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Companies Benefiting from Lower Commodity Prices | PowerOptions Web Log
With the recent strength of the U.S. dollar and the fear of a global recession, commodity prices have plunged over 50% in some cases, over the last few months. While this is hurting the majority of industrial and commodity based companies, there are some consumer staples and consumer goods companies whose raw costs are declining because of the decrease in commodity prices, which should lead to increased profit margins. Companies which may benefit the most from these lower commodity prices are: Kimberly-Clark Corp. (KMB), General Mills (GIS), Tyson Foods (TSN), and Goodyear Tire & Rubber Co. (GT). Kimerly-Clark (KMB) Kimberly-Clark (KMB) manufactures and markets health and hygiene products worldwide. These products include children’s diapers, bathroom tissue, paper towels, and various other related household products. Some of their brand names include Huggies, Kleenex, Scott’s, and Kotex. Since diapers are made of approximately 30% plastic, oil is a main component in its...