New York (AP) – Companies of a wide range of industries find it difficult to assess the impact of prices due to constant uncertainty as to whether taxes will be imposed or reported, sometimes daily or weekly. Certain prices remain in place against the main American trade partners, but others have been postponed to give nations time to negotiate.
Consequently, companies have given somewhat trembling financial forecasts during their last series of profits.
Here is how several large companies treat pricing confusion:
Kimber
Irving, Texas, the company manufactures Hugies, Kleenex and other personal care products and household staples. It expects the prices to add $ 300 million in costs and warned against stable profits for the year.
“The current environment will now mean higher costs in our global supply chain compared to our expectations at the start of the year,” CEO Michael Hsu said in a statement on Tuesday after the company’s latest results.
About 20% of Kimberly-Clark American costs are exposed at prices. Most of its impact on the estimated cost of $ 300 million is driven by American prices against China. The company strives to move part of its supply chain to mitigate costs.
3m
William Brown, CEO of 3m Co., the manufacturer of adhesives, coatings, adhesive tape and post-it, admitted that “the prices were going to be a headwind this year”.
The company remained at profit forecasts from $ 7.60 to $ 7.90 per share, excluding the impact of prices. But 3M included a slide in his presentation for analysts with “sensitivity to pricing impact”, which, according to him, could reduce the profits from 20 cents to 40 cents per share, after taking into account the measures that will somewhat reduce the price of prices. These steps could include cost reductions and “selective price increases where this”.
Brown also declared during a conference call that the company is considering alternative production sites with different countries of origin to try to minimize the price impact.
RTX
Most of the industrial base and the RTX supply chain is located inside the United States, but prices are still ready to harm the defense company behind the missile and radar systems.
RTX provides up to $ 800 million in impact on the costs of prices imposed in Canada, Mexico, China and other countries. He did not include the potential impact in his procurement forecasts.
“In general, the aerospace and defense sector worked in a rights franchise environment,” said President Christopher Calio during a conference call with analysts. “And this has contributed to the industry to maintain one of the largest trade surpluses in the American manufacturing industries for decades.”
