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Surcharge Calculations – August 18,2010

August 18th, 2010

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = .6990 kwh / gross lbs melted

2. Cost per KWH = .08968$/kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2010 = (2000 lbs x .6990 kwh/gr lb melted) x .08968$/kwh = $120.54/ Gr ton melted

b. Adjusted for yield to get to $/net pound – 0.1159 – 0.0488= .0671$/net pound

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

B. Natural Gas

1. Dollar consumption per gross pound melted = .0054$ / gross lbs.

a. Adjusted for yield – 0.0104 – 0.0081 = 0.0023$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

C. Coke – Cupola Shop = $506 / nt purchased

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

c. Coke is the primary energy source in a cupola melt operation, independent of the electricity required for the holding furnace. Increased cost is reflected in a “charge” cost calculation. (See charge cost June 7, 2010 below).

D. Water / Sewer = .0062$ / gal

a. Adjusted for yield – 0.0119 – 0.0081 = 0.0038$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

E. Energy total

          a. Electricity – 0.0671$/net pound variance to base

                 b. Natural Gas – 0.0023$/net pound variance to base

                 c. Charge Coke – 0.125$/net pound variance to base

                 d. Water / Sewer – 0.0038$/net pound variance to base

e. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

II. Disposal Costs – Consumption per gross lb melted = .0113$/gross lb

a. Adjusted for yield – 0.0113 – 0.0065 = 0.0048$/net pound variance to base

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

III. Pre-charge cost calculation / Disposal and Energy

       a. Energy total – 0.0732$/net pound variance to base

                              b. Disposal total – 0.0048$/net pound variance to base

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

IV. Charge calculations – Base Year January 4, 2010 (See Link)

V. Total surcharge adjustment since base Year 2010.

a. Charge cost increase. - 0.1365$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0048$/net pound variance to base

c. Energy Cost Increase – 0.0732$/net pound variance to base

Subtotal – 0.2145$/net pound variance to base

d. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

VI. It should be noted by all, that under the Obama Administration, all of the above costs will only increase dramatically for many years to come.

As noted from the above calculation our current surcharge should be 0.2145$/net pound, however , we have, at this time chosen to maintain our zero surcharge policy

Daniel Schultz

President & CEO

_________________________________________________________________

SURCHARGE CALCULATION  

August 17, 2010

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 282.69 NT 0.141 45.00% 900.00 126.90 44.06% 881.28 124.26
BASIC PIG IRON 496.00 NT 0.248 10.00% 200.00   49.60   9.79% 195.84  48.57
Foundry Pig - NT 0.000   - - 0.00% 0.00 -
MOTOR BLOCK 344.96 GT 0.154 45.00% 900.00 138.60 44.06% 881.28 135.72
COKE 506.00 NT 0.253   285.00  72.11 0.00% 285.00  72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 960.00 NT 0.480   36.00 17.28   36.00 17.28
CARBON/GRAPHITE 1,370.00 NT 0.685   4.00 2.74   4.00 2.74
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 454.72 GT 0.203     - 2.00% 40.00 8.12
FERRO MOLY - LB       -   0.00 -
INOCUCHROME 2.30 LB 2.300       0.00% 0.00 -
TIN 9.68 LB 9.680     - 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         282.69     302.39
COST PER NET TON WITH RETURNS     409.59     426.65 

_________________________________________________________________

      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 282.69 NT 0.141 44.96% 899.28 126.80 43.84% 876.78 123.63
BASIC PIG IRON 496.00 NT 0.248   9.99% 199.84   49.56   9.74% 194.84 48.32
Foundry Pig - NT 0.000 0.00% 0.00 -   0.00% 0.00 -
MOTOR BLOCK 344.96 GT 0.154 44.96% 899.28 138.49 43.84% 876.78 135.02
COKE 506.00 NT 0.253 0.00% 255.00 64.52 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 960.00 NT 0.480   32.00 15.36   36.00 17.28
CARBON/GRAPHITE 1,370.00 NT 0.685   0.00 -   4.00 2.74
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 454.72 GT 0.203 0.00% 0.00 - 2.00% 40.00 8.12
FERRO MOLY - LB     0.00 - 0.00% 0.00 -
INOCUCHROME 2.30 LB 2.300 0.00% 0.00 - 0.50% 10.00 23.00
TIN 9.68 LB 9.680 0.08% 1.60 15.49 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         285.78     324.44 
COST PER NET TON WITH RETURNS     412.58     448.07

