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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (11270)	4/3/2004 12:59:42 PM
From: ild	Read Replies (1) \| Respond to of 110194

This one is my favorite idorfman.com

To: yard_man who wrote (11270)	4/4/2004 9:27:51 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

Reuters Appliance Makers Offsetting Steel Costs Saturday April 3, 6:36 pm ET By Karen Jacobs CHICAGO (Reuters) - Appliance makers are increasing prices and taking other steps to offset the rising costs of steel and other raw materials. Some companies showing off their products at a weekend kitchen and bath show in Chicago said on Saturday they have announced price increases on certain appliances and are using replacement materials to recoup higher commodity costs and protect profit margins. Whirlpool Corp. (NYSE:WHR - News) announced a price increase on some stainless steel products about two weeks ago, said spokesman Stephen Duthie. "We're paying more for stainless steel and we're passing some of those costs on to consumers," he said. Steel costs have surged at least 30 percent since the beginning of this year on strong global demand. Manufacturers also face rising costs of other metals such as nickel and higher freight costs due to increasing fuel prices. Maytag (NYSE:MYG - News) declined to comment on its pricing, but said it used alternative materials and increased global sourcing of products to cope with higher costs of nickel, plastics and freight. "We're trying to leave no stone unturned in ways to offset those cost increases," said Bill Beer, president of Maytag's major appliance division. Bruce Ballard, merchandising vice president for appliances at Lowe's Cos. (NYSE:LOW - News), the second-biggest U.S. appliance seller, cited mixed messages from manufacturers, saying some were seeking price increases while others are not. "Until we see some consistency and sustained pressure out there on the commodity steel, it's likely that we'll continue to position our product just as we are today, not having (the consumer) pay a price for the pressure that's out there," Ballard said. Ballard does not think increased commodity costs are likely to hurt overall appliance industry sales. "We see some abating of this (cost) pressure coming in the middle and latter part of this year," he said. Stephanie Kivett Ohnegian, director of home appliances at the U.S. arm of Korea's Samsung Electronics (005930.K), said her company has a no-price increase policy but was offsetting higher commodity costs in other ways. For instance, Samsung discontinued some of its small microwaves because making money on them is hard with materials costs rising. "It's a challenge for Samsung to maintain a commodity business while also making a profit," Ohnegian said.