tuesday, pledging its margins to exploitation are protected by productivity gains and price increases. Read more

“Like just about everyone in the industry and beyond, we are seeing inflationary pressures at all levels. What started as an increase in inflation on materials costs has evolved into widespread constraints affecting our supply chain in many parts of the world, ”said Juergen Esser, Chief Financial Officer of Danone.

Sweden’s Ericsson (ERICb.ST) told investors on Tuesday that issues in the global supply chain would remain a major obstacle.

“At the end of the third quarter, we experienced some impact on sales due to supply chain disruptions, and such issues will continue to pose a risk,” Managing Director Börje Ekholm said in a statement.

The company has been unable to deliver some hardware to its customers due to a shortage of chips at vendors coupled with logistics issues, he said. Read more

Electric vehicle maker Tesla Inc (TSLA.O) is due to release its results on Wednesday. Investors are watching the automaker’s margins closely. CEO Elon Musk previously said the company is spending a lot to fly auto parts around the world to meet demand, while working to cut costs at its factory in China by sourcing more parts. local. Read more

Some investors want to see how these costs add up.

“I think there’s probably a headwind for margins. They pay more for components,” said Gene Munster, managing partner of venture capital firm Loup Ventures, an investor in Tesla. “I think it would be a huge advantage if they could increase the gross margin of the automobile in this environment.”

Written by Bernard Orr and Anna Driver; Editing by Nick Zieminski

Our standards: Thomson Reuters Trust Principles.