CHICAGO, Aug. 01, 2022 (GLOBE NEWSWIRE) — Oil-Dri Corporation of America (:ODC) today announced plans to raise prices due to rising capital improvement costs.
Daniel S. Jaffee said, “Global supply chain challenges coupled with runaway inflation have resulted in capital replacement costs that are nearly double their historical acquisition costs. Our customers rely on us to keep our processes lean and our operations robust enough to meet their ever-increasing demand for high-quality products with strong service levels. As such, we now find it necessary to go through price increases that allow us to replace equipment as it passes its useful life. As indicated in our publicly filed documents, our capital expenditures have significantly exceeded our annual amortization for the past three years, and this trend is expected to continue in the future. In order to maintain a strong and sustainable capital-intensive business, it is necessary to increase our prices so that we can continue to invest in our infrastructure to meet and exceed our customers’ expectations.
Over the next few weeks, we will be announcing product-specific price increases to accommodate these rapidly increasing capital improvement costs. These capital-related increases, which will equate to approximately 4% in the long term, will be in addition to inflationary increases driven by rising raw material, transportation, labor and other manufacturing 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-Dri Corporation of America is a leading manufacturer and supplier of specialty absorbent products for pet care, animal health and nutrition, bleaching clay and fluid purification, agricultural ingredients, grounds sports, industrial and automotive markets. Oil-Dri is vertically integrated, allowing the company to effectively oversee every step of the process, from research and development to supply chain, marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission of creating value from absorbent minerals. To learn more about the company, visit oildri.com.
Category: Company News
Leslie A. Garber
Head of Investor Relations
Oil-Dri Corporation of America