This was attractive to an industry worried about cost inflation.
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Health care cost inflation is the slowest in our nation's history.
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Having addressed the cost inflation issue in textbook publishing, which only accounts for 1 or 2 percent of total student spend, cost inflation in higher education in America over the past 30 years has been unbelievable.
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That should help cut off one major catalyst for health-cost inflation.
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Such features could pressure EBITDAR margins particularly during times of high cost inflation.
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"The external environment remains challenging and underlying cost inflation pressures persist," it said.
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Despite cost inflation, operators continue to realize efficiency gains and increase drilling and production.
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The company was also hurt by the impact of adverse currency, cost inflation and investment phasing.
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BT's cash flow scale and management's measured approach to cost inflation suggests these risks are manageable.
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The survey also showed Japanese factories were facing the sharpest input cost inflation since March 2011.
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On prices, input cost inflation eased to a two-and-a-half- year low in December.
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Input cost inflation continued to accelerate, forcing companies to hike prices for a fourth straight month.
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"New price support has emerged in the form of cost inflation," analysts at Standard Chartered said.
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"We experienced the highest level of cost inflation since the cycle began two years ago," McGarry said.
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Other factors include expected gains in energy and other commodities prices; freight cost inflation, and higher interest rates.
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But in general, healthcare cost inflation simply underscores the need to boost saving, notes Ron Mastrogiovanni, Healthview's CEO.
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As a result, Keybanc downgraded the stock, citing weak long-term catalysts, cost inflation and competition from Samsung.
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"There is no room for cost inflation in those plans," said Arne Sigve Nylund, head of Equinor's Norwegian operations.
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Investments are likely to rise further in 2019 and 2020 as cost inflation returns to the industry, she added.
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For instance, cost inflation for 2018 turned out to be just 3.6% for 2018, while the projection was 6%.
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"Anything consumer-facing that's having to pay UK wages and UK rates is facing cost inflation," said Investec's Ellison.
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Developing and emerging markets have experienced more volatility and pressure in the past with growth and local cost inflation.
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So far there were no signs of cost inflation that could affect the firm's capital expenditure guidance, Saetre said.
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Mr Trump has correctly identified a big villain behind health-care cost inflation, and it is not Big Pharma.
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Each 1 percent increase in labor cost inflation negatively impacts S&P 500 earnings by 0.7 percent, according to Snider.
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Profitability of the division, though, was hurt by operating cost inflation, as rising freight and commodity costs ate into margins.
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By our estimate, the impact of tariffs represent about 10% to 15% of our total projected cost inflation in 2018.
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However, the company slashed its full-year earnings forecast due to non-dairy cost inflation, as well as other factors.
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In the UK, consumers are shopping cautiously, reflecting general cost inflation outstripping wage growth, and broader economic uncertainty, the company said.
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It would focus on infrastructure, which Taylor said offered higher profit margins and where cost inflation was not quite as acute.
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Plus, as the union points out, the contributions studios are required to make simply aren't keeping up with medical cost inflation.
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"It is also reassuring that Assa has now offset previous raw material cost inflation," Credit Suisse analysts said in a note.
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At the same time, the miners say increased energy prices and wage demands are driving cost-inflation and eroding profit margins.
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Slower global revenue growth and expectations for higher global cost inflation were other factors Whirlpool cited in its updated earnings outlook.
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Over the past several years, Mondelez has seen more variability in crops and unexpected cost inflation driven by climate change, he noted.
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"Adjusted EBITDA (was) driven by successful management of cost inflation through revenue management and cost control," Jefferies analysts wrote in a note.
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But these are huge investments, and investor confidence could waver if we see signs of cost inflation, global recession and falling prices.
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"It's a pretty favorable picture that we're doing this well without showing any significant signs of generating wage cost inflation," he said.
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"Together with generally flat pricing and continuing build cost inflation, (that) has contributed to a reduction in the operating margin," he said.
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Over the past several years, he added, Mondelez (MDLZ) has seen more variability in crops and unexpected cost inflation driven by climate change.
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The analysts estimated that every percentage point increase in labor cost inflation weighs on S&P 500 earnings per share by 0.8 percent.
