Howard Industries announces that it is increasing prices on existing TSI-based transformer contracts effective for shipments beginning January 1, 2007. This increase is necessary to offset substantial cost increases for raw materials, including core steel, conductor material (magnet wire and aluminum strip), and transformer oil, which will be implemented by our suppliers on shipments as of January 1.
The price increase will be applied to orders having leadtimes that result in shipments on or after January 1, 2007. As an example, contracts having a six-week leadtime would reflect the price increase beginning with orders received as of November 15, 2006.
The amount of the increase will be determined for each contract using the Forward-Looking January 2007 Transformer Surcharge Index (TSI). This forward-looking TSI contains the same commodity cost data as the current TSI (October 2006), except for core steel, copper, aluminum, and oil. Cost data for these four commodities has been revised to reflect material cost increases our suppliers will implementation on material shipments as of January 1, 2007.
Howard Industries will continue its best efforts to mitigate the effects of raw material cost increases by working closely with our suppliers and by looking for ways to further improve our manufacturing processes. Our sales representatives will be in contact with our blanket contract customers to explain the price increase more fully and to discuss details regarding implementation. |
