UPS Lowers Q2 Estimate; Dow Chemical's 2nd 25% Price Hike
UPS, reduced this quarter's profit forecast on rising fuel costs and a cooling U.S. economy.
The worlds largest package delivery company noted that a slowing U.S. economy has impacted package volume and curbed sales of its premium air-delivery services.
Dow Chemical, will raise prices as much as 25% in July, the largest increase in company history and
the second in two months, to recoup surging energy and raw-material costs. (Read here for last months insightful comments by the CEO.)
The largest US chemical marker will also add shipping (fuel) surcharges in North America and close US and European styrofoam plants due to weak demand.
A freight surcharge of $300 per truck and $600 per shipment by rail will be added to all orders.
CEO Andrew Liveris: "The price increases we announced on May 28 helped, but they were not enough to fully cover the additional costs we are now facing.
The staggering increase in our costs over the past few months have forced us to take these further measures in order to restore our margins.
I'm convinced that the China consumption, everything we're seeing out there, the long-term trendline is we're seeing oil going to its new plateau.
I believe we're heading north from here, not south. By taking down assets, by raising prices and getting as much of it to stick as we can,
we're fundamentally moving ourselves so we cannot be swallowed by this massive surge."
The worlds largest package delivery company noted that a slowing U.S. economy has impacted package volume and curbed sales of its premium air-delivery services.
Dow Chemical, will raise prices as much as 25% in July, the largest increase in company history and
the second in two months, to recoup surging energy and raw-material costs. (Read here for last months insightful comments by the CEO.)
The largest US chemical marker will also add shipping (fuel) surcharges in North America and close US and European styrofoam plants due to weak demand.
A freight surcharge of $300 per truck and $600 per shipment by rail will be added to all orders.
CEO Andrew Liveris: "The price increases we announced on May 28 helped, but they were not enough to fully cover the additional costs we are now facing.
The staggering increase in our costs over the past few months have forced us to take these further measures in order to restore our margins.
I'm convinced that the China consumption, everything we're seeing out there, the long-term trendline is we're seeing oil going to its new plateau.
I believe we're heading north from here, not south. By taking down assets, by raising prices and getting as much of it to stick as we can,
we're fundamentally moving ourselves so we cannot be swallowed by this massive surge."
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