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The report also cited headwinds in 2018 for an expansion of supplies in U.S. shale, such as lower drilling efficiency and cost inflation.
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He added that foreign direct investment was under threat as a result and that "industry margins will come under pressure" from cost inflation.
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This sets conventional oil and gas apart from the US shale industry, which is beginning to experience cost inflation due to resurgent drilling.
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Chief Executive Jan Jenisch spoke of "steep cost inflation" which the company was tackling by increasing prices, boosting efficiency programmes and increasing sales volumes.
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If consumers knew the prices of health care goods and services, they could help contain health care cost inflation by choosing lower cost services.
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The above numbers on price and labor cost inflation clearly show the limits to any supportive action the Fed can offer in the months ahead.
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"Profitability fell short of our expectations due to a combination of unanticipated cost inflation and lower-than-planned savings," Chief Executive Officer Bernardo Hees said.
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"The challenge for FMG will be balancing plans for a better product mix (higher grade/lower discount) with likely cost inflation over time," RBC said.
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What do you think about the idea of trying to tackle health care cost inflation and how that might be tackled in the United States?
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Southwest did see an impact from the flight 222 accident, and also noted higher fuel costs, but said other than fuel, cost inflation is modest.
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Input cost inflation eased to a five-month low in January, the survey shows, allaying concerns that broader inflationary pressures may intensify in China this year.
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"Our experience of generally flat pricing against a back-drop of continuing build cost inflation has ... had an adverse impact on our margins," the company said.
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The company faces cost inflation in commodities such as sugar and chocolate as well as higher imported input costs due to a weaker pound, it said.
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"We think it (cost inflation) is totally manageable," chief financial officer Mario Arreguín said, adding that Fresnillo was looking at ways to be more cost efficient.
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Systemic theft creates cost inflation, he explained, which increases political pressure to make cuts, often affecting both the healthy and the unhealthy parts of a program.
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Of course, cost inflation may return to the industry, and the cash rolling in may eventually loosen spending discipline, as it did a few years ago.
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Coca-Cola, PepsiCo — Atlantic Equities rates both stocks as "overweight" in new coverage, with a positive consumer environment and easing commodity cost inflation among the positive factors.
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"If wages start rising faster than cost inflation, disposable income goes up, then you'd expect that to manifest itself in more consumer spending in retail," he said.
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This subsidy incentivizes care for which the costs exceed the health benefits, and this increased demand puts upward pressure on prices and therefore spurs health cost inflation.
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But the cost of that backing has begun to spike because of the European Union's border policies and the massive cost inflation for Europe's domestic welfare state.
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Cost inflation for drilling as well as other inputs into the exploration and production process will likely put upward pressure on breakeven prices for U.S. shale firms.
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Selling more high-margin products and improving efficiency more than balanced out the effects of increases in raw material costs, cost inflation and amortizations, the company said.
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It is oversimplified in that the causes of health care cost inflation are myriad: provider duplication, inefficiency and error; inadequate prevention and primary care; patient demand, etc.
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On Friday, the company flagged that the average cost of production is likely to increase in the first half, but added that cost inflation has been lower.
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In the meantime, producers are braced for cost inflation, with the major oilfield services firms pressing for price increases by the end of the year and into 2018.
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The rate of cost inflation accelerated sharply, with input prices climbing at the fastest since May 2011 and firms citing higher costs for commodities, steel, oil and energy.
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Since 2014, total health-care cost inflation has been 6-7%, owing to growth in the cost of everything from doctors and hospitals to medical devices and drugs.
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These should offset unfavourable raw material prices, possible adverse foreign-exchange movements and cost inflation as well as higher depreciation and amortisation following the substantial increase in capex.
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Richard Hunter, head of markets at Interactive Investor, flagged concerns about the pub sector as a whole, citing its wafer-thin margins that are vulnerable to cost inflation.
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"You have import duties and you have cost inflation with rising steel prices, while the duties and other things increase the uncertainty of the business cycle," Danielson said.
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Newell Brands – Jefferies cut the household products maker to "hold" from "buy" following Newell's cautious comments on its 2018 outlook, specifically input cost inflation and higher investment spending.
