Factbox: Nordic companies and their struggle with rising costs

Austevoll Seafood ASA

26/08/2021 13:11

Aug 26 (Reuters) - As prices of raw materials and components
rise amid shipping problems and shortages of some goods,
companies from the Nordic countries are trying to mitigate the
financial impact.
    Global corporate profits in the third quarter are likely to
fall for the first time in 18 months as the spreading COVID-19
Delta variant squeezes supply chains and raises labour costs.
 urn:newsml:reuters.com:*:nL4N2PP1ZS
    
    Below are comments from Nordic companies on their efforts to
cushion the blow from rising costs:
    
    AAK  AAK.ST : "We have initiated a formal consultation
process regarding production consolidation to further optimize
our European bakery business in line with our strategy. This to
improve cost efficiency and increase competitiveness while
continuing to support our customers with the same high level of
dedication and service."  urn:newsml:reuters.com:*:nWkrbSwDtm
    
    Assa Abloy  ASSAb.ST : "Since raw material costs have
continued to increase during the second quarter we have
continued to implement numerous price increases that largely
offset the cost impact."  urn:newsml:reuters.com:*:nWkr2mKMZ8
    
    Atlas Copco  ATCOa.ST : "A large part of the components used
in production are sourced from sub-suppliers. The availability
is dependent on the subsuppliers and if they have interruptions
or lack capacity, this may adversely affect production. To
minimize these risks, Atlas Copco has established a global
network of sub-suppliers, which means that in most cases there
are more than one sub-supplier that can provide a certain
component."  urn:newsml:reuters.com:*:nNDL400sXK
    
    Bergs Timber  BRGB.ST : "Increased raw material prices have
been offset by increased prices for our products and margins
have increased."  urn:newsml:reuters.com:*:nWkr7R5BWp
    
    BillerudKorsnas  BILL.ST : "We are implementing additional
price increases in several of our segments to counterbalance
cost increases in chemicals, energy, market pulp and
logistics." urn:newsml:reuters.com:*:nWkrS4nT3
    
    Bonava  BONAVb.ST : "Rising prices for construction
materials and a shortage of input goods has had a limited impact
on our projects to date. We are working actively to optimise
orders and the flows to our construction sites, both through
strategic purchases centrally for more markets and through close
dialogue with local suppliers."  urn:newsml:reuters.com:*:nWkr28CNR6
    
    Bravida  BRAV.ST : "We work with both contracts and
long-term partnerships on the supplier side and with price
increases in respect of customers. We therefore see no
significant risk that higher commodity prices will affect our
margin in the longer term."  urn:newsml:reuters.com:*:nWkrcb9bB0
    
    Carlsberg  CARLb.CO  Chief Executive Cees 't Hart warned
that while the company has hedged against rising commodity
prices until the end of the year, "significantly higher" costs
would hit the company next year, driven by rising prices for
aluminium, barley, paper and oil.  urn:newsml:reuters.com:*:nL1N2PP0DB
    
    Cargotec  CGCBV.HE : "We are prepared to respond to the
situation with price increases and active cooperation with our
suppliers. Challenges in the supply chain and the related price
increases mainly affected Kalmar's results."* urn:newsml:reuters.com:*:nNDL8Jw5dT
    * Kalmar is one of Cargotec's three business units.
    
    Electrolux  ELUXb.ST : "We have announced and started
implementing additional price increases, taking effect gradually
throughout the rest of the year."  urn:newsml:reuters.com:*:nNDL4mkmNG
    
    Essity  ESSITYa.ST : "Announced price increases in Consumer
Tissue as a result of higher costs for raw materials, energy and
distribution."  urn:newsml:reuters.com:*:nWkr7Z95F8
    
    Getinge  GETIb.ST : "Some minor measures to adjust costs
were carried out and plans have been made to further adjust
costs if necessary."  urn:newsml:reuters.com:*:nWkr59Hqx8
    
    Glaston  GLA1V.HE : "Due to increasing material and freight
costs, we are focusing on managing our product pricing
accordingly."  urn:newsml:reuters.com:*:nWkr3X8TnV
    
    Huhtamaki  HUH1V.HE : "Continued focus on operational
efficiency and pricing actions to mitigate input cost
inflation."
    
    Kemira  KEMIRA : "To mitigate the cost pressure, we are
continuing our active pricing actions and we are working hard to
capture growing market demand in order to increase sales
volumes."  urn:newsml:reuters.com:*:nWkrb2SSS7
    
    Latour  LATOb.ST : "Component shortages, supply chain
disruptions and increased raw material prices have affected our
companies to varying extents. Product prices have been increased
to compensate for rising raw material prices, not least that of
steel."  urn:newsml:reuters.com:*:nWkr1sjd2G
    
    Nibe  NIBEb.ST : "Due to the dramatic price increases
affecting us, we also had to adjust our own prices, although
with a slight delay."  urn:newsml:reuters.com:*:nNDL8LrMLf
    
    Saab  SAABb.ST : "We continue to have a close dialogue with
our suppliers to mitigate the effects."  urn:newsml:reuters.com:*:nNDL9PJ9c2
    
    SKF  SKFb.ST : "Continued headwinds in the form of negative
currency impact and rising input costs. Through mitigating
actions we have been able to compensate for approximately 50% of
this cost increase."  urn:newsml:reuters.com:*:nWkr1YDshz
    
    Thule  THULE.ST : "To compensate the cost increases, we have
introduced, and already partly implemented, price increases in
two steps."  urn:newsml:reuters.com:*:nMFN3pST27
    
    Tikkurila  TIK1V.HE : "We expect that raw material inflation
and some supply constraints will continue during the second half
of 2021. We will maintain focus on serving our customers to the
best of our capabilities under the supply constraints, while
maintaining our profitability with smart margin management and
targeted pricing changes to offset inflation."  urn:newsml:reuters.com:*:nWkr18hnyq
    
    Trelleborg  TRELb.ST : "The margin was negatively affected
by the rapid and strong price rise for raw materials and partly
by the sales mix. Price adjustments to customers were
implemented and will gradually offset the higher raw materials
prices."  urn:newsml:reuters.com:*:nWkrb0rSTx

    UPM-Kymmene  UPM.HE : "UPM will continue to manage margins
with product pricing, optimising its product and market mix,
efficient use of assets as well as by taking measures to improve
variable and fixed cost efficiency."  urn:newsml:reuters.com:*:nGNEbFr1HR  
    
    Vestas  VWS.CO : CEO Henrik Andersen said during a
conference call after the wind turbine maker cut its 2021
guidance in response to higher costs and supply constraints:
"It's mitigation down to a single asset and down to a single
shipment."  urn:newsml:reuters.com:*:nL1N2PI0D2
 
    YIT  YIT.HE : "Cost inflation of construction materials has
started accelerating and the price pressure is expected to
continue... The mitigation actions include pricing as well as
contractual and procurement practices."  urn:newsml:reuters.com:*:nGNEbFr1HR
    

 (Reporting by Aleksandra Jasiurska and Boleslaw Lasocki
Editing by Keith Weir)
 ((aleksandra.jasiurska@tr.com; boleslaw.lasocki@tr.com; +48 58
769 66 00;))