German Henkel, ThyssenKrupp pass on price rises
FRANKFURT (Reuters) - German consumer goods firm Henkel (HNKG_p.DE: Quote, Profile, Research) and steelmaker ThyssenKrupp (TKAG.DE: Quote, Profile, Research) are succeeding in passing higher raw material costs on to their consumers, while tire maker Continental (CONG.DE: Quote, Profile, Research) is struggling, executives said in interviews published on Sunday.
The comments from ThyssenKrupp and Henkel -- the company behind brands like Persil soap powder and Pritt glue -- support the European Central Bank's fear that rising commodity prices will feed through to consumer prices, entrenching record-high euro-zone inflation for the long term.
"Our raw material prices have doubled in some cases," Henkel's chief financial officer Lothar Steinebach said in an interview with the Frankfurter Allgemeine Sonntagszeitung newspaper.
"We are raising prices. We have already done so with adhesives and we're going to follow this up in other sectors," he added.
ThyssenKrupp, facing higher costs for iron ore and coal to fuel its furnaces, said it was asking customers with contracts with a fixed price for steel in 2008 to sign new ones at a higher price guaranteeing them steel until June 2009.
Customers which did not do this risked being put at the back of the queue for steel in 2009, Chief Executive Ekkehard Schulz told news magazine Der Spiegel.
"(Customers) would have to reckon with a significantly higher price rise in 2009. And we can't guarantee that you would get your desired quantities in 2009, because there's a shortage of our high-quality steel," he said.
ThyssenKrupp's steel is used in cars and power stations, among other things, and Schulz said the company was the world's fourth-largest steelmaker by revenue. Continued...
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