Webb Responds to Increased Costs

Webb Wheel Products announced that it will take immediate actions to mitigate the risks associated with skyrocketing global metals prices.
Webb will move to a monthly pricing schedule for all product lines, reflecting increases imposed by the metals market in the purchased price of its products.

Webb Wheel Products' President Pedro Ferro explained: "Castings are a significant part of our total product costs. Webb has been working closely with our casting suppliers to monitor the scrap market trends. In the first quarter of 2008, scrap prices have increased 88 percent, and we have experienced further alarming increases since the first of April. It's unfortunate, but we have no reason to believe the extreme scrap market volatility will subside any time soon, thus making the immediate pricing changes necessary."

Webb will closely monitor escalated costs for raw materials such as No. 1 heavy melting steel and shredded steel scrap used in producing castings for the wheel-end Industry to mitigate, wherever possible, the impact this pricing change will have on its customers. The company will respond to these increases in the global scrap market to maintain product quality and service.