Kodak to hike prices due to rising costs
SAN FRANCISCO (Reuters) - Eastman Kodak Co (EK.N) said on Friday it will raise prices on some products by as much as 20 percent due to soaring prices for energy and raw materials such as silver and aluminum.
The news from the maker of photographic film and digital cameras was one of the biggest signs to date by a top consumer name that corporate America is starting to respond to inflation by passing on the costs to customers.
"The increases are a result of the soaring prices of key raw materials, especially silver and aluminum, as well as the rising cost of petroleum," Kodak said in a statement.
Surging energy and commodity costs have been eating into corporate profits.
Dow Chemical Co (DOW.N), the top U.S. chemical maker, said on Wednesday it would raise prices on its products next month by as much as 20 percent because of higher energy costs.
Dow rival Huntsman Corp (HUN.N) also plans to raise prices by up to 25 percent.
Airlines have responded to rising fuel costs with increased fares and cut flights. In an unprecedented move for a U.S. carrier, American Airlines, a unit of AMR Corp (AMR.N), said it plans a $15 charge for many passengers' first checked bag.
Kodak said the price rises would take effect on a select range of its products around the world, but the company gave no specifics other than to say it could charge as much as 20 percent more.
Earlier in May, Kodak blamed higher silver and aluminum costs for contributing to its bigger-than-expected quarterly loss of $114 million.
The higher input costs are pinching Kodak at both ends of its business: silver is used in the photographic film that is still the company's cash cow, despite its recent emphasis on digital, while aluminum is used to make commercial printing plates, one of its important growth segments.
Kodak said it expected the increases to take effect by July 1 and that they would be phased in by product group and geography over the coming weeks.
(Reporting by Scott Hillis, editing by Leslie Gevirtz and Andre Grenon)
