CHICAGO, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC) today announced that it plans to raise prices due to increased capital improvement costs.
Daniel S. Jaffee stated, “Global supply chain challenges coupled with rampant inflation have resulted in fixed asset replacement costs that are nearly double their historic acquisition costs. Our customers rely on us to keep our processes lean and operations robust enough to meet their ever-growing demand for high quality products with strong service levels. As such, we now find it necessary to pass through price increases that 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 deprecation over the past three years, and that trend is expected to continue into 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 coming weeks, we will be announcing product specific price increases to incorporate these rapidly rising capital improvement costs. These capital related increases, which equate to approximately 4% over the long term, will be added to inflationary increases driven by the rising costs of commodities, transportation, labor and other manufacturing costs.
We very much appreciate our loyal customers’ partnership and support. We have always taken a long-term approach to our business and will continue to do so.”
About Oil-Dri
Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, bleaching clay and fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. To learn more about the Company, visit oildri.com.
Category: Company News
Contact:
Leslie A. Garber
Manager of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515
