Filtration systems and parts manufacturer to increase price by 4% to 15% of select products
Donaldson, a worldwide manufacturer of filtration systems and parts, has increased list prices for select products in both the Engine Products and Industrial Products segments by an average of 4% to 15%, depending on business unit and region.
Account representatives from Donaldson are now communicating specific details directly to customers, with the timing of the increase subject to the terms of applicable agreements.
Commenting on the announcement, Tod Carpenter, chairman, president and CEO, said: “While we are encouraged by the favourable market conditions and increasing demand, our gross profit is under pressure from several factors, including significant cost inflation in our two largest inputs, steel and media, as well as freight and other demand-related costs.”
Carpenter said that in addition to the continuous improvement and expense optimisation initiatives, Donaldson is implementing price increases to recapture a portion of the inflationary pressure. “At the same time, we are continuing to invest in our customers. We remain committed to delivering innovative products and maintaining our position as a top-tier supplier to our customers, which enables them to deliver high-performing products on pace with the global end-market recovery.”
Purchased raw materials represent between 60% and 65% of Donaldson’s cost of goods sold. Of that amount, steel, including fabricated parts, and filter media each represent approximately 20%, and the remainder is primarily petroleum-based products and other components.