While the restructuring shift should protect profitability despite
higher commodity costs, its primary purpose is to free up cash to invest in growth.
Oak Brook, Illinois - based McDonald's, the world's biggest restaurant chain, raised U.S. menu prices 1 percent in March to help offset
higher commodity costs, Chief Financial Officer Peter Bensen said during an April 21 conference call.
* MONDELEZ - QTRLY ADJUSTED GROSS PROFIT MARGIN WAS 39.4 PERCENT, DOWN 110 BASIS POINTS, DRIVEN BY UNFAVORABLE MIX,
HIGHER COMMODITY COSTS & FREIGHT INFLATION Source text for Eikon: Further company coverage:
Food makers such as Kraft and Mondelez have reported soft volume as they've boosted the prices of their products to help offset
the higher commodity costs.
The household products maker also saw revenue beat estimates, but did see its profit margins impacted by
higher commodity costs.
HERERA: And
higher commodity cost could ripple through the stock market and the economy over the next week and a half or so.
Ford, the US's third - biggest automaker, is already struggling with
high commodity costs.
Not exact matches
A rally in oil and other
commodity prices have raised fears about
higher raw material
costs.
The streamers thus have their pick of low -
cost,
high - grade projects and can drive a hard bargain, setting themselves up for strong earnings growth if and when
commodity prices rise.
While fluctuations in the global price of coffee on the
commodity markets led industry behemoth Starbucks to boost its per - cup price tag last month, a growing share of consumer dollars are going to
higher -
cost specialty or craft coffee.
Packaged food companies, such as Conagra Brands Inc and General Mills Inc, have flagged
higher transportation
costs and rising
commodities prices in recent months.
The main topic was
commodity inflation around
higher metal prices (aluminum and steel) and
higher oil prices, which translated into
higher packaging
costs for many companies, but it also included wage concerns.
There's a familiar pattern in the company's history: keep
high - stakes R&D in Toronto; punt lower margin
commodity business to sites where labour
costs are lower (Celestica operates 20 facilities in 14 countries including Mexico, Taiwan and Malaysia).
Wohlers explained 3D - printed items
cost an average of $ 4 a cubic inch, which means it's only
cost effective to 3D print
commodities that are produced in low volumes with
high markups — such as airplane parts or hip replacements.
-- it will face continued margin pressures «due to
higher labor content in certain areas of manufacturing where we have temporarily dialed back automation, as well as
higher material
costs from recently imposed tariffs,
commodity price increases and a weaker US dollar.»
Others expect that gradually firming demand will allow them to pass on some
cost increases, such as
higher commodity prices, to their customers.
Energy and materials stocks will push
higher as
commodity costs rise.
What's really killing earnings and standing in the way of developing new coal reserves are plunging
commodity prices that have left many producers stranded with
high cost structures that are no longer commercially viable.
Rival chocolate maker Hershey Co (HSY.N) last week blamed
higher commodity and freight
costs for a cut in its full - year sales forecast.
Pricing increased 3.7 percentage points, despite deflation in key
commodities, due to significant pricing to offset
higher input
costs in local currency.
After the analyst asked a question about whether the company could reach its 25 - per - cent gross margin target on the Model 3, chief financial officer Deepak Ahuja said recently imposed tariffs, more expensive
commodities and
higher labour
costs factored into the company's guidance.
In textbook examples,
commodities are usually sold for their marginal
cost of production, though in the real world the price may be
higher due to tariffs and other trade barriers.
Important near - term influences on prices will be the significant increases in production
costs that have occurred recently, arising from
higher fuel prices, increases in a range of other
commodity prices and the effect of the lower exchange rate on prices of imported inputs.
Hershey reported Thursday that
higher shipping and
commodities costs will shave off 1.25 % on its margins compared to last year.
May 3 - Rising
costs start to squeeze American businesse CNN Money May 3 - Home Prices Jump Again And «$ 3 Gas Is Coming» Dollar Collapse May 3 - Gold price claws its way
higher on Fed meeting and geopolitics Gold - Eagle May 2 - Q&A on SS Central America Gold Coins CoinWeek May 2 - Goldman says case for owning
commodities has «rarely been stronger» than it is now CNBC May 2 - Gold, Silver See Corrective Bounces Ahead Of FOMC Statement Kitco May 1 - Gold Eagle Sales Still Faltering While Mining Output Collapses — Perfect Storm Daily Coin May 1 - Relentless USD Rally Is Precious Metal Kryptonite GoldSeek Apr 30 - Venezuelan Inflation: The Demise of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset,
Commodity, Currency Or Collectible?
We also expect valuations to improve after the release of better - than - expected first quarter results from the sector leaders, on the back of
higher commodity prices without
cost inflation.
