Donaldson Company announced Thursday increased list prices for select products in both the Engine Products and Industrial Products segments by an average of 4 to 15 percent, depending on business unit and region.
Account representatives from Donaldson are now communicating specific details directly to their customers, with the timing of the increase subject to the terms of applicable agreements, the company says.
“While we are encouraged by the favorable 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,” says Tod Carpenter, chairman, president and CEO.
“In addition to our continuous improvement and expense optimization initiatives, we are 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.”
Donaldson says purchased raw materials represent between 60 and 65 percent of Donaldson’s cost of goods sold. Of that amount, steel, including fabricated parts, and filter media each represent approximately 20 percent, and the remainder is primarily petroleum-based products and other components.