High oil and feedstock costs are taking toll on margins of polymer manufacturers. Struggling to keep pace with high costs of inputs, DuPont Co. plans to raise prices of most products for the second time in less than a year. DuPont's ratio of selling prices to the cost of feedstock and chemicals has dipped almost 40% below the 25-year trend. The resulting margin squeeze will hamper the ability of DuPont to develop new and improved products. Most of the company's units will boost prices this quarter, subject to negotiations with individual customers.
Earlier this year, Dupont raised prices by 5% in the fourth quarter, fulfilling a September pledge to boost prices on its 35,000 products. Sales volumes in the period fell 4%. First-quarter prices rose 3% and volumes rose 2%.
18-May-06 
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