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Cost inflation will in turn dampen the supply response to higher prices and intensify upward pressure on prices during the second half of the oil-price cycle's expansion phase.
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This information is not easily available from in-house providers, which also do not need to account for the cost inflation that occurs during the life of a contract.
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The rate of input cost inflation also accelerated to the sharpest recorded since September 2011, largely due to increased prices for raw materials such as steel, copper and coal.
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Walmart merchandising issues, Chicago bakery margin/mix headwinds, and general cost inflation have all driven fundamental underperformance relative to peers, as revenue growth decelerated and margin contracted at Hostess.
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Despite input cost inflation easing to a seven-month low in November, stronger business demand let firms raise prices more steeply and improve margins, posing upside risks to inflation.
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While pricing continues to improve, input cost inflation, which includes sand costs and pressure on wages, would continue to be a headwind for the industry, CEO James Stewart said.
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"As this capacity is being consumed, we have seen labour and materials cost inflation in select product lines and basins," the company wrote in its first-quarter earnings release.
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If the tariffs are maintained, depending on the degree of the cost inflation and their ability to push back, this can be anywhere from margin eroding to business destroying.
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Hees said U.S. cost inflation in the third quarter had been greater than expected, and that Kraft Heinz had delayed some supply chain projects that would have cut expenses.
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"Britvic has delivered a strong first-half performance driven by organic revenue growth in all our markets and successful management of input cost inflation," Chief Executive Simon Litherland said.
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The company expects underlying cost inflation to be near 2602.5 percent, compared to rates of between 20958 and 4 percent it said it had seen over the past six months.
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Despite input cost inflation easing to a seven-month low in November, stronger demand let firms raise prices at the fastest pace since February 2017, posing upside risks to inflation.
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"The Alunorte news means no imminent tightening of the aluminium market from upstream supply disruptions and no further cost inflation on the alumina side," said Julius Baer analyst Carsten Menke.
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And the maker of Dulux paint, citing cost inflation and currency factors, said it would not achieve a 100 million euro improvement in annual operating profit it promised in April.
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"The company is holding guidance but the shape changes with lackluster Legoland performance and increased cost inflation, partially offset by better than expected Resort Theme Park trading," wrote Liberum analysts.
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The company, which mines gold and silver in Mexico, said it expects cost inflation in 2018 to be about 7 percent, compared with the 6.4 percent it faced in 22017.
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Now that his wife is known to be a part of that cost-inflation process, he may lose the chance to do the right thing on this issue for good.
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Yes, but: "While shale companies are expected to continue to achieve efficiency gains, they are starting to face cost inflation for some inputs, especially skilled labor," the World Bank notes.
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By contrast transport company Stagecoach slumped 6 percent, making it the biggest FTSE 250 decliner, after brokerage Jefferies cut its rating and flagged caution on cost inflation headwinds and overcapacity.
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Transport company Stagecoach slipped 6 percent on Jefferies' rating cut, flagging caution on cost inflation headwinds and overcapacity, while real estate investment trust Hammerson also weakened after a Stifel downgrade.
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"The issue is primarily one of cost inflation and we're seeing and expecting an acceleration on the rate of inflation across a number of ingredient and packaging items," DiSilvestro said.
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"The industry has seen significant cost inflation ... driven by labour, the national minimum wage along with the inflation cost of goods sold and also taxes that we have," Mackenzie told reporters.
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The company also cut its quarterly dividend to 33 cents per share from around 63 cents per share, saying the industry would remain challenged from cost inflation in the near term .
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The group expects sales and profits to grow moderately in 2019, it said, reflecting energy cost inflation and higher demand for construction materials in key markets Indonesia, Europe and North America.
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"Looking towards the second half, headwinds in the form of currency and cost inflation will be broadly neutral, and incremental operating investment will be limited," Chief Executive Officer Jakob Sigurdsson said.
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Delvaux told analysts on a call that he expected price increases and cost savings to more than compensate in the second half for higher U.S. import tariffs and other cost inflation.
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Boliden CEO Mikael Staffas said cost inflation in 2018 had been 4 percent versus last year but declined to forecast how much costs would rise over the remainder of the year.
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The company said trading in the quarter ended June 30 had proved to be "increasingly more challenging" as it also faced cost inflation pressure in the first half of the year.
