The CEO of Newll Brands said on Friday that he aims to reduce its dependence on Chinese suppliers to reduce the impact of the American import tariff, after its unexpected quarterly expectations.
Sharpie Maker, which is partially manufactured and products from China, said it plans to reduce the cost of ready -made goods imported to the United States to less than 10 percent of about 15 percent of the total cost of the company that is sold by the end of the year.
Earlier this week, US President Donald Trump duty 10 percent of the customs tariff sweeps all Chinese imports, which sparked a new trade war between the world’s largest economists.
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“The company transforms production from China to alternative geographical areas through both current and new suppliers,” said Chris Peterson, CEO of the post -profit call on Friday.
The shares of the Graco product maker for children fell 27 percent on Friday after expected a loss in the first quarter of six cents and nine cents per share, compared to analysts’ estimates to win three cents, according to the data collected by LSEG.
It is also expected that the net annual sales will decrease in the range of 2 percent to four percent, compared to the estimates of analysts by 0.7 percent. The company added that these expectations are not considering the impact of definitions.
Last year, we have elections before usTell Peterson Reuters The company was transporting some kitchen appliances outside China and transferred manufacturing to its writing work to Tennessee because it faces “uncertainty” on the definitions.
