U.S. Nutraceuticals - The In Box - raw materials manager Daniel Vickers appointed - Brief Article
U.S. Nutraceuticals, Boone, N.C., has named Daniel Vickers raw materials manager for its botanics division.
The Synergy Company added several key employees: Steven Lattey as director of Raw Materials for Synergy Production Laboratories
The Synergy Company added several key employees: Steven Lattey as director of Raw Materials for Synergy Production Laboratories, Tim Harkwright as director of Quality Assurance and Ellen Schuttas director of Marketing
Active in E-Commerce: BASF Conducts First Internet Auction for Raw Materials Purchasing
LUDWIGSHAFEN, Germany–(BUSINESS WIRE)–March 3, 2000
BASF, expanding its range of opportunities in purchasing raw materials, has held its first Internet auction based on the “reverse bidding” method to purchase several thousand metric tons of methanol. The on-line event, which was conducted by BASF’s Raw Materials Purchasing division, yielded substantial savings for the company.
“The use of virtual marketplaces and Internet auctions is an important part of our strategy for optimizing procurement,” said Wolfgang Moerike, President of BASF’s Raw Materials Purchasing division. “I believe that a large proportion of our business will soon be handled this way. Raw Materials Purchasing had informed seven methanol suppliers of its auction on the virtual trading floor of the Internet auctioneer “Portum.” The auction was held on Wednesday, March 1, between 9:30 a.m. and 1:45 p.m. Central European Time. The auction became very exciting during the final hour when five raw materials suppliers still remained and were undercutting one another’s bids at five-minute intervals. The bids eventually fell to approximately 10 percent below the current market price, and the contract was awarded to a supplier who significantly reduced his bid in the auction’s final moments.
Raw Materials Purchasing is also extending this virtual form of purchasing to other suitable products. The division normally engages in individual negotiations with all potential suppliers. The on-line auction eliminates this step, leading to considerable cost savings. In the field of global raw materials purchasing on the Internet, BASF is working closely with ChemConnect Inc. in San Francisco, California. ChemConnect is BASF’s preferred partner in its strategy to develop the Internet as an environment in which to purchase raw materials.
Methanol is one of the most important raw materials in the chemical industry and, as an indispensable base product, plays a central role in many value-adding chains. BASF’s total annual methanol production capacity is 450,000 metric tons but the company also purchases considerable amounts of this product from outside suppliers.
BASF is a return-focused global company generating long-term growth and profitability from its activities in chemicals, health and nutrition, and oil and gas. The company’s product range includes high-value chemicals, plastics, dyestuffs, dispersions, automobile and industrial coatings, crop protection agents, pharmaceuticals, fine chemicals, crude oil and natural gas.
BASF’s approach to integration, known in German as “Verbund,” is one of the company’s particular strengths and provides a unique competitive advantage. With sales in 1998 of E27.6 billion (about $29 billion) and a workforce of 105,000 employees, BASF is one of the world’s top chemical companies.
Global Internet Exchange for $4 Trillion Raw Materials Industry Chooses Digital Island
Business Editors/High-Tech Writers
SAN FRANCISCO–(BUSINESS WIRE)–May 17, 2001
RawMart Uses Digital Island’s Managed Hosting and Content Delivery
Services to Drive Profitable e-Business Transactions for More Than
3,400 Buyers and Sellers
Continuing its focus on supporting profitable e-Business transactions for global enterprises, Digital Island (Nasdaq:ISLD) today announced a new customer in Hong Kong, The Noble Group’s (Singapore listed:NOBL) RawMart.com. RawMart.com is the Web’s most comprehensive industrial raw materials marketplace with a hub of seven major industries and supporting services connecting 3,400 buyers and sellers worldwide for the $4 trillion global raw materials industry. The multi-lingual business-to-business online exchange has chosen Digital Island as its global content delivery and managed hosting partner
RawMart is a tool used to assist in the procurement, financing and transport of raw materials and commodities that fuel the world economy, including agriculture, chemicals, energy, metals, minerals, plastics and pulp and paper. Digital Island is helping RawMart link global buyers and sellers of more than 600 industrial raw materials and commodities, which can be customized with 190 market prices, industry indices and reports with navigation in English, Chinese, Russian, Japanese, Spanish, Portuguese and Korean.
Forrester Research forecasts the food and agriculture industry alone will conduct $211 billion in trade online in 2004. U.S. online imports are expected to hit $379 billion in 2004, flowing mostly from its neighbors Mexico and Canada. During this time frame, machinery and transportation equipment will represent the largest category of products shipped across the border.