_________________________________________________________________

      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 282.69 NT 0.141 43.84% 876.78 123.63
BASIC PIG IRON 496.00 NT 0.248 9.74% 194.84 48.32
Foundry Pig - NT 0.000 0.00% 0.00 -
MOTOR BLOCK 344.96 GT 0.154 43.84% 876.78 135.02
COKE 506.00 NT 0253 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86
50% SILICON BRICK 960.00 NT 0.480   36.00 17.28
CARBON/GRAPHITE 1,370.00 NT 0.685   4.00 2.74
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50
STEEL 454.72 GT 0.203 1.50% 30.00 6.09
FERRO MOLY - LB   0.00% 0.00 -
INOCUCHROME 2.30 LB 2.300 1.00% 20.00 46.00
TIN 9.68 LB 9.680 0.08% 1.60 15.49
      100.00%    
           
COST PER NET TON         345.41
COST PER NET TON WITH RETURNS     469.04

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Surcharge Calculations – June 7, 2010

June 16th, 2010

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = .6990 kwh / gross lbs melted

2. Cost per KWH = .08968$/kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2010 = (2000 lbs x .6990 kwh/gr lb melted) x .08968$/kwh = $120.54/ Gr ton melted

b. Adjusted for yield to get to $/net pound – 0.1159 – 0.0488= .0671$/net pound

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

B. Natural Gas

1. Dollar consumption per gross pound melted = .0054$ / gross lbs.

a. Adjusted for yield – 0.0104 – 0.0081 = 0.0023$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

C. Coke – Cupola Shop = $506 / nt purchased

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

c. Coke is the primary energy source in a cupola melt operation, independent of the electricity required for the holding furnace. Increased cost is reflected in a “charge” cost calculation. (See charge cost June 7, 2010 below).

D. Water / Sewer = .0062$ / gal

a. Adjusted for yield – 0.0119 – 0.0081 = 0.0038$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

E. Energy total

          a. Electricity – 0.0671$/net pound variance to base

                 b. Natural Gas – 0.0023$/net pound variance to base

                 c. Charge Coke – 0.125$/net pound variance to base

                 d. Water / Sewer – 0.0038$/net pound variance to base

e. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

II. Disposal Costs – Consumption per gross lb melted = .0113$/gross lb

a. Adjusted for yield – 0.0113 – 0.0065 = 0.0048$/net pound variance to base

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

III. Pre-charge cost calculation / Disposal and Energy

       a. Energy total – 0.0732$/net pound variance to base

                              b. Disposal total – 0.0048$/net pound variance to base

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

IV. Charge calculations – Base Year January 4, 2010 (See Link)

V. Total surcharge adjustment since base Year 2010.

a. Charge cost increase. - 0.1764$/net pound variance to base

b. Environmentals & Disposal Increase – 0.0048$/net pound variance to base

c. Energy Cost Increase – 0.0732$/net pound variance to base

Subtotal – 0.2544$/net pound variance to base

d. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

VI. It should be noted by all, that under the Obama Administration, all of the above costs will only increase dramatically for many years to come.

As noted from the above calculation our current surcharge should be 0.2544$/net pound, however , we have, at this time chosen to maintain our zero surcharge policy

Daniel Schultz

President & CEO

_________________________________________________________________

SURCHARGE CALCULATION

June 7, 2010

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 312.71 NT 0.156 45.00% 900.00 140.40 44.06% 881.28 137.48
BASIC PIG IRON 556.00 NT 0.278 10.31% 206.02  57.32 10.10% 201.91  56.13
Foundry Pig - NT 0.000   - - 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 44.69% 893.80 161.78 43.76% 875.21 158.41
COKE 506.00 NT 0.253   285.00  72.11 0.00% 285.00  72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   36.00 16.27   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   4.00 2.87   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 349.44 GT 0.156     - 2.00% 40.00 6.24
FERRO MOLY - LB       -   0.00 -
INOCUCHROME 2.22 LB 2.220       0.00% 0.00 -
TIN 9.68 LB 9.680     - 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         312.71     329.88
COST PER NET TON WITH RETURNS     453.11     467.36 

