Chicago, August. 01, 2022 (GLOBE NEWSWIRE) — Oil-Dry Corporation of America (NYSE: ODC ) announced today that it plans to raise prices due to increased capital improvement costs.
Daniel S. Jaffee said, “Global supply chain challenges combined with rampant inflation have resulted in fixed asset replacement costs that have nearly doubled their historical acquisition costs. Our customers depend on us to keep our processes lean and operations to meet ever-growing demand for high-quality products with strong service levels. Likewise, through price increases We now find it necessary to pass, which will allow us to replace equipment as it exceeds its useful life. As noted in our publicly filed documents, our capital expenditures have significantly exceeded our annual depreciation over the past three years, and that trend is expected to continue in the future. To maintain a strong and sustainable capital-intensive business, We need to increase our prices so that we can continue to invest in our infrastructure to meet and exceed our customers’ expectations.
In the coming weeks, we will announce product specific price increases to incorporate these rapidly rising capital improvement costs. These capital-related increases, equal to approximately 4% in the long run, are added to inflationary increases driven by rising costs of goods, transportation, labor and other production costs.
We greatly appreciate the partnership and support of our loyal customers. We have always taken a long-term approach to our business and will continue to do so.
Oil-Dry Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, bleaching clay and cleaning fluids, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated, which enables the company to efficiently monitor every step of the process, from research and development to marketing and sales to the supply chain. With over 80 years of experience, the company continues to fulfill its mission of creating value from sorbent minerals. To learn more about the company, visit oildri.com.
Category: Company News
Leslie A. Garber
Investor Relations Manager
Oil-Dry Corporation of America