The fun, however, lies in the exploration companies, or in the companies that have a
higher -
cost resource in need of a
commodity price rally in order to render the resource «economic.»
Caterpillar Inc, the world's largest heavy equipment maker; 3M Co; and Stanley Black & Decker Inc are among companies that have pointed to
higher material,
commodity or other
costs in their reports to investors.
Now, they «re mainly talking about
commodity inflation around metal prices like aluminum and steel and oil prices, which translates to the
higher packaging
costs for many companies.
Charges add up while the
cost of living constantly rises, from
higher bank fees and insurance premiums to rising property taxes and
commodity and food prices.
Headline consumer price inflation across the region continues to be affected by the
high cost of crude oil and other
commodities.
The decline pushed profitability down by 0.7 percentage points to 35.9 % of sales since Kimberly Clark couldn't use
higher prices to offset rising
commodity costs.
Merricks Capital, which specialises in soft
commodities, helped to create derivative contracts with the major US hamburger companies to allow them to hedge the
cost of Australian beef while allowing them to profit from anomalies in global beef prices, such as the perceived
high price of Australian cattle.
Despite
high volumes, Australia's historically
commodity - based markets have low margins, with
high labour
costs decreasing competitiveness and significant competition in saturated markets driving down prices.
The decision reflects the increasing pressure on dairy processors to look to new markets and
higher value production to offset increasing
commodity costs.
Steep hikes in world prices for black vanilla could mean
higher production
costs for premium ice cream makers, according to
commodity analyst Mintec, which is advising ice cream producers to book their contracts for the spice now.
Nevertheless, in 2011 financial year Fonterra expects
higher milk
costs to affect earnings within its
commodities and ingredients businesses.
Price premiums for organic
commodities are 20 percent lower in countries with a
high involvement of general food retailers (e.g. Austria, Denmark, Switzerland), mainly due to lower distribution
costs.
Some of my friends in the media vigorously attack Nigerian journalists and statesmen who openly commend the Ghanaian administration for the strides made so far.Chief Dele Momodu recently said this about of our President «People don't know why I love Ghana so much and the current leader in particular.He is modest, not flamboyant as we see of other leaders», on BBC few days ago Nigerians interviewed used the positive signs in Ghana as appropriate yardstick to attack their government, a documentary going round in the international media exposes the lackadaisical performance of the Nigerian government using the positive performance recorded under John Mahama.The latest BBC reports on the Nigerian economy captures that the
cost of living in Nigeria continue to soar and in June, accelerated to 16.5 % the
highest rate in almost 11 years.Gari which is supposed to be the cheapest
commodity in the country can not be afforded by the poor.
The Federal government has explained to Nigerians why the
cost of
commodities are on the
higher across the country.
«Because of our
high cost structures here starting with land — let alone utility
costs, taxes and everything else — the Town of Southold's agriculture can't afford just to be a raw crop
commodity agricultural industry anymore,» Mr. Baiz said.
The University of North Dakota Energy & Environmental Research Center (EERC) is working with FuelCell Energy, Inc., an integrated stationary fuel cell manufacturer, to develop a durable, low -
cost, and
high - performance electrochemical cell to convert natural gas and other methane - rich gas into methanol, a major chemical
commodity with worldwide applications in... Read more →
Most municipal curbside recycling programs do not accept plastic bags of any type, and
high separation and processing
costs often limit their profitability in the recycled
commodity market.
The Huawei Ascend P1 S looks to be the first handset in a bid for Huawei to move beyond low -
cost,
commodity smartphones with a
high - resolution OLED display, dual - core processor and Google Android 4.0.
As
commodity prices move down, the recent acquirers and developers of
high -
cost capacity fare the worst.
In practice, they roll into the futures contract with the lowest implied roll
cost when a
commodity trades in contango, and roll into the futures contract with the
highest implied roll benefit when a
commodity trades in backwardation.»
«When a rise in the price of the
commodity occurs, there will ordinarily be a larger advance, percentagewise, in the shares of
high -
cost producers than in the shares of low -
cost producers.
The energy and materials sectors have been the sore spot for the
high yield market, given the anxiety over credit quality, as current low prices in oil and
commodities, along with a Fed increase in rates, may be a cause for concern for future earnings and the
cost of capital.
This can be due to
high supply and / or low demand in the spot market or aided by low storage
costs associated with the
commodity.
Furthermore most DP (used in Rayon and other synthetic materials) is consumed in China which has their own
high -
cost mills and is looking into «dumping» by non Chinese manufacturers (perhaps as a way to support employment at home rather than enjoy lower
commodity prices).