Keith McLoughlin, president and CEO of appliance maker Electrolux AB, singled out rising resin costs yesterday when the company presented its latest quarterly results. It's not surprising -- Electrolux reported that its quarterly sales and profits both fell, yet its raw material prices are rising. That's not a good trend. McLoughlin said the company plans to raise prices to offset its higher costs -- "a risky strategy," The Wall Street Journal reports today, "given low consumer confidence in mature markets." Electrolux raised some eyebrows last year when the company hired a marketing firm to help it scout the United States for injection molders that could help lower its part costs. Is it a coincidence that now the company is blaming rising resin costs for its troubles? Electrolux looks like a company that's trying pretty hard to keep a close eye on its suppliers.
Electrolux not happy with rising resin prices
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]