Howard Dahl, CEO of Amity Technology, says the company isn't taking any more new equipment orders due to supply chain issues and rising inflation, according to a March 25 report from Reuters. "Normally we begin selling equipment in early November. Largely because of the uncertainty of the supply chain, we limited what we were going to build," Dahl told Reuters.
The report quoted Dahl as saying not raising Amity's prices quickly enough had hurt the company's profit, saying, "We did not raise our prices quickly enough, so we’ve had some profit erosion. There's only a couple of components that we're single-sourced on so we're taking a hard look at all alternatives."
The report stated Amity's material costs "have jumped 21% year-over-year through March while the price of steel has doubled," putting Dahl "in a delicate situation to price equipment and control costs."
The report mentioned Deere's announcement that it will "pause advance orders on equipment not already in stock" in its recent earnings call and quoted CNH Industrial CEO Scott Wine as telling Reuters, "With high inflation, we're being careful how far out we go. If [input] prices rise too much, we're not going to sell something and lose margin."
Post a comment
Report Abusive Comment