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He said Vitol expected U.S. output to climb by 20133-0.6 million barrels per day (bpd) next year but the increase would cause cost inflation and make some production loss-making.
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This started to happen in 22020H:18 as gross margins began to surprise to the upside after a particularly difficult year with freight cost inflation in 2H:17 and 1H:18.
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The Dutch company, citing cost inflation and currency headwinds, said it would not achieve the 100 million euros ($121 million) in 2017 operating profit it promised when rejecting a recent takeover.
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Its backlog will likely continue rising as a result of strong demand, and shareholders will look to see that material cost inflation due to steel tariffs isn't side tracking earnings growth.
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Procter & Gamble — The consumer products giant was cut to "hold" from "buy" at Stifel Nicolaus, which pointed to the potential negative effects of a strong dollar, as well as possible cost inflation.
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Adding to the uncertainty are these conflicting scenarios: If prices rise rapidly, low barriers to entry and the very high number of onshore players in the United States could cause cost inflation.
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"So even though Yum, as franchisor is somewhat insulated from cost inflation related to commodities and labor, we also recognize that these items directly impact the franchisee and ultimately the entire company."
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Samuelson said that Electrolux would explore curbing discretionary spending in areas such as marketing to offset some of the cost inflation and that it was also rethinking its capital investment in North America.
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Pubs have been impacted by people buying drink in supermarkets to consume at home, and restaurants are struggling to deal with cost inflation and oversupply after rapid expansion in recent years, it said.
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When asked about the effect on other products such as doors or cabinets, where lumber may be a larger share of costs, Wetenhall said: "We see minimal input cost inflation across the landscape."
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This has led to weak profitability across the sector as cost inflation could not be passed on to payers, which now threatens care operators' business model and makes leveraged capital structures increasingly unsustainable.
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"We are also confident about the outlook, with production expected to increase by 3 percent in 2019, with cost inflation fully absorbed by our productivity and cost improvements," Cutifani said in a statement.
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Analyst Charlie Campbell at Liberum Capital believes that "margin pressure" will hit housebuilders in the coming years as house price inflation is suppressed by a more vigilant regulator and build cost inflation returns.
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"In 2017, Chinese supply will be under pressure by significant cost inflation, environmental regulations as well as continuation of supply side reform," Chief Financial Officer Alexandra Bouriko told reporters on a conference call.
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"We have seen further milk cost inflation since the half year and have now announced increases in the price paid to farmers of 13 pence per litre since June 2016", Dairy Crest said.
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"The consultation process is as a result of deteriorating operations and market conditions across the South African ferrochrome industry, including unsustainable electricity tariffs and interruptions, cross subsidies and real cost inflation," Merafe said.
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Yearly health care cost inflation for all Americans for the decade before the health law (83-2010) averaged 7.9 percent a year and in the five years since, just 5 percent a year.
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"We have seen further milk cost inflation since the half year and have now announced increases in the price paid to farmers of 8.28 pence per litre since June 2016", Dairy Crest said.
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"There are a lot of companies, or arguably almost all companies, in healthcare that benefit from cost inflation running as high as it has been for many years," ISI Evercore analyst Michael Newshal said.
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The broker found input costs for European consumer staples increased 13 percent year-to-date versus 2016, suggesting 2017 would be the first year of input cost inflation since 2011, helping drive firmer pricing.
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"A consistent focus on cost reduction, especially during the fourth quarter, where cost reductions more than compensated for cost inflation, has allowed us to continue to deliver solid results," Danielson said in a statement.
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The world's second-largest cement maker expects sales and profits to grow moderately, it said on Thursday, banking on energy cost inflation and higher demand for construction materials in Indonesia, Europe and North America.
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Taylor Wimpey is among the homebuilders that has warned of rising costs as it stocks up on building materials, but the builder on Wednesday said that it expects cost inflation to reduce in 13.
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Greene King, which plans to close between 100 and 110 pubs this year, said its plan to help offset cost inflation of 45 million pounds ($58 million) to 50 million pounds was on track.
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Solid growth in demand was despite output prices rising at the fastest rate in nearly three years and input cost inflation hitting a 13-month high, which suggest a further quickening in overall inflation.