_________________________________________________________________

      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 312.71 NT 0.156 44.96% 899.28 140.29 43.84% 876.78 136.78
BASIC PIG IRON 556.00 NT 0.278 10.30% 206.04 57.28 10.04% 200.88 55.84
Foundry Pig - NT 0.000 0.00% 0.00 - 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 44.65% 893.08 161.65 43.54% 870.74 157.60
COKE 506.00 NT 0.253 0.00% 255.00 64.52 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   32.00 14.46   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   0.00 -   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50   1.50 1.50
STEEL 349.44 GT 0.156 0.00% 0.00 - 2.00% 40.00 6.24
FERRO MOLY - LB     0.00 - 0.00% 0.00 -
INOCUCHROME 2.22 LB 2.220 0.00% 0.00 - 0.50% 10.00 22.20
TIN 9.68 LB 9.680 0.08% 1.60 15.49 0.08% 1.60 15.49
      100.00%     100.00%    
                 
COST PER NET TON         315.76     350.98 
COST PER NET TON WITH RETURNS     456.05     487.76

_________________________________________________________________

      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 312.71 NT 0.156 43.84% 876.78 136.78
BASIC PIG IRON 556.00 NT 0.278 10.04% 200.88 55.84
Foundry Pig - NT 0.000 0.00% 0.00 -
MOTOR BLOCK 405.44 GT 0.181 43.54% 870.74 157.60
COKE 506.00 NT 0253 0.00% 285.00 72.11
LIMESTONE 18.00 NT 0.009   95.00 0.86
50% SILICON BRICK 904.00 NT 0.452   36.00 16.27
CARBON/GRAPHITE 1,436.00 NT 0.718   4.00 2.87
MANGANESE BRICK 1,998.00 NT 0.999   1.50 1.50
STEEL 349.44 GT 0.156 1.50% 30.00 4.68
FERRO MOLY - LB   0.00% 0.00 -
INOCUCHROME 2.22 LB 2.220 1.00% 20.00 44.40
TIN 9.68 LB 9.680 0.08% 1.60 15.49
      100.00%    
           
COST PER NET TON         371.62
COST PER NET TON WITH RETURNS     508.40

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Thoughts on Taxes

March 29th, 2010

Tax his land

Tax his bed

Tax the table,

At which he’s fed

 

Tax his tractor,

Tax his mule,

Teach him taxes

Are the rule

Tax his work,

Tax his pay,

He works for peanuts

Anyway!

 

Tax his cow,

Tax his goat,

Tax his pants,

Tax his coat.

 

Tax his ties,

Tax his shirt,

Tax his work,

Tax his dirt.

 

Tax his tobacco,

Tax his drink,

Tax him if he

Tries to think.

 

Tax his cigars,

Tax his beers,

If he cries

Tax his tears.

 

Tax his car,

Tax his gas,

Find other ways

To tax his ass.

 

Tax all he has

Then let him know

That you won’t be done

Till he has no dough.

 

When he screams and hollers;

Then tax him some more,

Tax him till

He’s good and sore.

Then tax his coffin,

Tax his grave,

Tax the sod in

Which he’s laid…

 

Put these words

Upon his tomb,

Taxes drove me

To my doom…’

 

When he’s gone,

Do not relax,

It’s time to apply

The inheritance tax…

Accounts Receivable Tax

Building Permit Tax

CDL License Tax

Cigarette Tax

Corporate Income Tax

Dog License Tax

Excise Tax

Federal Income Tax

Federal Unemployment Tax (FUTA)

Fishing License Tax

Food License Tax

Fuel Permit Tax

Gasoline Tax (Currently 44.75 cents per gallon)

Gross Receipts Tax

Hunting License Tax

Inheritance Tax

Inventory Tax

IRS Interest Charges IRS Penalties (tax on top of tax)

Liquor Tax

Luxury Tax

Marriage License Tax

Medicare Tax

Personal Property Tax

Property Tax

Real Estate Tax

Service Charge Tax

Social Security Tax

Road Usage Tax

Recreational Vehicle Tax

Sales Tax

School Tax

State Income Tax

State Unemployment Tax (SUTA)

Telephone Federal Excise Tax

Telephone Federal Universal

Service Fee Tax

Telephone Federal, State and Local Surcharge Taxes

Telephone Recurring and Nonrecurring Charges Tax

Telephone State and Local Tax

Telephone Usage Charge Tax

Utility Charge Tax

Vehicle License Registration Tax

Vehicle Sales Tax

Watercraft Registration Tax

Well Permit Tax

Workers Compensation Tax
STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100

Years ago, & our nation was the most prosperous  in the world.  We had absolutely no national debt, has the largest middle class in the world, and Mom stayed home to raise the kids.

