Oil-Dri Announces Price Increases on its Industrial and Automotive Absorbents

Rhea-AI Summary

Oil-Dri Corporation of America (NYSE: ODC) announced a price increase for its industrial and automotive absorbents, effective October 1, 2022, ranging from 15% to 20%. These increases are necessary to counteract significant inflation in costs such as diesel, natural gas, and labor, as well as rising capital improvement costs. CEO Daniel S. Jaffee emphasized that these adjustments are vital for maintaining product quality and service levels amid ongoing elevated costs.

Positive

• Price increases (15%-20%) may enhance revenue, countering inflationary pressures.
• Strategic pricing could maintain product quality and customer service.

Negative

• Rising costs of diesel, packaging, and labor pressure margins.
• Long-term inflation may continue to impact profitability.

CHICAGO, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC) today announced that it will implement price increases on its industrial and automotive absorbents, effective October 1, 2022.  These price increases will range from 15% to 20%, depending on the product.

Oil-Dri must implement these pricing actions in order to offset significant inflation on diesel, mining, maintenance and repairs, natural gas, packaging, and other non-fuel manufacturing costs, including labor. Additionally, capital improvement costs are rising dramatically and must be factored into pricing now and going forward, given the Company’s manufacturing intensive environment.

Daniel S. Jaffee, President and Chief Executive Officer, stated, “We do not expect relief from these elevated costs in the near term. Price increases are essential to maintaining our high quality products and service levels to our customers.”

Oil-Dri sales representatives will communicate additional details of the price increase to customers directly.

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.

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Contact:
Leslie A. Garber
Manager of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515

FAQ

What is the date of the Oil-Dri price increase announcement?

The price increase announcement was made on August 2, 2022.

What is the range of the price increases announced by Oil-Dri?

The price increases range from 15% to 20%.

Why is Oil-Dri implementing price increases?

Oil-Dri is implementing price increases to offset significant inflation in various manufacturing costs.

What products will see price increases from Oil-Dri?

The price increases will apply to Oil-Dri's industrial and automotive absorbents.

When do the new prices for Oil-Dri products take effect?

The new prices will take effect on October 1, 2022.