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More than a third of S & P 500 earnings report fares



For many companies, higher input costs are passed on to dealers or customers. Some just take the costs down to the bottom line or try to cut costs elsewhere. Often it's a mix of both.

Costco, for example, announced on its own that it is introducing a number of strategies to cope with rising costs.

We accelerate deliveries before tariffs come into force "There's the limited ability to do that – everyone tries," said CFO Richard Galanti. "Working with Suppliers to see what can be done to reduce and / or reduce costs and, in some cases, reduce the order commitments for certain affected products."

Others, such as Gregory Hayes, CEO of United Technologies, said higher costs are almost always passed on to consumers.

"I would expect prices to rise again next year if those rates persist," Hayes said on Tuesday's United Win. "Ultimately, these tariffs are passed on to the consumer in one form or another ̵

1; it's just a tax to the consumer to think about in a different way."

A growing number of companies are using tariffs to help select industries or push trading partners to the negotiating table using the Trump administration

Some, like PPG Industries, fear that higher input costs could reduce their profits, while steel giant Nucor sees taxes as a possibility, the playing field for victims of cheaper foreign alternatives.

Here's what some executive bodies say:

WW Grainger ( GWW )

"In terms of tariffs, we have used a cross-functional task force to gain a better understanding of Meet the impact on tariffs and take mitigating action Team meets on a daily basis Some of its actions include the validation of tariff increases, cooperation with suppliers to minimize the impact on costs, including the identification of alternative offers and the evaluation of Price action while ensuring that our prices remain market-based The product sourced directly from China accounts for approximately 20% of the cost of sales of the US segment. "- Thomas Okray, Chief Financial Officer

Caterpillar ( CAT ) [19659012] "Overall, material costs increased by about 2% due to higher steel prices and the impact of tariffs." Freight costs are wide Due to a variety of factors, including higher rates, less efficient cargoes and accelerated freight costs, we have increased production to meet increased demand, even though the mid-year price increase had only part of the impact of higher input costs and the tariffs were only $ 50 million more than the price realization. "- Andrew Bonfield, Chief Financial Officer

Harley-Davidson ( HOG )

" Customs costs rose $ 9.9 million due to higher EU tariffs. During the quarter, some 60% of our shipments were transacted with the EU. Www.eu2006.gv.at/de/News/Speeches_I…05annan.html Our expectations for the impact of the recently adopted tariff include additional costs of around 15 to 20 million US dollars for steel and aluminum and about 25 million for EU tariffs The United States has raised tariffs on certain products imported from China, and we believe that this will increase our costs for 2018 by about $ 3 million We now expect about $ 43 to $ 48 million in increased customs-related costs in 2018.

With the new China tariffs, we are looking for those annualized in the range of $ 10 to $ 12 million, both of us would try to mitigate these when we find out the production. "- John Olin, Chief Financial Officer

Nucor ( NUE )

" Our industry is also benefiting from the cumulative effects of years of successful trading that has led to anti-dumping and countervailing duties, as has the recently imposed section 232 customs duties, which collectively remove artificially cheap foreign imports from the market and create a level playing field.

As I mentioned earlier, tariffs have their intended effect because they have acted unfairly They send out the message that the United States Government is taking the rules of trade seriously, but they also have an important long-term effect: to provide tariffs leverage to bring other countries to the negotiating table fairer trade agreements for the US "- John Ferriola, Director General

Costco ( COST )

" There are many moving parts and it's extremely fluid, starting with the actions and reactions of US and Chinese governments. What measures are We are investigating and undertaking some short-term and some long-term, accelerated deliveries before the tariffs come into effect, acknowledge that there is a limited ability to do so. All are trying to see what happens in collaboration with suppliers can be done to reduce and / or absorb some of the costs and in some cases reduce the order obligations for certain affected articles

Alternative country procurement, certainly, but again, where possible and possible, it is a limited ability and it takes time advantage of lower prices for some US products because of the reverse, if you like, like pork, nuts and soybeans. "- Richard Galanti, Chief Financial Officer

Micron ( MU )

" We expect the gross margin to remain strong in the first quarter, albeit below the level of the fourth quarter is also impacted by the announced $ 10 billion customs tariff on Chinese imports of $ 200 billion, which will come into effect on September 24. We are working to gradually reduce the impact of these tariffs over the next three to four quarters

Obviously tariffs are likely to affect us in the order of 50 to 100 basis points [on gross margin]. "- David Zinsner, Chief Financial Officer

Hasbro ( HAS )

" We keep looking at the list and may work beyond that. We have markets that have tariffs now and the biggest one is Brazil and you've been around for a while, and it only adds to the price that adds to the import costs and that affects our consumers. So let's keep looking. We can not respond immediately, but we continue to look where we are making products. Currently about 25% of our product is made in the USA. We just continued what is being sold in the US and we will continue to try to move our product to other markets. "- Deborah Thomas, Chief Financial Officer

PPG Industries ( PPG ))

" The new tariffs are beginning to inflict some moderate costs on our raw materials. We expect currency translation to be detrimental Our fourth quarter revenues are expected to be between $ 50 million and $ 60 million in the fourth quarter, based on current rates. Specific to our businesses, total revenues are expected to be normal seasonal development will be sequentially lower. "- Michael McGarry, General Manager

AutoZone ( AZO )

" In the coming weeks, a larger number of tariffs will be introduced. These tariffs should be more significant In the short term, we expect to be able to maneuver ourselves through any changes and we continue to believe that these costs will ultimately be passed on as the whole industry would be equally affected.

If you stay or stay 25% For a long time, this will lead to significant inflation in our industry. And I'll tell you for long periods that marginal inflation is good in our business. And by the way, we see an accelerated wage increase in inflation. So we are not afraid of marginal inflation. What we do not want to see are shocks that shock the consumer. "- William Rhodes, Director General.

United Technologies (19659010) UTX )

" If you think about $ 0.15 headwind after $ 0.05 headwind this year, we could more than make up for it I would expect that prices will continue to rise next year if these tariffs persist. However, there is a limit in terms of pricing guess, three price increases this year in the US resi business , Ultimately, these tariffs, everything is passed on to the consumer in one form or another. It's just a tax on the consumer in a different way to think about it. – Gregory Hayes, Chief Executive Officer


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