Inflation Commentary per BofA

“The product and shipping cost inflation is not just high, it’s brutally
high. The chaos and the impact, not just from a financial perspective,
but from a toll it takes on our human capital is immense.” Daniel
Florness, CEO of Fastenal ($FAST)

“We are aggressively combating raw material inflation with significant
pricing actions across each of our businesses. We implemented multiple
price increases in the quarter. We will continue to do so as necessary.”
John Morikis, CEO of The Sherwin-Williams ($SHW)

“And so for this quarter, we think that the primary cause of supply
chain-related shortages will be the chip shortage. It will affect – it is
affecting, I should say, pretty much most of our products currently.”
Tim Cook, CEO of Apple ($AAPL)

“We estimate the cost of labor, labor-related productivity losses, and
cost inflation to have added approximately $2 billion in operating cost
in Q3, particularly in August and September.” Brian T. Olsavsky, CFO of
Amazon ($AMZN)

“We do have that commodity inflation, but we still remain convicted
about our ability to be able to offset either that through productivity or
through some of the pricing actions that we’ve seen.” Paul A. Jacobson,
CFO of General Motors ($GM)

“We believe we’ve got pricing power really better than almost anybody
if not everybody in the industry. So, we’ll be very patient. We’re not
going to cover inflation that hits in one quarter or another immediately,
but we will carefully consider in the fourth quarter what action we will
take.” John R. Hartung, CFO of Chipotle Mexican Grill ($CMG)

“In an inflationary environment, the first place any business should go
to is how to really ensure that they’re able to get productivity gains.
And even dealing with constraints, for example, if you have supply chain
constraints, one of the things you want to do is run your factories at
the efficient frontier. That means things like digital twins, simulation
are the ones where you’re going to make sure that every production run
has the least amount of wastage […] So that’s why we are very, very
excited about sort of making sure our software products are available
to our business customers all around to be able to manage through this
inflationary environment.” Satya Nadella, CEO of Microsoft ($MSFT)

“Consistent with the broader market, we are experiencing inflation
pressure, which we expect to be limited for the balance of 2021. Next
year we anticipate a more challenging inflation environment. […] Our
shorter-cycle businesses felt the impact earliest, while our longer-cycle
businesses were more protected, given expanded purchasing and
production cycles.” Carolina Dybeck Happe, CFO of General Electric

“US labor availability remains tight across most industries, driving wage
inflation and staffing challenges that have resulted in a small number of
our stores limiting operating hours, particularly during the early
morning and late-night dayparts.” Chris Turner, CFO of Yum! Brands

“Driver supply has materially improved and retention has been strong in
Q3, after drivers increased by roughly 45% versus last year. New driver
growth was robust, up 60% year-over-year. Keep in mind in September,
the enhanced federal unemployment benefit sunset…“ Logan Green,
CEO of Lyft ($LYFT)

“We’re on track to implement price increases on 50% of our portfolio,
most of which will take effect in November. We’re also planning
additional pricing actions through the end of fiscal 2022, resulting in

increases to about 70% of our portfolio.” Linda Rendle, CEO of Clorox

“We have to think about our strategy, because you see the price for
metal grows dramatically for aluminum, 20%; for copper about 30%.
Some chips price also increased north to 20% – 30%, but sometimes a
3 up to 10 times. And in such kind of conditions, of course, we have to
see also some possibility to, again, first of all, optimization our cost and
also to discuss with our existing and potential customers about future
preparation” Eugene Scherbakov, CEO of IPG Photonics ($IPGP)

“For 2022, our preliminary view anticipates organic aggregate
shipments will increase in the low to mid-single-digits as contractor
labor shortages and logistics challenges continue to impact an
otherwise robust demand environment. Underpinned by our value over
volume pricing strategy, we anticipate mid to high-single-digit growth
in 2022 organic aggregates pricing.” C. Howard Nye, CEO of Martin
Marietta Materials ($MLM)

“In the short term, we have adapted our promo and trade bill spending
to the elevated cost environment, but as we expect these dynamics to
persist into 2022, we have also taken and announced price increases
across a significant number of markets. Of note, we announced a new
round of pricing last month in the US which will go into effect at the
start of next year.” Luca Zaramella, CFO of Mondelez International

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