Digital Island is enabling RawMart to provide a fast, secure and reliable method for producers, traders and consumers to purchase and sell commodities. In addition, Digital Island is delivering real-time information to the site, including 3,000 daily news reports, prices on 105 commodities and 32 foreign exchange rates so that members can make informed buying and selling decisions. All of this information is customized to user specifications providing the most relevant world time, industry news, equity index and foreign exchange data.
“We chose Digital Island as our e-Business infrastructure partner because we require guaranteed availability 24 hours a day, seven days a week, as well as a revenue model that is flexible and can be adjusted according to the changing demands of the site,” said Michael Mudd, chief operating officer of RawMart.Com. “RawMart requires Digital Island’s scalability and global reach to facilitate major customer growth from 3,400 to an expected 10,000 over the next seven months.”
“RawMart is establishing a major presence in online commodity trading and raw materials,” said Tim Wilson, chief marketing officer, Digital Island, Inc. “Digital Island’s infrastructure is the ideal platform for companies like RawMart that need to conduct global e-business on the Web at the scale that multi-trillion dollar industries require. Our services are significantly increasing the efficiency of transaction and information delivery times, helping drive RawMart’s revenue and increase the number of transactions taking place on the site.”
RawMart is using Digital Island’s Footprint(R) Content Delivery service, in addition to Managed Hosting services. As a result, RawMart has experienced a major performance improvement in its Web site operations, as well as a significant cost savings on equipment and maintenance costs. The speed is clearly evident, with pages on the Web site typically loading in less than seven seconds for members with dial-up Internet access and less than two seconds for those with broadband access.
Through RawMart’s testing, conducted by Keynote, an independent Web metrics organization that monitors the performance of the sites, Digital Island’s services provide RawMart with availability that is consistently above 99.9 percent. As a result, the performance of the site places RawMart in the top one per cent of comparable sites.
About The Noble Group
Noble Group Limited is a Hong Kong-based worldwide supplier of industrial raw materials and transport resources. The group links producers and consumers, uniquely integrating sourcing, marketing, processing, transportation and e-commerce through www.rawmart.com. Outside of Asia, Noble Americas trades in coal and coke, fertilizers, cocoa, sugar, oxygenates and refined oil products. Noble Europe’s activities include product and service marketing, the supervision of shipping and the cost-effective delivery of product lines. Noble Group recently acquired the Asian commodity operations of Swiss-based Andre & Cie SA, a global trader of agricultural commodities and will trade under the name of Noble Grain.
Noble Group Limited, (NOBL) reported a record net profit of US$21.1 million for the year ended 2000, a 234 per cent increase over F1999. Turnover rose 51 per to US$1.2 billion for FY2000. Noble operates a global network of offices. They are located in Beijing, Bombay, Cochin (India), Ho Chi Minh City, Hong Kong, Johannesburg, Karachi, London, Manila, Moscow, Newcastle (Australia), New Delhi, Shanghai, Singapore, Stamford (USA), Taipei and Tokyo. Noble is listed on the Singapore Exchange Securities Trading Limited, (NOBL). www.thisisnoble.com.
Increased raw material costs may lead to higher food prices - Brief Article
Raw-materials costs of all kinds are heading higher and it is likely lead to increasing food prices, according to Deutsche Bank analyst Eric Katzman. Food companies have already been hit by rising costs for pensions and benefits; now these companies are seeing large increases in the cost of packaging, transportation and raw materials such as basic grains and oilseeds, he said. “We believe food inflation I likely as processors pass along prices,” Katzman said.
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Although wheat prices are down 25% over the past three months, spot prices are climbing on strong international demand for U.S. wheat because drought conditions have hurt some wheat crops. Speculation that China will stop exporting corn in January is driving spot prices for corn higher, he said.
Deutsche Bank’s packaging analyst Dan Khoshaba expects packaging costs will be up 6% to 8%, while transportation analyst John Barnes forecasts transportation costs will climb 2% to 6% next year.
According to Katzman, it still unclear whether any price increases made by the food companies will be effective in completely offsetting cost-margin pressure. As a result, the companies will have to rely on more productivity, cost savings and better return on promotional investment in 2004 and 2005, he said.
With this in mind, Katzman thinks those companies in highly concentrated, rational categories should be okay in such an environment including candymaker Hershey Foods Corp., spice and seasonings maker McCormick & Co., snack and beverage company PepsiCo Inc. (PEP), and chewing gum maker Wm. Wrigley Jr. Co.
ICI shares slide on fears of rise in raw material costs
ICI SHARES took a tumble yesterday on fears that the Dulux paints to speciality chemicals group could be hit by a renewed surge in raw material prices.
