- Retailers Brace for Black Friday With Crowd Control
- Commercial Real Estate Near Disaster: Fund Manager
- Motorola Mulls Sale of Home-Networks Unit: Report
- Intimate Apparel Sales Heating Up: Maidenform CEO
- This Town Will Pay YOU $10,000 to Buy a House
- Billionaire Paulson Raises Cadbury Stake Again
- Bear Stearns Fund Manager—Before His Day in Court
- Commentary: Falling Far Short of Health Care Reform
- Treasury Report Says $209 Billion Left in TARP Funds
- A Day On The USS Harry S Truman
- Expect Stocks to End the Year Lower: Market Pro
- Wal-Mart To Continue Retail Success: Analysts
- Financials Lead Dow to Strong November Start
- Markets Salute the Troops on Veteran's Day
- Bear Stearns Fund Manager - Before His Day in Court
- Opposing Views on Coca-Cola Price Target
- How To Play China's 'Amazing' Run: Analysts
- Could Going Solo Ruin Your Career?
MOST SHARED
- China Signals That It May Allow Currency to Rise Against Dollar
- Website Launches That Gives Free Access to Concerts
- Retailers Brace for Black Friday With Steps to Control Crowds
- Unemployment May Cause Loan Defaults in US: Zoellick
- This Town Will Pay YOU $10,000 to Buy a House
- Markets Salute the Troops on Veteran's Day
- Housing in Focus
- Dodd: Financial Reform Bill Is Open for 'Discussion'
Text Size 
Dow Chemical, the biggest U.S. chemicals manufacturer, said Tuesday it will raise prices for its products by as much as 25 percent, institute freight surcharges and cut back on output of some products because of soaring energy prices.
 |
Andrew Liveris, Dow's chairman and CEO, said the company had no choice but to make the moves to survive the unprecedented increase in oil prices.
"By taking down assets, by raising prices and getting as much of it to stick as we can, we're fundamentally moving ourselves so we cannot be swallowed by this massive surge," Liveris said on CNBC.
Dow shares gained 1.5 percent in premarket trading following the news.
The price hikes are the second in a month by the Midland, Mich.-based company that makes thousands of products ranging from plastic wraps to car parts and insecticides.
Dow [DOW
Loading...
()
] said it is also undertaking a series of cost reduction measures at its automotive unit because of the decline in North American auto sales.
Dow said its costs for oil and gas feedstocks and energy bills had jumped fourfold over the past five years to an estimated $32 billion this year.
Liveris was not optimistic that energy prices would stage a significant turnaround.
"I'm convinced that the China consumption, everything we're seeing out there, the long-term trendline is we're seeing oil going to its new plateau," he said. "I believe we're heading north from here, not south."
Last month, the company hiked its prices by 20 percent in an effort to offset the steep jump in oil and gas.
"The price increases we announced on May 28 helped, but they were not enough to fully cover the additional costs we are now facing," Chairman and Chief Executive Officer Andrew Liveris said in a statement.
From Aug. 1, Dow will implement a surcharge of $300 per shipment by truck and $600 per shipment by rail in North America for customers buying chemicals, hydrocarbons and plastics. Freight charges will be applied in other regions later this year.
-- Reuters contributed to this report.
Print
Email
- Bernard and Ruth Madoff's personal possessions will be auctioned this weekend. Click ahead to see.
- How the Lord’s Prayer would read if Goldman Sachs’ Lloyd Blankfein were substituted for you-know-who.
- If you are lucky enough to have money and the time, this is a great time to see America, says CNBC's Jane Wells.
- An Italian cashmere maker aims to make profits while creating ideal conditions for his workers.
- The real result of health care reform will be bloated government and higher deficits, says Larry Kudlow.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
Data is a real-time snapshot *Data is delayed at least 15 minutes