[Default] On Wed, 09 May 2007 19:55:47 -0000, "Forbes Bagatelle-Black"
>--- In email@example.com, murdoch <murdoch@...>
>> >[...] The decline in gross margin was the result of lower
>> >revenues combined with higher raw materials costs, especially
>> >lithium cobalt dioxide, which increased approximately 30%-40% in
>> >the March quarter. [...]
>Keep in mind that this figure is not out of proportion relative to the
>cost increases for other materials lately. Steel, aluminum, plywood,
>nickel - everything has been getting dramatically more expensive as
>China's hunger for cosumer goods increases exponentially.
Thanks Forbes, that seems like a good point.
As I mentioned in another group, I don't think I took an overly-large lesson
from spotting that point in the corporate report (the company neither did
spectacularly well or badly from the situation) but I value these chances to
pick up on these obscure mentions of how the industry is functioning. To see a
real-world battery company rolling with the punches in response to material
pricing is interesting. Of course, we see it every quarter with all
lead-battery companies quite focused on the price of lead, gobally.
I think we will continue to try to read the tea-leaves of how the battery
industry might be affected by materials pricing, and we'll have to be open to a
lot of different clues and to ongoing education.