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Limitations in the rating relative to its peers reflect a largely domestic focus, a successful content strategy which is likely to entail ongoing cost inflation, high pension deficit payments and a degree of regulatory overhang.
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The acute shortage of specialist labour and supply firms contributed to the enormous wage and cost inflation in the industry between 2004 and 2014 as it struggled to increase output in response to soaring prices.
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It cautioned cost inflation and currency moves would have slightly negative effects this quarter on purchasing costs, and there would be more markdowns than a year ago due to the weaker-than-expected fourth-quarter sales.
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Higher crude prices are driving cost inflation and U.S. tariffs on imported steel also are "a fairly significant item for us," Alan Hirshberg, executive vice president for production, drilling and projects, said on the same call.
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According to the report, emerging markets continue to offer many exciting investment opportunities and valuations are still low compared with developed markets following several years of declining earnings due to high cost inflation and lower demand.
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The company, with over a 130-year old history, has also been hit by cautious consumer spending by Britons as the UK faces cost inflation and economic uncertainty after Britain's vote to leave the European Union.
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This reluctance to cleanly kill off such a key reason for health coverage cost inflation sure looks a lot like crony capitalism on behalf of protecting the bigger health insurance companies against newer and smaller competitors.
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"We see balanced risk/reward from current levels, noting continued competitive investment from the KO system, unfavorable FX, incremental cost inflation, and a further deterioration in emerging markets," Powers said in a note to clients Tuesday.
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But group operating profit before exceptional items, depreciation and amortisation fell 5 percent to 59.7 million pounds ($75.53 million) as introduction of the national living wage, increased property costs and general cost inflation hurt the company.
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Volume Growth Supports Profitability: Despite a comparatively stable pricing environment at present, Fitch expects structural pressures on pricing to continue in many of Synlab's core markets as healthcare payers seek to manage rising medical cost inflation.
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Inflationary pressures on costs were likely to continue with weak demand and muted consumer spending, the company warned, adding that recovering underlying cost inflation in its market prices and efforts to cut costs remained a priority.
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"Some companies raised their tariffs to protect margins but, with the pace of cost inflation still far exceeding that for charges, there seems scope for further price hikes in the early part of the year," Leake said.
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John Lewis's 50 department stores and home shops made an operating loss before exceptionals of 19.3 million pounds, hit also by a decision not to pass on all the cost inflation from a weaker pound, it said.
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Encana Chief Executive Doug Suttles told investors on a fourth-quarter earnings call he expected the company would be able to hold year-over-year drilling and completion costs flat despite cost inflation in some oilfield services.
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"Cost inflation has been lower than expected due to a fall in the Brent oil price and the European gas price partially offset by an appreciation of the Ukrainian Hryvnia versus the U.S. Dollar," the company said.
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CVS Health also said that it will, on a quarterly basis, evaluate medications "with egregious cost inflation" that have available, clinically appropriate and more cost-effective alternatives, and possibly remove the more expensive drugs from its standard formulary.
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Some updates disappointed however and HeidelbergCement , one of the world's largest cement makers, fell 6.7 percent as it trimmed its profit guidance for 2018, citing bad weather in the United States and higher-than-expected energy cost inflation.
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Other producers have also warned of the impact of cost inflation, while Glencore's share price has come under additional pressure from its exposure to political risk in Democratic Republic of Congo and a U.S. Department of Justice investigation.
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The company said in June it expects full year commodity cost inflation will be between $675 million and $775 million, $250 million more than it assumed in April and $375 million more than its original plan in January.
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The group said it had made a strong start to 2020 in January but saw a significant slowdown in February after widespread storms hit Britain, while it also called out staff wages and pork commodities driving cost inflation.
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"It's our primary objective, together with our franchise partners around the world, to drive sales growth in order to offset any cost inflation that we may face from year-to-year," Schwartz said in response to an analyst's question.
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"Steel tariffs and fuel cost inflation are affecting the market as a whole and we are passing that through as an industry, and ourselves, as a price increase, and that has a negative effect on demand," Samuelson told Reuters.
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"The more crowded field has driven higher demand for content against a more limited supply of production and talent, resulting in cost inflation (particularly for marquee programs and show runners)," analysts at UBS wrote in a report distributed Tuesday.
