GCP Applied Technologies Inc. (GCP) saw a push of 13.06% in premarket. However, the last trading session concluded at $27.02 with a decrease of 1.35%.
North America Concrete Admixtures Price – What’s new?
On 22nd November 2021, GCP announced that price hikes for Concrete Admixtures will be implemented across North America. Prices for all concrete admixture and fiber products will increase by up to 10% from January 1, 2022, in order to continue offering the great solutions GCP’s clients expect at the levels of service they want.
Now what?
Over the last six months, global supply chain impacts on raw material and freight costs have been unprecedented. The company has been increasing inventory levels to meet the customers’ demands. And they have increased transportation capacity to assure prompt delivery. GCP’s priority is the success of clients and their end-users, as well as the promotion of high-quality, environmentally friendly, and cost-effective building processes. Lastly, GCP’s regional sales team will get in touch with each of the clients to explain the unique consequences for their company.
Third Quarter 2021 Results – Latest Updates by GCP
GCP reported third-quarter 2021 results on 3rd November 2021. The company reported net sales of $249.6 with an incline of 0.5%. Moreover, higher raw material and shipping expenses resulted in a gross margin of 33.9 percent.
Reduced employee-related expenses as a consequence of restructuring initiatives and lower incentive compensation costs drove down selling, general, and administrative costs to $59.2 million. Furthermore, higher acquisition-related expenditures and building costs associated with the closure of the Cambridge, MA corporate headquarters largely offset these positive effects. Lastly, gross margin fell to 31.0 percent, leading to increasing raw material costs.
So what?
Despite effects in specific areas owing to intermittent pandemic restrictions and supply chain interruptions, demand was in line with anticipated across both the business divisions in the third quarter of 2021. GCP increased average selling price, reduced selling, general, and administrative costs, and increased productivity in our operations throughout the quarter. Furthermore, the cost inflation, particularly raw material prices and transportation, as well as supply chain interruptions, had a significant impact. The conjunction of these variables had a minor effect on revenues, but a major influence on margins. Last but not least, the Specialty Construction Chemicals division had the most effect.