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Bimba Manufacturing Company Case

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February 2018 sales increased 17.1%, driven by triple digit growth in sales to Lyon and Healy, Ocenco, and Asco (formerly Numatics Actuator) and 6% growth in Bimba sales. Typically, sales to Bimba account for a major portion of total annual net sales and any disruption in our relationship with Bimba may result in a change in revenue. On February 1, 2018, London-based IMI, a world leader in motion and fluid control technologies, acquired Bimba Manufacturing Company. The acquisition aligns with IMI’s strategy to increase its US revenues while extending IMI Precision Engineering’s presence in its core Industrial Automation segment. After meeting with IMI and Bimba executives, Louis received assurances that the acquisition will result in additional manufacturing opportunities for Calumet Screw Machine Products. …show more content…

In addition, raw materials and various component part costs are subject to price volatility and fluctuations in availability. We source most materials through multiple suppliers, while we secure our primary material, 6042 aluminum through a short-term contract with Central Steel and Wire. Compared with the prior year, February 2018 aluminum prices trended 24.1% higher, while brass pricing rose 25%. As a result, February 2018 net purchases increased to $149k or 23.2% of sales compared with $109k or 19.8% of sales in the same period last year. As with other commodities, supply and demand and various economic factors influence scrap metal prices. In February 2018, aluminum scrap metal prices ended 8.6% above February 2017 prices and 5% lower than the prior month. Despite a 15.7% drop in total scrap volume, February 2018 scrap revenue increased 38.2% from February 2017

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