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"The year-on-year regression in the performance of the maize category, off the strong comparative period base, was more than expected, given sustained selling price deflation despite raw material cost inflation and a weaker milling performance," it said.
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The revised forecast from Skanska came as HeidelbergCement , the world's second-largest cement maker, said it expects sales and profits to grow moderately, reflecting energy cost inflation and higher demand for construction materials in Indonesia, Europe and North America.
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Even in Britain, data from the RAC Foundation, a research group, suggest that driving-cost inflation (which includes fuel as well as insurance and so forth) has been lower than bus- or train-ticket inflation over the past ten years.
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"The market for quality people is tougher than it used to be," due to the tight labor market, though the bank has not seen 'significant' cost inflation as a result of that, Kevin Glass, CIBC's chief financial officer told Reuters.
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The UK market for sports rights continues to show significant cost inflation - the 2015 auction of EPL rights for the seasons from 2016 saw costs across the total available packages rise by an aggregate 70% (BT's packages rising by 30%).
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Such a move would underscore optimism among investors that Brazil's subsidized housing will remain more resilient than higher-income segments to fallout from the harshest recession in eight decades, slowing mortgage loan disbursements and persistently high cost inflation for homebuilders.
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When we marry the combination of competition, ratings pressure, and programming cost inflation, we think there is the potential that T/TWX management will look to increase programming spend following a review of the TV landscape once the deal closes.
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Boersen-Zeitung cited sources close to the commission as saying the final agreed amount included a 35 percent top-up on financial provisioning already set aside by the companies to account for the risk of unforeseen cost inflation in storing the waste safely.
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"At this stage, given what we know about accelerating cost inflation in part due to the anticipated impact of import tariffs and the continuing headwind on transportation and logistics cost, we expect our margins will be down in fiscal 2019," he said.
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For Kirin it marks a departure from the Brazilian market, having paid some $3.9 billion in 13 for 12 breweries, a business which has subsequently lost market share and seen raw materials costs rise due to a weak currency and rampant cost inflation.
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Looking at individual stocks, Akzo Nobel issued a profit warning, citing cost inflation and currency headwinds, and said it would fall short of reaching the 100 million euros ($121 million) of 2017 operating profit it promised when blocking a recent takeover attempt.
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The promise is that by having people pay for more of their health care in cash and by giving them more freedom in what plans they're allowed to buy, you would end up with less spending, lower prices and less cost inflation.
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Ahead of a capital markets day event for investors, Sainsbury's said it planned to reduce costs by about 220 million pounds over five years as its brings its businesses together, in addition to ongoing cost savings to cover the impact of cost inflation.
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"Due to the deteriorating inflation dynamics - although inflation is still driven by non-monetary factors, this is cost inflation - we think the central bank could take a pause for a quarter and wait until prices and expectations stabilize," said Halyk Finance analyst Asan Kurmanov.
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"We have continued to experience some pressure with respect to the cost and availability of certain materials in the supply chain as the output from the industry continues to expand," the company said, adding it expected cost inflation to be around 4% this year.
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"With the economy near full employment and more and more signs of higher wage and unit labor cost inflation, the risks are rising that it will be PCE moving up to CPI," said Torsten Slok, chief international economist at Deutsche Bank Securities in New York.
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"It is a sweet spot for IOCs (international oil companies) where they have relatively low cost inflation, a reasonable oil price and at these levels they can generate significant cashflow to go toward paying down debt (and share) buybacks," Bishop told Reuters in an interview.
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"At this stage, given what we know about accelerating cost inflation in part due to the anticipated impact of import tariffs and the continuing headwind on transportation and logistics cost, we expect our margins will be down in fiscal 2019," DiSilvestro said at the time.
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"We are downgrading shares of JBLU ... as we believe RASM [revenue per available seat mile] pressures from capacity growth and new market expansion, in addition to cost inflation, will keep shares range bound in the near term," analyst Savanthi Syth wrote in a note to clients Wednesday.
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"Attrition remains a bug-bear and this is an area that the IT major needs to focus (on) given major digital talent shortage and attendant margin pressure due to wage cost inflation," Harit Shah of local brokerage Reliance Securities said in a note after the results.
