MARCH 05, 2004 -- Cybex International, an exercise equipment manufacturer, announced effective April 1, a steel surcharge equal to 3% to 6% of the Manufacturers Suggested Retail Price. The exact surcharge to be levied will vary from product to product, depending on the amount of steel necessary to manufacture.
Edward Kurzontkowski, SVP/manufacturing said, "We buy raw sheet steel, employ a highly skilled workforce in our plants in Minnesota and Massachusetts, and then manufacture our own product designs from scratch. Unfortunately, the explosive increase in steel prices has necessitated this surcharge in order to continue manufacturing the optimal equipment that distinguishes Cybex products from the rest of the industry."
John Aglialoro, COB/CEO, stated: "We have seen some spotty inflationary pressure, not only from our steel vendors, but also from some other suppliers. The ultimate success of Cybex depends upon our ability to achieve the manufacturing margins needed to fund growing operations as well as to produce a profit for our shareholders. Unfortunately, global tariff warfare has created continuing price disruptions...often either too low for steel producers to prosper, or too high for rational customer pricing by companies like Cybex. Here again, national governments at the expense of the consumer are creating distressing economic imbalances not a free marketplace."