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Industry squeezed by soaring energy prices { June 26 2005 } Original Source Link: (May no longer be active)    http://news.ft.com/cms/s/26b162bc-e66f-11d9-b6bc-00000e2511c8.html http://news.ft.com/cms/s/26b162bc-e66f-11d9-b6bc-00000e2511c8.html Industry squeezed by soaring energy prices By Dan Roberts in New York, Bertrand Benoit in Berlin and David Turner in Tokyo Published: June 26 2005 19:44 | Last updated: June 26 2005 19:44 Energy prices appear to have reached a tipping point for many industrial users, as inflation outstrips companies' capacity to absorb higher costs by increasing the prices they charge consumers. European, US and Asian stock markets all fell last week as oil reached $60 per barrel and corporate leaders around the world issued a series of high-profile profit warnings. Shares in energy-intensive companies such as manufacturing and transport were hardest hit. FedEx, for example, the US delivery group that has been a leading beneficiary of booming global trade, broke its winning streak by warning that this quarter's earnings would be hit by jet fuel costs despite an automatic surcharge for customers. And the metals industry, which had been enjoying its best growth for years, is now squeezed between the high cost of energy-related inputs such as electricity and coal and slowing demand from leading customers. Corus, the Anglo-Dutch steel producer, last week warned it may have to shut its aluminium plant in Voerde, Germany, because of high electricity costs. Alcoa, the world's largest aluminum maker, warned of 6,500 jobs cuts and plant closures in Germany and the US because of a drop in its prices and higher energy costs. Energy prices have hit German business on two fronts by weighing on the already feeble domestic demand while eating away at companies' margins, especially in the large industrial sector. The heavy layer of regulation and comparatively high energy-related taxes, meanwhile, meant German-based businesses were facing higher energy bills than their competitors abroad, he added. Additional reporting by Andrew England in Nairobi

120 thousand united airline employees lose pensions { May 11 2005 } American obesity sending health costs soaring Consumer prices rise greater than expected Dow has biggest 2 day drop in two years Durable goods orders fall by most in 2 years Economy drags heels and inflations fears rise { April 29 2005 } Fed raises key rate on inflation fears { May 3 2005 } Fed raises rates to 3 and half as measured plan Fed says inflation pressures could be intesnifying { April 12 2005 } General motors shifts engineer positions to brazil { June 29 2005 } General motors to cut 25 thousand jobs { June 8 2005 } Greenspan says fed will keep raising rates Greenspan will keep raising rates he says Housing prices loom as concern { July 20 2005 } Huggies cuts six thousand jobs Industry squeezed by soaring energy prices { June 26 2005 } Kodak lays off 10 thousand workers { July 20 2005 } London blasts help dollar and stock gains Manufacturing slow down boosted stocks they say Manufacturing weakest since 2003 { June 1 2005 } Massachusetts homes sales plunge 11 percent { June 24 2005 } Real wages falling at fastest rate in 14 years { May 10 2005 } Sales of homes hit record as prices soar { May 24 2005 } Snow says oil prices hurting economy { June 28 2005 } States costs soar under drivers license law Stocks continue april decline hitting 2005 lows Stocks fall amid oil price worries { June 21 2005 } Stocks head lower on surging oil Stocks rise on jump in oil prices { June 17 2005 } Student loan interest will double Trade deficit unexpectedly shrank to 55b Trade gap widens more than expected US stocks fall as IBM earnings drag tech shares down US tourism losing billions because of image { May 8 2005 } Wages lagging behind inflation { April 11 2005 } Weak consumer spending damps speculation of quickening inflation Files Listed: 36

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