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Base Year Surcharge Calculations – Jan. 4, 2010

March 2nd, 2010

I. Energy / Utilities

A. Electricity

1. Consumption per gross pound melted = .3972 kwh / gross lbs melted

2. Cost per KWH = .0639$/kwh

3. Adjusted for Yield.

4. Electricity costs per ton and pound

a. 2010 = (2000 lbs x .3971 kwh/gr lb melted) x .0639$/kwh = $50.75 / Gr ton melted

b. Adjusted for yield to get to $/net pound – 0.0488$/net pound

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

B. Natural Gas

1. Dollar consumption per gross pound melted = .0042$ / gross lbs.

a. Adjusted for yield – 0.0081$/net pound

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

C. Coke – Cupola Shop = $376 / nt purchased

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

c. Coke is the primary energy source in a cupola melt operation, independent of the electricity required for the holding furnace. Increased cost is reflected in a “charge” cost calculation. (See charge cost January 4, 2010 below).

D. Water / Sewer = .0042$ / gal

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

E. Energy total

a. Electricity

b. Natural Gas

c. Charge Coke

d. Water / Sewer

e. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

II. Disposal Costs – Consumption per gross lb melted = .0034$/gross lb

a. Adjusted for yield

b. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

III. Pre-charge cost calculation / Disposal and Energy

a. Energy total

b. Disposal total

c. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

IV. Charge calculations – Base Year January 4, 2010 (See Link)

V. Total surcharge adjustment since base Year 2010.

a. Charge cost increase.

b. Environmentals & Disposal Increase

c. Energy Cost Increase

Subtotal

d. If a customer’s yield is higher or lower, it will have a significant impact and will be adjusted for accordingly.

VI. It should be noted by all, that under the Obama Administration, all of the above costs will only increase dramatically for many years to come.

_________________________________________________________________

SURCHARGE CALCULATION

January 1, 2010

      CLASS 25     CLASS 30  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST           2041.60  
RETURNS 184.99 NT 0.092 45.00% 900.00 82.80 44.06% 881.28 81.08
BASIC PIG IRON 316.00 NT 0.158 12.00% 240.00 37.92 11.75% 235.01 37.13
Foundry Pig - NT 0.000   - - 0.00% 0.00 -
MOTOR BLOCK 211.00 GT 0.094 43.00% 860.00 81.01 42.11% 842.11 79.32
COKE 376.00 NT 0.188   285.00 53.58 0.00% 285.00 53.58
LIMESTONE 14.00 NT 0.007   95.00 0.67   95.00 0.67
50% SILICON BRICK 486.00 NT 0.243   36.00 8.75   36.00 8.75
CARBON/GRAPHITE 1,060.00 NT 0.530   4.00 2.12   4.00 2.12
MANGANESE BRICK 1,249.00 NT 0.625   1.50 0.94   1.50 0.94
STEEL 484.00 GT 0.216     - 2.00% 40.00 8.64
FERRO MOLY - LB       -   0.00 -
INOCUCHROME 0.91 LB 0.910       0.00% 0.00 -
TIN 7.35 LB 7.350     - 0.08% 1.60 11.76
      100.00%     100.00%    
                 
