Second quarter net sales were $848 million, down $58 million, or 6.4%, from the second quarter of 2016. After adjusting for the December 2, 2016 acquisition of Continuum and the March 1, 2017 acquisition of Hudson Yards, changes in foreign exchange rates, and pass-through paper sales, organic net sales decreased 6.8% from the second quarter of 2016. The decrease in organic net sales was due to lower volume and price declines in both the Print and Office Products segments.
Sun Chemical will increase the prices of its solvent-based inks and coatings in North America, effective July 1, 2020.
Due to the significant increase in the demand for alcohols and solvents for use in sanitizers and pharmaceutical initiatives, the prices of these materials have increased substantially. In order to secure the needed components for the production of solvent-based inks and coatings, Sun Chemical has experienced raw material cost escalation during the second quarter of 2020. These increases are expected to remain in place and possibly accelerate throughout the remainder of the year.
“The COVID-19 pandemic is driving an increased demand for various alcohols and solvents to combat the virus and allow for the gradual reopening of economies around the globe,” said Chris Parrilli, President of North American Inks, Sun Chemical. “These raw materials are critical to the proposed safety practices of manufacturing organizations and service industries where the focus on consumer and employee health is at the forefront of new sanitizing protocols to help slow the spread of the virus.”
“The dynamics that have taken place over the last three months are unprecedented and the future of the pandemic remains unpredictable. However, Sun Chemical’s desire to deliver best-in-class supply, service, and quality, as expected by our customers, requires us to ensure a reliable source of raw materials. In order to continue to meet these expectations, we unfortunately must raise prices to offset the extraordinary market undercurrents that are driving up raw material costs.”