The 3 per cent fall in the shares came despite first-quarter profits coming in at the top end of expectations and a bullish market outlook from ICI.
Reporting a 29 per cent increase in pre-tax profits before exceptional items to pounds 67m, ICI’s new chief executive John McAdam, said that while demand continued to be generally good, the outlook for raw material costs was “uncertain”.
Analysts took the comments as an indication that ICI could suddenly be hit by a repeat of the rise in input prices, which prompted last year’s profits warning and the departure of its former chief executive Brendan O’Neill. However, Tim Scott, ICI’s finance director, stressed that the group had not seen any price rise between the end of last year and the first three months of this. “We were able to get price increases last year when we needed to and if raw material prices rise again we would seek to repeat that,” he added.
Mr Scott said ICI remained committed to remedying the problems in its Quest flavourings and fragrance division. The sale last month of Quest’s food ingredients arm to Kerry Group for pounds 200m prompted speculation that ICI might dispose of the remainder of the business. However, Mr Scott said: “There is still a lot of value in Quest for ICI shareholders which we do not intend to give away to others.”
The weak dollar knocked pounds 6m from profits for the three months. Despite this, the paints division increased trading profits by 26 per cent to pounds 34m while Quest’s trading profits rose 45 per cent to pounds 13m and National Starch reported a 28 per cent improvement to pounds 50m.
ATI Allegheny Ludlum Adds Iron Component to Raw Materials Surcharge Formula
Allegheny Technologies Incorporated announced that ATI Allegheny Ludlum plans to add an iron component to its raw materials surcharge formula, effective with shipments . A surcharge of $60 per ton, or $0.03 per pound, is being applied to all stainless steel, nickel alloy and specialty steel products, including products sold under contracts. The iron component is subject to adjustment based on changes in raw materials costs. This addition is necessary to offset the rapid inflation of iron which is a necessary material in Allegheny Ludlum’s products.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Actual results may differ materially from those expressed or implied in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Allegheny Technologies’ filings with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
Allegheny Technologies Incorporated is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $1.9 billion in 2003. The Company has nearly 8,800 employees worldwide and its talented people use innovative technologies to offer growing global markets a wide range of specialty materials. High-value products include nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steels, super stainless steel, exotic alloys, which include zirconium, hafnium and niobium, tungsten materials, and highly engineered strip and Precision Rolled Strip(R) products. In addition, we provide commodity specialty materials such as stainless steel sheet and plate, silicon and tool steels, and forgings and castings.
Raw Material Cost Hikes to Lower Craftmade Gross Margins
Today reported that, due to increases in costs of certain raw materials (steel, copper, aluminum and certain other products) associated with the manufacture of its products, gross margins in the second and third quarter are lower than originally anticipated, causing a more moderate growth in earnings for fiscal 1995. The raw materials increase is related to a higher than expected demand for these materials. Fanthing Electrical Corp. and Sunlit Industries Co. LTD, the Company’s primary suppliers, have informed the Company not to expect a reversal of this trend in the near future due to demand for these materials necessary for the rebuilding of earthquake-destroyed Kobe, Japan. It is anticipated that these increases will affect the ceiling fan and lighting industry as a whole, as well as other industries in the Asian markets where products using these materials are produced.
James Ridings, president, commented that the Company has taken steps to increase prices, which should allow the Company to recover some of the decrease in gross margin in the fourth quarter of this year. “We are still optimistic that the Company will see a positive earnings increase for the year and about its ability to increase revenues and income in the future despite the current conditions.”
Ridings also commented that the Company’s stock repurchase program, instituted January 31, 1995, has been very successful. To date, the Company has acquired over 80,000 shares of the Company’s common stock. The Company will continue to acquire shares, up to the 200,000 share limit currently set by the Company’s Board of Directors, as the opportunity presents itself.
Craftmade International Inc. is engaged in the design, distribution, and marketing of ceiling fans, light kits and accessories manufactured to its specifications. The Company currently markets over 125 basic models of ceiling fans and over 135 lighting fixture models under its Craftmade brand, to over 1,300 retail outlets. The Company’s Durocraft Design subsidiary is a specialty lamp manufacturer selling to the specialty retailing industry.
Sharp rises in raw material costs stoke inflationary fears as factory
THE COST of raw materials for industry surged to record levels across the Western world last month, driven by the oil price surge, according to surveys yesterday. The reports will add to fears of rising inflation and interest rates in the UK, Europe and United States.
In Britain, prices paid for raw materials and labour rose at the sharpest rate for almost five years, despite only a modest rise in the sector’s rate of expansion.