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"Mix pressures and labor cost inflation are mounting faster than anticipated at Ground... We are increasingly concerned operating margins in percent terms will be pressured even if Ground can lower costs fast enough to grow operating profit in dollars," J.P. Morgan analyst Brian Ossenbeck said in a note.
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And guys, today's moves what they're talking about it's all about supercharging that growth and staying more competitive in an environment where they can't control things, like the strong dollar in the cost inflation and the tariffs which are all impacting this global company gets 60% of its business overseas.
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Less than three years ago, contract drilling executives were bemoaning the difficulty of hiring enough quality personnel for the rigs, while operating companies scrambled to mitigate rig-cost inflation by locking in day rates for the prized high-spec rigs under long-term contracts of three-to-five-year duration.
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Meanwhile Obamacare, while a mess in certain ways, is messier on a smaller scale than its critics (myself included) feared: Health cost inflation isn't spiraling and employers aren't dumping people on to the exchanges in huge numbers; there are many losers but the insurance expansion is large enough to matter.
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One of the issues that's been so much in the headlines over the last six months or so has been Berkshire's move to go along with JPMorgan and Amazon to try and come up with a way to reign in health care cost and health care cost inflation in the United States.
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"We will have a little bit of cost inflation on the staffing front but still way lower than everybody else out in the market at this point in time and indeed we are very much on track to deliver our 200 million customers over the next seven years to March 2024," Sorahan told CNBC.
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The company, which sells drinks in the still and carbonated categories worth over 100 million pounds a year in over 85 countries, had warned that its home market would remain challenging this year, "with the addition of currency-related input cost inflation to an already price-competitive environment" (Reporting by Rahul B in Bengaluru; Editing by Sunil Nair)
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"The increase in investment expenditure is essentially due to delays caused by a longer period of critical weather conditions during the first phase of the project, significant cost inflation as a result of the unforeseen construction boom in the Corpus Christi area starting 2014, as well as additional investments, technical optimization, and environmental measures," the company said in a statement.
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"We remain nervous," he wrote in a client note, adding that Interserve's support services business could be impacted by a reduction in discretionary spend and cost inflation in the UK. While most British support services firms have reported resilient trading since Britain voted in June to leave the EU, recent warnings from Capita and Mitie and a slowdown noted by Carillion have highlighted that Brexit uncertainty has caused customers to delay decisions.
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Second, it takes part of Obamacare's basic structure — tax credits, pegged to income, to enable the lower-middle class and near poor to afford coverage — and uses it to further two of the more compelling conservative health policy objectives: higher-deductible plans (which tend to reduce health care cost inflation) rather than comprehensive ones (which exacerbate it), and subsidies for private insurance rather than Medicaid for the near-poor, because private coverage may deliver better health.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for PJSC Tattelecom include: - Stable market positions in fixed-line segments; - Mobile subscriber market share increases to 103% by 2019 from 5% at end-2016; - Annual revenue growth in low-mid single digits in 2017-2020; - EBITDA margin just below 30% in 2017-2020, due to the drag from mobile development and cost inflation; - Mobile segment to become EBITDA-breakeven in 2020; - Capex intensity at 0003% of revenue in 2017 and gradually declining to 18% in 2018-2020; - Dividend payments of around RUB240 million per year in 2018-2020.
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In times of financial stress larger more diversified operators tend to have levers such as asset sales or minority listings available to them, levers that are less available to a company such as BT. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for BT include:- - low single-digit underlying revenue growth (excluding transit revenues) driven by strength in the consumer segment and an improved competitive position following the acquisition of EE, especially in the enterprise segment; - EBITDA margin to remain in the low to mid-thirties, reflecting some incremental content cost inflation offset by revenue growth, cost efficiencies and the realisation of targeted EE integration synergies; - estimated spectrum renewal payment in the region of GBP300m in FY17; - capex to increase to around GBP0003bn - GBP3.6bn in FY17, reflecting the EE acquisition, integration capex and the ESN contract, moderating thereafter; - dividend growth of around 12% reflecting public guidance of above 10% and share buybacks of around GBP200m per year.
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