CLX » Topics » Price increases in raw materials, energy, transportation and other necessary supplies or services could harm the Companys profits.

This excerpt taken from the CLX 10-K filed Aug 25, 2009.

Price increases in raw materials, energy, transportation and other necessary supplies or services could harm the Company’s profits.

Increases in the cost of raw materials, including resin, chlor-alkali, linerboard, soybean oil, solvent, natural oils, corrugate and other chemicals and agricultural commodities, or increases in the cost of energy, transportation and other necessary services, including the cost of diesel, may harm the Company’s profits and operating results. If price increases for any of the primary raw materials or other necessary supplies or services occur and the Company is not able to increase the prices of its products or achieve cost savings to offset such price increases, its profits and operating results will be harmed. In addition, if the Company increases the prices of its products in response to increases in the cost of commodities, and the commodity costs decline, the Company may not be able to sustain its price increases over time. Sustained price increases may lead to declines in volume, and while the Company seeks to project tradeoffs between price increases and volume, its projections may not accurately predict the volume impact of price increases.

For further information regarding the impact of changes in commodity prices, see “Quantitative and Qualitative Disclosure about Market Risk” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 16 through 17 of Exhibit 99.1 hereto, incorporated herein by reference.

This excerpt taken from the CLX 10-K filed Aug 19, 2008.

Price increases in raw materials, energy, transportation and other necessary supplies or services could harm the Company’s profits.

During fiscal year 2008, the Company experienced commodity and energy cost increases of approximately $137 million, and the Company expects greater increases in these costs in fiscal year 2009 by an estimated $180 million to $200 million. Increases in the cost of raw materials including resin, chlor-alkali, linerboard, soybean oil, solvent, natural oils and other chemicals and agricultural commodities, or increases in the cost of energy, transportation and other necessary services, including the cost of diesel, may harm the Company’s profits and operating results. If price increases for any of the primary raw materials or other necessary supplies or services occur and the Company is not able to increase the prices of its products or achieve cost savings to offset such price increases, its profits and operating results will be harmed. In addition, if the Company increases the prices of its products in response to increases in the cost of commodities, and the commodity costs decline, the Company may not be able to sustain its price increases over time.

For further information regarding the impact of changes in commodity prices, see “Quantitative and Qualitative Disclosure about Market Risk” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on page 16 of Exhibit 99.1 hereto, incorporated herein by reference.

EXCERPTS ON THIS PAGE:

10-K
Aug 25, 2009
10-K
Aug 19, 2008
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