The manufacturing economy recorded further expansion in March but at a slower pace than in the second half of last year, said the Chartered Institute of Purchasing and Supply.
The sector has now grown for 11 months in a row, thanks to further rises in both output and new orders. But the build-up has put pressure on factories, with raw materials costs rising and delivery times lengthening.
The prices index rose at its highest level since August 1995 with almost a quarter of the 620 firms saying prices were higher than the previous month. Firms blamed shortages of commodities for an increase in the length of time taken to deliver finished products.
“These shortages in supply, combined with strong global demand and high oil prices, outweighed the deflationary effect of the strong pound to lead once more to sharply rising prices,” Cips said.
The volume of new orders grew more slowly than the previous month, with firms blaming the strong pound for making UK goods less competitive abroad.
Analysts said the survey contained nothing new to influence the Bank of England’s decision on rates on Thursday. David Hillier, UK economist at Barclays Capital, said the Bank would have to raise rates despite the poor manufacturing background: “This data suggest this month is probably the least painful time to do it.” But Stewart Roberston, of Lombard Street Research, said sterling should prevent a hike.
Prices paid by US factories in March rose at their steepest rate for five years, according to the National Association of Purchasing Management. Overall, industrial activity grew for the 14th straight month. Larry Rice, at Josephthal Lyon & Ross, said: “Prices are going up. It just confirms we are going to get an increase in interest rates next month. The real question is whether it’s a quarter or a half a point.”
In Europe, the manufacturing sector expanded at its fastest rate since the survey began three years ago, while orders book grew strongly indicating further expansion ahead.
But prices were also a worry in the eurozone, with the cost of raw materials rising to a record high last month. While the oil price was a key factor, the weak euro also pushed up prices.
Higher Raw Material Costs Continue to Affect Forest Products Industry Earnings
Higher raw material costs continue to hamper the forest products industry, negatively impacting earnings during the first quarter of 2007. Prices for delivered logs and chips increased during the first quarter costing paper, paperboard and solid wood manufacturers $2.4 billion, or an additional $64.7 million for virtually the same volume from the fourth quarter of 2006, according to Forest2Market, Inc. (F2M), a Charlotte-based provider of pricing data for the forest products industry.
According to F2M’s Free on Board (FOB) Delivered Pricing Benchmark service, paper and paperboard manufacturers’ raw material costs were approximately $34.80 per ton, an increase of almost $1.50 per ton from the fourth quarter of 2006. Raw material costs were affected for the most part by seasonal weather patterns during the quarter as evidenced by a 21 percent reduction in mill inventories from the fourth quarter. Cost increases, however, were partially offset by decreased mill production (measured by mill consumption). Consumption was three percent less than the prior quarter.
As for the solid wood sector, manufacturers were unsuccessful in cutting raw material costs in the wake of weakening demand for lumber and panels. Raw material costs for the solid wood sector were $52.05 per ton, an increase of $0.28 per ton from the fourth quarter of 2006. As with the paper and paperboard sector, raw material prices were affected for the most part by seasonal weather patterns. Mills, however, were disciplined in their purchases this period despite declining inventories of approximately four percent.
The outlook for the second quarter is positive for paper and paperboard manufacturers. Raw material costs were decreasing in March and will continue as seasonal weather patterns are expected to improve. Mill inventories are expected to recover as a result, allowing mills to balance supply with paper and paperboard demand. On the downside, the weakened state of the housing market will continue to put pressure on solid wood manufacturers. Raw material costs for solid wood manufacturers are also expected to benefit to some degree from improved weather patterns, but mills will be forced to reduce production in order to align solid wood demand with supply. This will have a negative affect on the supply of solid wood residuals, causing FOB price increases for residual chips to the paper and paperboard sector.
F2M collects FOB delivered price data on a transaction basis from forest products companies in order to establish a credible and reliable cost benchmark for delivered logs and chips. While serving the forest products industry with solutions since 2000, F2M is celebrating its first full year of FOB delivered cost benchmarks collected from 75 percent of all wood fiber transactions in the southern U.S.
To use the FOB delivered service, forest products companies must provide F2M with their actual data, on a load-by-load transactional basis. F2M then organizes the data in a consistent manner and computes a weighted average benchmark, which is updated quarterly. Benchmarked raw materials include pine pulpwood, hardwood pulpwood, pine sawtimber, pine and hardwood chips and residual woodfuel. F2M also collects and reports weighted average inventory levels for the southern U.S.
Forest2Market was founded in 2000 to bring solutions to participants in the forest and wood products supply chain. F2M provides raw material pricing data for the forest products industry that is current, local and accurate, thus allowing landowners and forest products professionals to make more informed decisions.