COST PER NET TON         184.99     202.91
COST PER NET TON WITH RETURNS     267.79     283.99

_________________________________________________________________

      CLASS Super 30   CLASS 35  
    COST     COST     COST
    PER LB % LBS. PER NT % LBS. PER NT
  COST     2001.60     2051.60  
RETURNS 184.99 NT 0.092 44.96% 899.28 82.73 43.84% 876.78 80.66
BASIC PIG IRON 316.00 NT 0.158 11.99% 239.81 37.89 11.69% 233.81 36.94
Foundry Pig - NT 0.000 0.00% 0.00 - 0.00% 0.00 -
MOTOR BLOCK 211.00 GT 0.094 42.97% 859.31 80.94 41.89% 837.81 78.92
COKE 376.00 NT 0.188 0.00% 255.00 47.94 0.00% 285.00 53.58
LIMESTONE 14.00 NT 0.007   95.00 0.67   95.00 0.67
50% SILICON BRICK 486.00 NT 0.243   32.00 7.78   36.00 8.75
CARBON/GRAPHITE 1,060.00 NT 0.530   0.00 -   4.00 2.12
MANGANESE BRICK 1,249.00 NT 0.625   1.50 0.94   1.50 0.94
STEEL 484.00 GT 0.216 0.00% 0.00 - 2.00% 40.00 8.64
FERRO MOLY - LB     0.00 - 0.00% 0.00 -
INOCUCHROME 0.91 LB 0.910 0.00% 0.00 - 0.50% 10.00 9.10
TIN 7.35 LB 7.350 0.08% 1.60 11.76 0.08% 1.60 11.76
      100.00%     100.00%    
                 
COST PER NET TON         187.92     211.42 
COST PER NET TON WITH RETURNS     270.65     292.08

_________________________________________________________________

      CLASS 40  
    COST     COST
    PER LB % LBS. PER NT
  COST     2051.6  
RETURNS 184.99 NT 0.092 43.84% 876.78 80.66
BASIC PIG IRON 316.00 NT 0.158 11.69% 233.81 36.94
Foundry Pig - NT 0.000 0.00% 0.00 -
MOTOR BLOCK 211.00 GT 0.094 41.89% 837.81 78.92
COKE 376.00 NT 0.188 0.00% 285.00 53.58
LIMESTONE 14.00 NT 0.007   95.00 0.67
50% SILICON BRICK 486.00 NT 0.243   36.00 8.75
CARBON/GRAPHITE 1,060.00 NT 0.530   4.00 2.12
MANGANESE BRICK 1,249.00 NT 0.625   1.50 0.94
STEEL 484.00 GT 0.216 1.50% 30.00 6.48
FERRO MOLY - LB   0.00% 0.00 -
INOCUCHROME 0.91 LB 0.910 1.00% 20.00 18.20
TIN 7.35 LB 7.350 0.08% 1.60 11.76
      100.00%    
           
COST PER NET TON         218.36
COST PER NET TON WITH RETURNS     299.02

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Unicast Monthly – September 18th, 2009

September 28th, 2009

CONTINUED CLOSURES & CAPACITY REDUCTION

As foundries such as Grede close plants and Intermet liquidates, they place their customer’s supply line at risk.  Now more then ever buyers need to look at their suppliers, and honestly evaluate their longevity.  Suppliers continue to consolidate, which can lead to transferred tooling, resubmitting samples, additional freight costs, and other costly delays. UNICAST STANDS READY.

UNICAST UPDATES WEBSITE

Unicast is pleased to announce that we will be launching our new website by next Friday, September 25th 2009.  We have added content, updated information about our capabilities, and plan on using our website as a spring-board to open communication and share vital information with our customers 24 hours a day.

The initial update next week is only the beginning.  We are working with our design team and software vendor on establishing unique customer login screens, where customers can get current pricing, check inventory, and print a current statement to see the status of credits and invoices.  We look forward to any feedback you may have on how we can continue to help you get the information you need in a timely manner.

COMMODITIES & CRB INDEX

While many commodities hit an all time high in 2008, as the current economic slowdown spread throughout manufacturing commodity pricing slipped, reaching a low this past April.  Unfortunately many commodities have begun to move back up, causing the CRB index to increase by 23.8% in the last 5 months.

Unicast has worked hard and continually reduced our surcharge throughout the year, at a time when all other foundries are increasing their surcharge. In addition, as surcharges bottom and begin to head back up you should consult your suppliers and ask that they embed the remnants of the remaining surcharge, establishing a new base year.  This will allow you to closely monitor any moves upward against an index of surcharge components such as what Unicast can provide in our surcharge primer.  If consultations are ineffective you should demand a new base year.

chart_sept09

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