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Monday, May 20, 2002
Series of price hikes on CD-R discs to come at CMC Magnetics


CMC Magnetics is planning to reset its pricing on CD-R disc products. The first price increase, to range from 7-8%, will be implemented next month. The second increase, at 5-10%, is scheduled for the end of June, followed by another 5-10% jump in August. The adjustments are being made amid rising prices of polycarbonate, the key plastic material used in CD-R substrate.

Bob Wong, president of CMC Magnetics, said the company’s new pricing has been fully communicated to its clients, which also have been advised to start stocking up on inventory as the industry enters the selling season that starts mid-year. Separately, Wong predicted sales in the current quarter to rise 10% on quarter and improved gross margins on higher pricing to reflect on the bottom line in the third quarter.


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